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SPEECH
Indian
Banks and the Global Challenges
- - V Leeladhar
©
2006 Reserve Bank of India (www.rbi.org.in). Inaugural
address by V Leeladhar, Deputy Governor, Reserve Bank
of India, at the seminar on "Indian Banks and the Global
Challenges" organized jointly by the Indian Merchants
Chamber and the Indian Banks Association in Mumbai
on January 31, 2006.
CASE
STUDY
Credit
Card A Case of South Korea
- - Nirali Kamdar
In
the aftermath of the economic crisis of 1997-98 South
Korea has undertaken several measures to deal with prudential
problem relating to credit cards. This study attempts
to find out why the credit cards have been a disaster
in South Korea.
©
2006 IUP . All Rights Reserved
BOOK
REVIEW
Asset-Liability
Management in Banks: Concepts and Cases
- - Nancy Victor
With
the onset of financial sector reforms and the liberalization
processes, the scope of the banks in todays scenario
has been extended from mere acceptance of deposits and
lending of loans to a wide range of activities. Thus,
the concept of Asset-Liability Management (ALM) was
born and is prevalent since then. This book is a compilation
of contemporary articles that offer insights into the
basics of ALM and its predominant role as a Risk Management
tool.
© 2006 IUP . All Rights Reserved
COVER
STORY
Interest
Rates in India: What Lies Ahead?
- - K Seethapathi, Arindam Banerjee
The
recent hike in the repo and reverse repo rates by the
Reserve Bank of India in the third quarter review of
the monetary and credit policy is an indication of the
interest rate scenario that awaits us. With the constantly
reducing liquidity in the system, should we expect a
new interest rate regime?
© 2006 IUP . All Rights Reserved
TREASURY
Indias
Experiment with a New Settlement System for its Domestic
Foreign Exchange Market
- - Siddhartha Roy
The Reserve Bank of India introduced a new settlement
system in May 2005 to mitigate risks in payment systems.
The Central Bank intends to rationalize clearing operations
by setting up new clearing houses. The author brings
out the features of new settlement system and its impact
on risk reduction.
©2006 IUP . All Rights Reserved
TREASURY
Analysis:
The 2005 Year-end Gold Rally
- - Mathew John
Gold
prices witnessed a sharp increase in 2005. With prices
ballooning to 17-year highs, patient investors will
be rewarded by buying in the next big dip. This article
analyses the causes of the year end gold rally.
© 2006 IUP . All Rights Reserved
TREASURY
India
Millennium Deposits
- - Kalyan Sandilya J
The
State Bank of India floated the multi-billion dollar
deposit issue to boost the foreign exchange reserves
of the country and support the weakening rupee against
the dollar. These bonds were specially meant to design
the need of the NRI community for foreign currency denominated
deposits or other bank instruments that served as a
vehicle to save and to remit necessary funds. Though
IMD redemption bond is the immediate trigger for the
tightness in liquidity, what lies ahead?
© 2006 IUP . All Rights Reserved
FOREX
Exchange
Rates Volatility and Associated Risks: Some Techniques
and Strategies to Manage Them
- - U Jayalakshmi Srikumar
The
global economic environment is a highly dynamic one.
With increase in trade the financial markets have grown
across the globe. Trading and financing of trade therefore
involves active participation by corporates in a highly
volatile foreign exchange market. This being inevitable
in todays context, an element of risk emanates as a
natural off-shoot. Companies will therefore have to
learn to `hedge effectively. This article examines
the dynamics of the foreign exchange markets, the associated
risks for a corporate, the relative merits and demerits
of different popular methods of hedging and draws out
an effective blueprint of strategies to cope with these
risks.
© 2006 IUP . All Rights Reserved
FOREX
Official
Development Assistance: A Source of Foreign Finance
- - Palash Goswami
Among
the various available sources of project financing -
Official Development Assistance (ODA) provides a lucrative
opportunity. With its flexible nature, this financing
option comes at cheaper price.
© 2006 IUP . All Rights Reserved
RISK
Brazils
Hedge Funds Break Through
- - MPM Vinay Kumar
Brazilian
hedge fund industry is fast emerging as an important
player in the Latin American hedge fund market. At present
two drifts are noticeable. One is - foreign investors
looking for local players through whom they could invest,
and the second - a fund or funds evolving their strategies.
© 2006 IUP . All Rights Reserved
RISK
Trading
Inflation Derivative
- - Dibyendu Dutta
With the fear of inflation creeping into the minds
of investors, it will be prudent to protect one from
the severe consequence of inflation. In this regard,
inflation linked products may provide some respite to
the worried investors.
© 2006 IUP . All Rights Reserved
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