Reduces profitability for banks

Some banks generate significant income from trading activities. In this paper, we analyze a panel of US banks and find that the effect of trading on bank profitability depends on each bank’s capital ratio. Trading enhances profitability for banks with high capital ratios, but reduces profitability for banks with low capital ratios. Our findings provide empirical support for theories in which trading can divert capital away from relationship lending and undermine bank profitability.

1p chauchaungayxua2 19-01-2020 12 0   Download

Broadly speaking, Islamic modes of finance can be divided into two types: either they provide direct finance as capital funds through partnership (musharakah and mudarabah), or they provide indirect finance through leasing (ijarah) and sale contracts (murabahah, bai ajil, salam, and istisna’a). All modes are based on the principle of riba (interest) prohibition, and all seek to maintain Islamic business ethics (freedom and leniency of transactions, recognition of and regard for private property, and justic.

238p thuymonguyen88 07-05-2013 89 9   Download

These banking successes should be celebrated. They pave the way for broadening access to finance for hundreds of millions, perhaps even billions, of low-income people who today lack ready access to formal financial services. Such access on its own is not yet proven to increase economic growth or to reduce poverty on a large-scale level—and, as a general proposition, we doubt that it will on its own.

32p taisaovanchuavo 23-01-2013 74 5   Download

This book grows out of 20 years’ banking research and training of bankers in Europe, the Americas, Africa and Asia. As deregulation and competition are reducing margins around the world, the need for knowledge on Asset and Liability Management, the control of bank’s profit and risks, becomes an absolute necessity for any banker in charge of a profit centre, central bankers in charge of bank supervision, and banks’ auditors, consultants or lawyers.

171p vigro23 28-08-2012 131 47   Download