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Questions tagged [banks]

The tag has no usage guidance.

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1answer
155 views

Delta One Trading business [closed]

I don't really know what exactly Delta One desks are doing. So I was wondering if anyone was kind enough to share any papers, articles, blogs that kind of explains Delta One trading Desks activities ...
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1answer
62 views

EURIBOR zero rates vs forward rates to project future income on a bank's loans

I work at an international bank within the M&A FIG team, and have seen that my associate uses the future daily EURIBOR 3M,6M,12M to estimate what the future interest income on a banks loans will ...
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2answers
60 views

Why does the UK government sell RBS shares?

What economic rationality is behind this transaction: They purchase at c.500p in fall 2008 and spring 2009. There has been no dividend. The likelihood for dividend appears to be when economy improves, ...
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0answers
86 views

Why does a low deposit beta impact asset sensitivity for banks?

(I apologize if this question doesn't fit this site since it's not exactly quantitative, but I don't know a better forum) Why does a low deposit beta impact asset sensitivity? Another question I was ...
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1answer
60 views

Banking. What's the difference between provision and capital adequacy regulations? (purpose-wise)

Is such summary reasonable? Provisions = predicted losses should reduce profit already now. (giving stimulus for a bank to make necessary responses already now) Capital adequacy = bank must use ...
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1answer
49 views

Withdrawing monthly from a bank for 40 years [closed]

Consider you have $\$104107.4099$ in the bank with a $.33\%$ monthly effective interest rate. You plan to withdraw a fixed amount X every month for 40 years, such that you make 480 withdrawals in ...
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2answers
796 views

How do firms make money from “flow trading”?

Apologies if this is a very simple question, but how exactly do firms make money from "flow trading"? Is it simply profiting from "selling" direct market access?
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3answers
114 views

Profits of US Banks

Are there any publicly available data on [aggregate] profits for domestic US banks, especially quarterly data? Most studies that I know use the "Financial Statements of Banks" from the OECD but these ...
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4answers
108 views

Do banks have a target balance sheet?

I was wondering if banks have a certain target value when it comes to their balance sheet. I'm not speaking about the target leverage ratio or something like that. It's more like: "In the following ...
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1answer
115 views

Help to understand the XRBL format used in Uniform Bank Performance Reports (UBPR) from the FFIEC

I'm working on a project to extract the reporting data of federal financial institutions from the FFIEC site (using Python programming). The data is coming from the Uniform Bank Performance Report (...
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1answer
67 views

What is the risk-free asset?

We have $dB_t = rB_tdt$. We are told that this corresponds to a "bank"..... how? When I insert money into a bank, how does this correspond to buying an asset for the price $B_t$? It would make more ...
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1answer
112 views

Why can't/doesn't the Fed adjust the federal funds interest rate continuously?

Maybe the question I'm asking doesn't make sense-- but this is something I've wondered about since I learned about the Fed in high school. The media typically talks about Fed interest rate changes as ...
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1answer
49 views

Standars for assigning maturities and hedging account balances in commercial banks

I was wondering wich is the standard for pricing clients account balances in commercial banks. Is there any book that adress alm problems?
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2answers
384 views

Why somebody buy the defaulted loans?

Why somebody buy the defaulted loans from the banks, if the debtors can not pay back their debt? If I bought these loans I will cause losses myself, because nobody will pay me (or just a lower price ...
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4answers
669 views

Could we have prevented the World Economic Crisis in 2008?

There is an expression - "Too big to fall." - which means that if a bank or a financial institution manages a sufficient part of the financial assets than the state can't afford that this bank or ...
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2answers
139 views

Unrecovered debt

When reading an article about banking industry I came up with two questions. I'd be very pleased If somebody could clarify them: How concepts of unrecovered debt and NPL are related? When banks ...
6
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1answer
275 views

Dec 16: FED rate hike?

