CAMELS Rating System

CAMELS Rating System

CAMELS Rating System

The CAMELS rating system is a supervisory rating system that was developed in the US and is used by bank supervisory authorities to rate financial institutions on six factors. It is applied to all banks and credit unions in the United States. It is also used in other countries by banking supervisory regulators.

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Equity market

Equity market

Equity market

An equity market is a market during which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also referred to as the stock exchange, it's one among the foremost vital areas of a free enterprise, it gives companies access to capital to grow their business, and investors a bit of ownership during a company with the potential to understand gains in their investment supported the company's future performance. (more…)
Penny Stocks

Penny Stocks

Penny Stocks

Penny stocks refer to stocks that belong to small companies. They are seen to be traded in the OTC market rather than on large exchanges. They are traded via electronic OTC Bulletin Board (OTCBB) or through privately owned OTC market groups. They lack liquidity and there is no trading floor for OTC transactions. They are considered to be highly speculative. (more…)
Basel III

Basel III

Basel III

What are Basel Accords? The Basel Accords alludes to a set of banking supervision guidelines by the Basel Committee on Banking Supervision (BCBS). They were created between 1980 and 2011, going through a few changes over the years. The Basel Accords were shaped with the objective of making a worldwide administrative structure for overseeing credit risk and market risk. Their main function is to guarantee that banks hold enough cash reserves to meet their monetary obligations and survive in financial trouble. They likewise plan to corporate governance. Risk management and transparency. (more…)
Closed-end mutual fund

Closed-end mutual fund

Closed-end mutual fund

A closed-end mutual fund is an equity or debt fund that issues a fixed amount of capital and then lists the shares for trading on a stock exchange. Once the offer period ends, investors cannot purchase or redeem the units. The closed-end fund ‘closes’ after the launch period until maturity.

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Money market funds

Money Market Funds

Money Market Funds

Money market funds are short-term debt funds that invest in highly liquid,  near-term instruments such as cash and cash equivalent securities, high credit rating debt-based securities with short-term maturities. These include debt funds that lend up to a period of 1 year. Money market funds are proposed so that financial advisors can generate high returns and liquidity while taking the low risk. A high loan period generally comes with higher returns. They are also referred to as market mutual funds. (more…)
Dual Listing

Dual Listing

Dual Listing

In order to increase overseas investor exposure in an expanding global financial market, often firms that are listed in their local markets also pursue a dual listing in the overseas market. This new listing may introduce an investor base to the firm which is significantly higher and therefore more familiar with the business segment of the company than its domestic market. (more…)
Quick Assets

Quick Assets

Quick Assets

Current and quick assets are two categories from the balance sheet that analysts use to examine the company’s liquidity. Quick assets refer to those assets which are owned by a company and can be converted into cash easily in a short period of time. It can also be referred to those assets which are already in the cash form. Quick assets, therefore, are considered the most liquid assets. They include cash, marketable securities, and accounts receivable. (more…)
What is Net Stable Funding Ratio

Net Stable Funding Ratio

What is the Net Stable Funding Ratio?

In the early liquidity stage of the financial crisis beginning in 2007, several banks – despite fulfilling existing capital criteria – faced problems because they could not handle their liquidity prudently. Following the collapse of several banks in 2007 and subsequent years, the Basel Committee on Banking Supervision (BCBS) adopted two liquidity requirements as part of the Basel III post-crisis reforms. (more…)
Liquidity Coverage Ratio

Liquidity Coverage Ratio (LCR)

LiquidityLiquidity Coverage Ratio (LCR)

After the global financial crisis, the prudential supervision of banks has changed drastically. Although the Basel III reforms on the quantity and quality of bank capital have been the most popular, a variety of other policy measures have also been undertaken with the goal of making banks secure and preventing potential crises.
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