scholarly journals Pricing analysis of stock index linked structured financial products of Commercial Banks

2019 ◽  
Vol 677 ◽  
pp. 042045
Author(s):  
Mengzhen Li
Keyword(s):  
Commercial Banks ◽  
Stock Index ◽  
Financial Products ◽  
Structured Financial Products

Structured Finance and the Social Contract: How Tranching Challenges Contractualist Approaches to Financial Risk

2018 ◽  
Vol 29 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Tobey Scharding
Keyword(s):  
Financial Risk ◽  
Contract Theory ◽  
Third Parties ◽  
Individual Risk ◽  
Collateralized Debt Obligations ◽  
Structured Finance ◽  
Financial Products ◽  
Systemic Risks ◽  
Collateralized Debt ◽  
Structured Financial Products

ABSTRACT:Many ethicists argue that contract theory offers the most promising strategy for regulating risks. I challenge the adequacy of the contractualist approach for evaluating the complicated, novel risks associated with some structured financial products, particularly focusing on risks to third parties. Structured financial products like collateralized debt obligations (CDOs) divide a pool of financial assets into risk “tranches” organized from least to most risky. Investors purchase various tranches based on their individual risk-and-return preferences. Whereas contract theory holds that investment risks are ethically permitted (roughly) when everyone—including both parties directly involved in the investments and third parties—consents to them, structured financial products like CDOs show that even risks to which everyone consents are ethically problematic when they involve systemic risks of ruin.

What is your desire? Retail investor preferences in structured products

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rainer Baule ◽  
Patrick Muenchhalfen
Keyword(s):  
Design Methodology ◽  
Recent Literature ◽  
Product Structure ◽  
Content Type ◽  
Financial Products ◽  
Retail Investors ◽  
Retail Investor ◽  
Retail Products ◽  
Structured Financial Products ◽  
Insight Into

PurposeThe authors evaluate the preferences of retail investors with regard to the investment in structured financial products. The purpose of the paper is an analysis of the relative importance of key product attributes namely the issuing bank, the product structure, the associated costs and the disclosed risk.Design/methodology/approachThe authors conduct a choice-based conjoint analysis, based on an online experiment. Participants judge their preferences for products which are presented by shortened key information documents according to the requirements of EU regulation.FindingsInvestors consider the costs and the product structure to be most important, whereas the issuer and information on risk are of less interest. Their preferences depend on their (self-evaluated) expertise: while inexperienced retail investors concentrate on costs, experienced investors pay more attention to the product structure.Research limitations/implicationsThe study is limited to a subsegment of the market, the discount certificates. For these products, issuing banks gain insight into the attractiveness of their products. Furthermore, the study carries implications for regulators: since investors emphasize the costs in their decisions, an unbiased disclosure of costs should be enforced.Originality/valueWhile the recent literature has studied preferences for the investment in mutual funds, this is the first paper which directly analyzes the drivers of an investment in structured retail products.

scholarly journals The Impact of Business Scale of “Shadow Banking” on Credit Risk of Commercial Banks --Take Ten Domestic Listed Commercial Banks as Examples

2017 ◽  
Vol 9 (5) ◽  
pp. 94 ◽  
Author(s):  
Sijia Wen ◽  
Jishan Ma ◽  
Yawen Pan ◽  
Yuan Qi ◽  
Ruizhi Xiong
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Balance Sheet ◽  
Commercial Banking ◽  
Shadow Banking ◽  
Financial Products ◽  
Banking Business ◽  
The Government ◽  
Definition Of ◽  
The Impact

In this article, according to search for the definition of shadow banking, we can make sure the business kinds of “shadow banking”, discuss the influence of business in “shadow banking” on credit risk of commercial banks, and study the elements which may increase the credit risk of commercial banks by using the semi-annual panel data during 2011-2016 of 10 listed banks. Then we can come to some primary conclusions: The credit risk of commercial banks is related to the shadow banking business. All the survival scale increment of financial products increasing, the size of entrusted loans increasing in increment, and the increasing in the size of guarantee commitments will increase the credit risk of commercial banks. There is no obvious relationship between trust loan business and bank credit risk. Our study is of great significance for the government to supervise the off-balance-sheet business of commercial banks. At the same time, it also fills the vacancy of domestic commercial banking “shadow banking” business empirical research.

TOOLS OR SYSTEMS FOR IMPROVING ACCESSIBILITY TO FINANCIAL PRODUCTS AND SERVICES.

2017 ◽  
Vol 2 (4) ◽  
pp. 17
Author(s):  
Michael Njeru Njue ◽  
Marion Mbogo
Keyword(s):  
Small Businesses ◽  
Commercial Banks ◽  
Credit Scoring ◽  
Financial Education ◽  
Target Population ◽  
Survey Study ◽  
Sampling Frame ◽  
Access To Credit ◽  
Financial Products ◽  
Negative Effect

Purpose: The purpose of this study was to highlight the need for banks to develop financial products and services for small and medium enterprises.Methodology:The research design was descriptive survey study. The target population was 46 commercial banks .The sampling frame was the list of commercial banks given at the Central bank of Kenya Website. A sample of 17 banks was selected using random sampling. The second stage of sampling involved the selection of the respondents using a stratified sampling approach. The strata were the various departments that interact with SMEs in a bank. The respondents were the head of departments of the respective departments that form the strata. Both qualitative and quantitative data was collected using a questionnaire that consisted of both open ended and close ended questions. Data was analyzed using Statistical Package for Social Sciences (SPSS.Results: One of the study objectives was to establish the level of access to financial products and services offered by the banks to SMEs. Results from the bank manager’s perspective indicated that the level of access to finance was high, but the bank clients indicated otherwise, that it was low. The other objective of the study was to determine the factors that hinder the SMEs from accessing the financial products offered by banks. Results indicated that several factors influence access of SMEs to finance. These factors include gender, level of education, size of the business, age of the entrepreneur, collateral, and level of income for the entrepreneurs. All the factors had a negative effect on the access of finances from the banks by SMEs and hence indicate SMEs low access to financial products. Another objective of the study was to establish the tools or systems required to improve accessibility to financial products offered. Results indicated that there are tools and systems put in place by banks to improve accessibility to financial products offered to small and medium enterprises.Unique contribution to theory, practice and policy:The study recommended that training be emphasized to SME entrepreneurs on financial matters, all gender to be treated equally, the banks to introduce financial education programs for SMEs to improve their access to credit, banks to further make use of a credit scoring system to assess the credit worthiness of small businesses and to introduce the use of new credit bureau regulations to increase SME finances.

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