LIBOR has been an endangered species for some time now. LIBOR, the rate that banks charge each other to borrow money, is slated to go by the wayside in 2021 and taking its place for USD will be something called the Secured overnight financing rate, or SOFR. Almost every part of the financial world is touched by LIBOR; it is plausibly the world's most important number.
Mary, a Dublin bar owner who offers "drink now, pay later" scheme, sees her sales boom, leading her local bank to increase her borrowing limit. The bank transforms these customer loans into securities, selling them to unaware investors. This leads to massive profits until the bank demands payment, resulting in Mary's bankruptcy and subsequent closure of the bar. The securities devalue, freezing economic activity and leading to job losses. Despite the economic struggles, the bank, brokers and executives are bailed out by the government, funded by non-drinkers' taxes. The story illustrates similarities with the 2007-08 economic crisis.
Digitalization and digitization, while often used interchangeably, refer to different concepts: the former represents the use of digital technologies to change a business, while the latter designates the transition from analog to digital forms. The banking sector exemplifies a field facing a shift towards pervasive digitalization, facilitating branchless banking and providing enhanced customer services. However, challenges such as regulatory restrictions and digital skill gaps persist. This digital transformation in banking is seen both as a challenge and an opportunity for future growth.
In today's digital era, easy access to information and constant connectivity through smartphones blurs the line between work and personal life. France's "right to disconnect" law aims to address this issue, but implementing similar laws in developing countries faces challenges. Research shows the impact of email on well-being and productivity, emphasizing the need for balance in digital work culture.
Logical ATM attacks have become a major concern for financial institutions worldwide, as hackers exploit vulnerabilities in bank networks to remotely manipulate ATMs and steal millions. These covert attacks underscore the evolving threat landscape of cybercrime and the need for robust cybersecurity measures, collaboration, and vigilance to safeguard the integrity of global banking systems.
Public sector bank employees in India went on strike, impacting the services of approximately 80,000 bank branches. The strike was in response to potential consolidation of public sector banks through mergers. This follows a previous merger in 1993, when the New Bank of India merged with Punjab National Bank. Further consolidation has been announced in recent budgets, with the goal of reducing the number of public sector banks from 27 to between eight and ten. Nonetheless, concerns regarding the levels of non-performing assets at these banks have led some to question the timing of these consolidations.
A sensible prediction on a seemingly obvious outcome on how the markets would react following the British referendum on European Union membership by 36-year-old hedge fund manager James Hanbury has resulted in a vast win of £110 million ($148 million).
In 1648, the Dutch water authority issued a bond to fund dyke reconstruction, a crucial measure for flood-prone Netherlands. Yale University now holds the bond, earning annual interest of 11.34 euros. Recently, Yale discovered and collected 136.20 euros in back interest, showcasing the enduring nature of financial commitments and historical continuity.
Indrajit Roy Choudhury 