Intro to Int'l Banking & Capital Markets: Institutions, Markets & Challenges, Study Guides, Projects, Research of Finance

Download Intro to Int'l Banking & Capital Markets: Institutions, Markets & Challenges and more Study Guides, Projects, Research Finance in PDF only on Docsity! STRUCTURES, SYSTEMS, CHALLENGES IBCM LECTURE 1: INTRODUCTION TO INSTITUTIONS & MARKETS IBCM LECTURE 1: INTRODUCTION TO INSTITUTIONS & MARKETS International Banking Foreign payments Holding of foreign currency Custody of non-domestic securities Organisation of trade credits & export guarantee financing Letters of Credit Documentary processing The development of financial derivatives which sought to minimise client exposure to FX and interest rate risk – futures, options, swaps and more complex products IBCM LECTURE 1: INTRODUCTION TO INSTITUTIONS & MARKETS Realising the problems How did we reach this position? Markets & market theories Trends & pointers Solutions IBCM LECTURE 1: INTRODUCTION TO INSTITUTIONS & MARKETS How did we get here? Complexity of products developed Massive leveraging by banking & market institutions Inherent, embedded conflicts of interest Risk/return and new walls between functions IBCM LECTURE 1: INTRODUCTION TO INSTITUTIONS & MARKETS The market & market theory The market as an economic system Operation & efficiency Theory & Actuality? Pursuing perfection IBCM LECTURE 1: INTRODUCTION TO INSTITUTIONS & MARKETS Have we learned some lessons? Property bubble Reckless lending Constant financial innovation Bundling of loans RESULT…… IBCM LECTURE 1: INTRODUCTION TO INSTITUTIONS & MARKETS Decline in GDP growth Fall in currency value Massive bank losses State intervention in the banking system Collapse in commercial property values UK, US, Germany, France 2008-2009?? IBCM LECTURE 1: INTRODUCTION TO INSTITUTIONS & MARKETS NO, Sweden in 1992-1993