How can we raise the capital specification for shadow banks and depository institutions and make them counter-cyclical?

Why are banks currently holding capital well above the minimum regulatory requirement?

how do banks improve asset utilisation to increase Return on Equity and what are the risk implications?

Why do some financial institutions offer more frequent compounding in the financial market?

Can the firm withdraw funds from the investment pool for other investment purposes?

What are the risk implications/shortcomings of financial institutions in increasing their financial leverage to increase return on equity?

1. What are the advantages and disadvantages of using financial leverage? Answer from the banker’s point of view and then from the bank regulator’s point of view.

How is securitization supposed to help banks and S&Ls manage risks andincrease homeowners’ access to capital?

The market for capital Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract capital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the interest rate. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation. Suppose the Federal Reserve (the Fed) decides to tighten credit by contracting the money supply. Use the following graph by moving the black X to show what happens to the equilibrium level of borrowing and the new equilibrium interest rate. Q1. Which tend to be more volatile, short- or long-term interest rates? Long-term interest rates      2. Short-term interest rates Q2. If the inflation rate was 3.20% and the nominal interest rate was 4.20% over the last year, what was the real rate of interest over…

How does risk management affect a company’s ability to finance its projects?