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In terms of sequence of events, seems so! Dodd-Frank Wall Street Reform and Consumer Protection Act, dates July 21, 2010 To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘‘too big to fail’’, to protect the American taxpayer by ending bailouts, to protect consumersContinue reading “Was Dodd- Frank Act: A Cart Before the Horse?”

Additional info: Is there a page limit? No. Is it to be quantitative or qualitative? Please underline ‘measurement’. It is to be quantitative. It is about how bank safety has been quantified? It is about how bank soundness has been quantified?, over years, in the USA. Please know that what is termed qualitative, may alsoContinue reading “Banking Research Award, 2020- Additional Info”

Center for Safe and Sound Banking Invites participation in Research Award Competition, 2020 Research Question: How has measurement of Safety and Soundness of Banks evolved in USA over 100 years (1919- 2019)? 1st Prize: $1000 2nd Prize: $500 Last Date of Submission: July 07, 2020 Award Announcement: September 07, 2020 Please send your submissions orContinue reading “Center for Safe and Sound Banking Research Award Competition, 2020”

The United States of America’s Federal Reserve System (aka Fed) was created in 1913. The mandate given to it, as per the Federal Reserve Act, 1913, as amended up to date, is as follows: The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth ofContinue reading “COVID-19: Fed’s Circular Monetary Policy”

Every country of the world aims high GDP and employment. A comparison of four countries, paired by population, shows that, in a sense, credit goes to credit. Please see numbers, as of 2017, as below: USA Indonesia Population (Millions) (2018) 329 263 GDP- PPP ($, Trillions) 19.19 3.25 Domestic Credit ($, Trillons) 21.6 0.4 UnemploymentContinue reading “The Credit goes to Credit!”

Could you guess a country with 4 biggest banks of the world and the largest unbanked population? It is China. The top 4 banks, by size, of the world are Chinese banks, as of 2019; and China has been the country with the largest unbanked population, 13% of its population, as of 2017. Does itContinue reading “A Country with the Biggest Banks & the Largest Unbanked Population”

The foundation on which ships are built is called the keel of the ship. What is the keel of the safe and sound banking? In my opinion, it is the capacity and capability of a bank to keep its door opened under all conditions. So what are the parameters/ indicators/ measures of capacity and capabilityContinue reading “In Search of the Keel of Safe and Sound Banking”

The downward or flat yield curve is seen as a predictor of recession. Here are yield curves of top economies of the world. How far, how near is next global crisis? Not so near! Chart Source:https://secure.fundsupermart.com/fsm/bonds/yield-curve

Please review these two sets of country comparative numbers. Do you see positive correlation between monetary and fiscal policy numbers, like Money Supply, Domestic Credit and Deficit Financing, and the economic numbers like GDP, Inflation and unemployment? Lesson: Inject money to grow your economy. USA Indonesia Population (Millions) (2018) 329 263 GDP- PPP ($, Trillions)Continue reading “The Money Supply, Credit, and Deficit Financing Playout”

Banking started with money lending, years ago. But over years, it has continuously changed and evolved by benchmarking. It first benchmarked itself to transportation companies. It started moving money quick and faster. It then benchmarked to hospitality companies, providing welcoming interior and environment at bank branches. It then introduced drive- through of McDonald and CVS,Continue reading “Smart Benchmarking: I have to outrun you my friend!”