One of the current concerns for the Indian Banks is the capital required to meet the Basel III requirement. It is made worse by the ever increasing of non-performing assets, which is eating away their capital. While a meaningful analysis is called for as to how and why this has happened and its possible consequences,…

Today in the financial world, it is becoming more and more complex to draw the dividing line between risk and uncertainty. To familiarize, risk is an outcome of an event which is likely to happen with a probability which is not difficult to observe or calculate. Uncertainty is outcome an event where in the first…

According to a senior banking analyst in China and I quote “China needs trillions of dollars to tackle bad debt burden which is dragging down the economy”. China has become a highly leveraged country with excessively built in capacity. These are harder to put to use in the short-run. Besides the overall economy is slowing…

An example of building an algorithm for trading: Gold. Among all the commodities that are traded both Gold and Crude oil fascinated me. So since I trade them I thought it would be interesting to share my knowledge and experience with you. The reasons for selection of these commodities are as follow,   Gold and…

This is an ongoing conversation between the student and his professor. Student:         Now I am keen to know about the impact of the US Federal Reserve on the Indian economy.   Professor:       This indeed is a very complex and important question. The open market committee reports can be broadly categorized in to the…

Sitting in a class room in India and wondering as to why one should be concerned about the role of US Federal Reserve is the purpose of these two blogs. These blogs are to help the readers to understand the role of US Fed and as to how and why they are relevant to the…