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How do mergers affect communities?A: While a locally controlled bank is merged into a bank headquartered somewhere else (an out-of-market merger), a few apprehension about the institution's future commitment to the local community is bound to result. Though, because such mergers usually are motivated by a bank's desire to gain access to a new market, commitment to the community frequently is actually enhanced. Banks, aware that merger transactions focus public awareness on their role in the community, often demonstrate their commitment instantly through greater lending activity. Banking regulators monitor both the statements of commitment that are made by institutions at the time of a merger or acquisition, also banks' performance under the Community Reinvestment Act, which needs banks to serve all parts of the community.
Discuss and compare hedging transaction exposure by using the forward contract vs. money market instruments. While do the alternative hedging approaches generate similar result?
Q. What is Unsanctioned Expenditure? The expenditure, which is regularly incurred without the sanction of the competent authority or beyond the sanctioned limit of funds provid
State the Significance of the Cost of Capital It must be recognized at the outset that cost of capital is one of the most difficult and disputed topics in the finance theory.
Loans from the financial institutions: Financial institutions such as the commercial bank life insurance corporation, industries financial development corporation bank of the
What are agency problems? and between what two stakeholders do agency problem typically occur?
There are several methods available to forecast yield volatility. But before that, let us look into the calculation of forecasted standard deviation. Assume th
how does "x" company hegde itself? the company name will be shared later.
Define the term- Cost of capital Cost of capital is the rate of return a firm should earn on its investments for the market value of the firm to remain unchanged. Acceptance of
There are two ways to estimate yield volatility - historical volatility and implied volatility. Thus far we have discussed how to calculate volatility by estimati
We can measure the portfolio duration by calculating the weighted average of the duration of the bonds in the portfolio. The proportion of the portfolio that a se
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