Provide an example of Decentralised Finance (Defi) and critically examine the effect of Defi on traditional banks and the future of financial services
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A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
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Q: recover
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- Explain the concept of “Value-at-Risk” (VAR) in the context of banks’ credit risk management. How is VAR linked to regulatory capital requirements?In finance, the term risk management involves identifying the potential risks the organization may face in the future, analyze the impact of the risk and implement measures so that either is absolved or its adverse impact is minimized. discuss how risks can be avoided in financial institutions?How do you think financial institutions help financial market to work?
- explain in detail the Bretton Woods system , and discuss its effects on the financial marketsAre there any novel ways by which some of the challenges in the financial system may be resolved in your opinion? Explain(a). Distinguish Commercial banks and Micro-Finance Institutions (MFIs) by function and objective. (b). How insolvency risk can be managed or mitigated by financial institutions
- Make an illustration on the importance of the role of Investment Banking.Why is there a need to manage risk in financial institutions?Define the Credit Risk and include in your discussion examples of the Credit Risk and why Financial Institutions are particularly susceptible to this Risk. Discuss ways to measure, manage and mitigate the Credit Risk.
- What are the major risks faced by financial institutions?Explain why Risk Management is an important role of a finance manager.In which economic conditions would a central bankwant to use a “forward-guidance” strategy? Based onyour previous answer, can we easily measure the effectsof such a strategy?