Various news articles state that next Wednesday a rate hike by the FED was expected. Yet when I look at fed-rate futures, nobody seems to expect that: http://www.cmegroup.com/trading/interest-rates/...
1
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1answer
54 views

Methods or models to predict activity of clients of a bank

I'm a Physicist but I'd like to know if there are some methods or models to predict the activity of the clients of a bank. I heard that banks are interested in this sort of analysis so I got curious ...
2
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0answers
66 views

Want to understand the links and relationship between all the risk metrics?

For Example : if Risk weighted asset (RWA) increased or decreased this month, which other risk metrics could have influenced RWA to increase or decrease. Also in different situations like, upward ...
5
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1answer
216 views

CNY Devaluation: Why EUR up, USD down?

The second unexpected devaluation of the Chinese currency CNY caused some turbulent market movements in currencies today. I was surprised that the EUR went to a 1-week high against the USD up by ...
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1answer
74 views

Is it likely that banks would become clients of algotrading companies? [closed]

Algotrading is growing, while banks don't currently have the HR to continually develop sophisticated algorithms on their own. Is it likely that banks (and governments) would become clients of ...
1
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1answer
272 views

Best sources for worldwide balance sheet data?

I’m interested in databases with quarterly balance sheet data of the financial sector. I’m aware of the following datasets: -Compustat -Compustat Global -Bankscope Can someone point out other ...
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0answers
79 views

Historical list of Primary Dealers in Europe

I would be interested in a list of all the banks and financial institutions that have been Primary Dealers in the European Union from the 1980s until today. For a current list you can check this pdf ...
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1answer
59 views

Data on banks’ leverage

Does someone know free resources to estimate the leverage of the banking and financial sector at an aggregate level? In particular I would be interested in something like Federal Reserve’s Flow of ...
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0answers
64 views

Questions related to the banking crisis during the European sovereign debt crisis

I am studying the European Sovereign Debt crisis and I have the following questions which I am struggling to find examples for: 1) I have heard that during the sovereign debt crisis, European ...
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3answers
130 views

How does US banks ensure that other country's banks aren't counterfeiting USD?

I have had this question for a long time. For example, if I wire 50M USD from China to the US, does the Chinese bank physically deliver 50M USD cash to the US bank? or is it just changing a number in ...
8
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3answers
4k views

Why banks borrow from each other

I was reading on the topic, and would like to be sure that my understanding is correct. For the benchmark I would consider American banking system as I've mostly used sources such as FRS and Federal ...
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1answer
1k views

What are current interest rates on senior/junior/mezzanine loans for e.g. real estate developers?

For a case study I have to work on for a university course, about a real-estate-development project, I need to simulate the financing with different proportions of equity (40%), senior loan (35%), ...
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2answers
1k views

What is a standard credit default swap contract and where can I find spread data? What alternatives exist to judge creditworthiness?

I'm doing some work for a company and one of my tasks is to research credit default swaps on banks and to write a page about them explaining what they are and how they're used to evaluate the banks' ...
11
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1answer
1k views

Where can I find data on the interbank lending market?

Where can I find disaggregated interbank lending data (i.e. bank A lends to bank B x money at y rate)? I could only find data on interest rates. I would accept LIBOR market data as well as any ...
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2answers
730 views

Issues when considering a quantitative trading/finance firm

I have an upcoming quantitative trading interview (prop desk at a large bank), and I would like to have some good questions to ask about the group. However, I am changing fields from academia and I do ...
12
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1answer
333 views

Could banks move to continuous (rather than overnight) funding?

The dominant frequencies for Money Market and FX instruments were 6m and 3m for a long time, and banks slowly moved to commercial trades at those frequencies but funding overnight. If this is a step ...
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1answer
510 views

How does currency valuation depend on the cash reserve ratio for a country?

Currency valuation (with respect to other currencies) is an important parameter in finance, but how is it related to the cash reserve ratio?
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4answers
21k views

What is the role of Credit Valuation Adjustment (CVA) desks in investment banks?

What does a CVA (Credit Valuation Adjustment) desk do, and how are its activities different from other trading desks? Can you work as a quant for a CVA desk and consider your role "front office"?