Comment on benefits and flaws of regulation as well as hypothesise main potential effects of new set of rules for banks and insurance

Q: How tools are used in insurance risk management

A: Risk Management Techniques  Techniques for coping with dangers are known as risk management…

Q: Please explain the risks the buyer of a loan participation is exposed to

A: There are many risks involved in loan and it is very risky to give loans because of default on loan…

Q: Governments should disclose their vulnerability to specific types of risks A.) Credit risks B.) Co

A: Transparency is essential for effective governance, and disclosing vulnerabilities to risks is an…

Q: ain ONE key financial risk that an insurance company is exposed to. Explain the policies and…

A: Basic Concept of Insurance Financial risk in insurance and Mitigation

Q: Explain credit risk from an individual and a loan portfolio management perspective and discuss how…

A: Washington Mutual (WaMu) was a large financial institution that collapsed in 2008 due to exposure to…

Q: Is insurance company a financial institution? Why?

A: Financial Institution:-These are those companies that are engaged in the business dealing with…

Q: What is the importance of insurance companies?

A: Insurance firms are financial middlemen that provide direct insurance or reinsurance services,…

Q: Define banker’s acceptance

A: The bill of exchange is a written document made by one person in the favor of another person for the…

Q: iscuss federal deposit insurance coverage. What is its significance?

A: Federal reserve who is authority over banks and is responsible for taking care of interest of the…

Q: A. Define interest rate risk and reinvestment risk. B. Why do banks and life insurance…

A: Risk refers to the potential losses that might be incurred by the investor from the investment made.…

Q: loan portfolio audit

A: Loan Portfolio Audit-:A Loan Portfolio Audit furnishes an organized, in-depth investigation of…

Q: How does credit risk affect insurance companies

A: Credit risks affect insurance companies in a tangible and often direct manner.

Q: Define the Credit Risk and include in your discussion examples of the Credit Risk and why Financial…

A: A large number of financial transactions take place in the financial system and each transaction…

Q: How insurance companies works?

A: Insurance companies are the type of organizations that were established in order to cover the…

Q: what is one example of a risk management strategy used by insurance companies to mitigate…

A: An underwriter's potential loss is known as underwriting risk. Underwriting risk in insurance can…

Q: Related to ethics and contracts, why do payday loans appear to be an ethical issue?

A: Payday loans are small ticket loans for a short duration. The borrower pays back the loan when he…

Q: Discuss the risk management for changing interest rates, asset-liability management and duration…

A: Asset Liability Management or ALM is a broad mechanism to address and manage the risk faced by a…

Q: how does financial risk relate to the Washington Mutual case and how can it be mitigated

A: The collapse of Washington Mutual (WaMu) in 2008 was one of the most significant bank failures in…

Q: Which credit risk management model can help to resolve Washington Mutual credit risk issues

A: Washington Mutual, one of the largest banks in the United States, experienced significant credit…

Q: discuss how a risk management tool can be used to mitigate liquidity risk and credit risk

A: The process of identifying, assessing, and controlling hazards to an organization's capital and…

Q: How does the Insurance Commission assure the investing public on the safety of the Insurance…

A: Insurance Commission is an amount paid to the broker or agent of insurance products for selling the…

Q: ses of the following: • Commercial Banks • Insurance Companies • Pension Fu

A: Commercial banks provide basic financial facilities to public such as accepting deposits, granting…

Q: warning signs associated with development of problem loan

A: Problem loan means lender is not able to recover the principal and interest from borrower & is…

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.