Investigate the financial innovations

Assignment Help Finance Basics
Reference no: EM131628243

The author wants to investigate the financial innovations that are produced in Conventional and Islamic banking to know which banking sector is providing better financial innovations without exposing the economy into a new financial crisis, and if their financial innovations are driven by regulatory avoidance or not. To make the comparison more realistic, the author will approach a bank that operates under Islamic and Conventional Banking. The main research questions to be addressed are:

1. Which banking sector (Conventional and Islamic) has higher risk appetite, and what precautions they follow?

2. What is the profit ratio from financial innovations in Conventional and Islamic banking?

3. Which banking sector provide a riskier financial innovation?

The author wants to study the effect of different variables such as: regulations, market risk, liquidity risk, and credit risk to know their influence on risk appetite, and how they affect the income from financial innovation. Moreover, the author will be able to know if both sectors (Islamic and Conventional) react in the same way to any change in these variables.

The outcome of this research will inform the practice of Islamic banking to identify financial innovations that have lack of transparency or driven by regulatory avoidance in order to avoid future financial crisis and to have a steady economy with lower risk and better return, which will generate a stronger economy.

Reference no: EM131628243

Questions Cloud

Balloon angioplasty to treat heart blockages : To offer a substitute for a balloon angioplasty to treat heart blockages, the experimental laser was developed at a cost of $250,000.
Discuss historical developments of your healthcare : Discuss historical developments of your healthcare reform issue (how did it become an issue and where does the issue stand today?).
What is the overhead for each department : Oxford Floral allocated overhead of $7,815 by floor space. What is the overhead for each department? Floor space: fresh flowers, 1,000 square feet.
Wealth maximization and stakeholder wealth maximization : Discuss the similarities and differences between shareholder wealth maximization and stakeholder wealth maximization.
Investigate the financial innovations : The author wants to investigate the financial innovations that are produced in Conventional and Islamic banking to know which banking sector
Solve problem related to rutledge equipment company : Rutledge Equipment Company had net sales of $335,000. The beginning inventory at retail was $122,000 and the ending inventory at retail was $155,000.
Define the doctor patient relationship ensues : The doctor patient relationship ensues. The patient suffers an embarassing event at the hands of the doctor who touches the patient
Assess common health care leadership issues : Assess common health care leadership issues (e.g., organizational climate, teamwork, coaching, and so on) and their impact on stakeholders.
Date of the end of the term of the investment : If she made the deposit on February 25, determine (a) the date of the end of the term of the investment, and (b) the ordinary interest Sarai will earn.

Reviews

Write a Review

Finance Basics Questions & Answers

  Provide an overview of the transactions completed

Provide an overview of the transactions completed and Provide an overview of the financial reports generated

  In what way can real estate developers take benefit of the

discussion questionsquestion 1.in what way can real estate developers take advantage of the market for affordable

  American call option on a non-dividend-paying stock

Consider a six-month American call option on a non-dividend-paying stock. The stock price is $30, the strike price is $29, and the continuously compounded risk-free interest rate is 6% per annum. The volatility of the stock price is 20% per annum...

  What is the dividend yield

The next dividend payment by Blue Cheese, Inc., will be $1.56 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. The stock currently sells for $29 per share.

  Determine whether this intervention has been effective

For each design, discuss the possible threats to internal validity, as well as the ways in which the design could be patched up to provide more conclusive evidence.

  What is the intrinsic value of one contract size of swiss

Suppose the current spot rate for the Swiss Franc is $0.5925. The premium on a call option with an exercise price of $0.5675 is $0.0373. What is the intrinsic value of one contract size of Swiss Franc 62,500 call option?

  Compute the overhead rate for each cost driver

a. Compute the overhead rate for each cost driver. b. An order for 50 ceramic teapots had the following requirements: How much overhead would be assigned to this order?

  What lessons were learned from the financial crisis

What Lessons were learned from the Financial Crisis - Should GE continue to increase its dividend or pursue non financial acquisitions and was the financial crisis a "blessing in disguise" for GE?1-Computing Liquidity Ratios

  What is the firm income tax liability

ABC company had a taxable income of $588,645 from operations after all operating costs but before interest charges of $58,760, dividends received of $56,349, dividends paid of $10,000, and income taxes. What is the firm's income tax liability?

  Should the company lease the equipments

The companies marginal tax rate is 33%. If the before tax borrowing rate for the company is 12%.

  Calculate the best-case and worst-case npv figures

Calculate the best-case and worst-case NPV figures. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

  Financial needs after retirement

Financial needs after her retirement?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd