Finance

Since 2000, the trend in the insurance industry is greater reliance on competition and increased direction towards developing prudential regulation that encourages effective self-regulation of insurance firms following certain guidelines (OECD, 1998). Under this condition, competition requires insurance firms to effectively control risks as incentive to gaining more clients and investors and as part of accountability to existing customers and shareholders (Hubbard, 2009). Better risk management...

Apart from planning, monitoring daily operations and handling marketing programs, firms also allocate a significant amount of time on policy creation and decision making based on the results of their financial Planning. Specific Financial models or templates are being utilized to assess the current financial position of the firm. All these available models have become valuable tools for every company in any industry. A firm who does not apply any type of financial model, will have a hard time on...

1. What are the economic functions financial intermediaries perform Financial intermediaries for instance commercial banks, brokerage firms, and credit unions borrow money from savers and lend it to individuals who need to invest. This is in form of loans or government securities. Thus they transform financial assets via various economic functions which include provision of maturity intermediation and payment mechanisms, reducing risks through diversification, and reduction of contracting and information...

Question 1 (a) What are the main issues an entrepreneur ought to consider when deciding whether to take hisher company public and make an initial public offering (IPO) Answer1 Going public is when an entrepreneur sells of the ownership of His or Her company on the public market say a stock exchange. Selling shares of a company in an initial public offering (IPO) is an elaborate process that takes considerable months of planning.  After entrepreneurs sell their shares, they no longer work for...

Liquidity Risk is one of the most substantial and potential threat for bank across the globe. Liquidity crises arise when the liquid asset becomes insufficient in fulfilling its responsibilities and obligations and results in inevitable losses for bank. Due to this significance of liquidity risks and crises, liquidity risk management is one of the most important considerations in banking and financial institutions around the world. Conventional Banks utilize and involve a number of early warning...