... presentation o k option pricing models, in particular, the famous Black and Scholes formula. Section V tries to apply the Black and ... versatile, can be arbitrary structures, endless; five, sound and lighting. Name: Air Case Name: folding stage name: the name ...
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Microfinance is a relatively new field of finance in which savings, insurance, microcredit loans, and other financial services are aimed at low-income individuals. Specifically, microcredit loans are small loans which are taken by borrowers with no credit and no collateral. By paying back small loans, borrowers are able to build a credit history and acquire more assets. More importantly, borrowers use their loans to establish businesses which ensure financial stability in the future.
The founder of microcredit, Dr. Muhammad Yunus, was a professor of economics at Chittagong University in Bangladesh when he established Grameen Bank in 1977. By lending small amounts of money to rural farmers and small-business owners in his community and requiring repayment in weekly installments, Yunus created a system that greatly interrupted the cycle of poverty in rural Bangladesh. Soon, his program had spread to the other regions of Bangladesh, and similar programs were being founded all over the world, all modeled after Grameen Bank. The Center for Agriculture and Rural Development (CARD) Bank of the Philippines is one such program.
The following article endeavors to present a portrayal of Julius Caesar different from the character built by William Shakespeare in his famous tragedy. In place of drawing a full-scale comparison between the play and the ancient documentation the article rather describes the character and behavior of Julius Caesar from several angels; namely, Caesar the man, his historical figure, and his image.
Within the Internal Ratings-Based (IRB) approach of Basel II it is assumed that idiosyncratic risk has been fully diversified away. The impact of undiversified idiosyncratic risk on portfolio Value-at-Risk can be quantified via a granularity adjustment (GA). We provide an analytic formula for the GA in an extended single-factor Credit Risk setting incorporating double default effects. It accounts for guarantees and their effect of reducing credit risk in the portfolio. Our general GA very well suits for application under Pillar 2 of Basel II as the data inputs are drawn from quantities already required for the calculation of IRB capital charges.
In the portfolio risk-factor frameworks that underpin both industry models of credit Value-at-Risk (VaR) and the Internal Ratings-Based (IRB) risk weights of Basel II, credit risk in a portfolio arises from two sources, systematic and idiosyn cratic. Idiosyncratic risk represents the effects of risks that are particular to individual borrowers. Under the Asymptotic Single Risk Factor (ASRF) framework on which the IRB approach is based, it is assumed that bank portfolios are perfectly fine-grained in the sense that the largest individual exposures account for an infinitely small share of total portfolio exposure. In such a portfolio idiosyncratic risk is fully diversified away, so that economic capital depends only on systematic risk. Real-world portfolios are not, of course, perfectly fine-grained. The asymptotic assumption might be approximately valid for some of the largest bank portfolios, but clearly would be much less satisfactory for portfolios of smaller or more specialized institutions. When there are material name concentrations, there will be a residual of undiversified idiosyncratic risk in the portfolio. The IRB formula omits the contribution of this residual to the required economic capital.
