CAMEL Analysis: Introduction The CAMEL analysis framework was made as part of the “Uniform Financial Institutions Rating System” and it is developed by three federal banking supervisors of the U.S. in the 1970s. The Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the currency developed the CAMEL system to provide … Read more
Different businesses can be at different stages of operation in a business lifecycle. Generally, there are four stages of business operation. They are: These phases of business are determined by the sales it makes over the years. All these stages have some common characteristics related to investment, sales, cost, demand and product life stages. Merger … Read more
Acquisition is one of the corporate restructuring techniques where one company (acquirer) obtains an effective control over the assets or management of another company (target) with or without any combination of companies. Thus in the acquisition, two or more companies may remain independent, separate entities but control of companies may change. Acquisition is a major … Read more
About the Crisis On October 1, 2018 market share price of Bandhan Bank dipped nearly by 21% due to the restriction by Reserve Bank of India (RBI) on Bandhan Bank regarding the expansion of its branch operation and freezing of the salary of Chief Executive Officer Chandra Shekhar Ghosh. Reserve Bank of India (RBI) took … Read more
The Efficient Market Hypothesis (EMH) is an investment theory primarily derived from concepts attributed to Eugene Fama’s research as detailed in his book “ Efficient Capital: A Review of Theory and Empirical Work” in 1970. The EMH states that share prices reflect all the relevant information and it is impossible to beat the market or … Read more
Artile by: Nitesh Kumar Gond Finance is considered as an important aspect of any business enterprise. Funds in the form of capital are required to operate a business and to plan and execute the future projects of the business. Finance and financing are required by all the enterprises on a regular basis for its growth, … Read more
Introduction Microfinance is a modern concept of financing which is focused on providing small business owners and entrepreneurs access to capital. The complex business environment and changing regulatory requirements do not allow small business owners and entrepreneurs to enjoy traditional financial resources and services from major institutions which means, it is difficult for such parties … Read more
Introduction Decision-making process is always future-oriented i.e. we consider alternatives and make choices for our future actions. All the things we consider for future decisions contain some level of uncertainty and risk. Financial decision making has also a future orientation and involves high uncertainty and such decisions are always a trade-off between risk and return. … Read more
INTRODUCTION Cooperative nature is an association with other companies to out-perform competitors. There are two cooperative strategies; Collusion and Strategic Alliances. Collusion It is the active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand. Collusion may be explicit, … Read more
Introduction Credit Rating can be simply defined as a data backed up opinion of rating agency which reflects the ability and willingness of the manager of debt instruments to fulfill its debt obligation when required. In simple terms, credit ratings rank the issuer and debt instruments on the basis of their ability to fulfill the … Read more