COVER STORY

Freddie and Fannie Bailout : Record of Sorts -- D Satish

The US Treasury placing Freddie Mac and Fannie Mae under conservatorship may save the US government from the moral hazard but it may eventually end up in shelling out a whopping $100 bn to protect these troubled enterprises. This is seen as the biggest US government bailout of a private sector entity in nearly half a century.

© 2008 The Icfai University Press. All Rights Reserved

PRODUCTS

Currency Futures in India : Issues and Opportunities -- Ashish Srivastava

The potential gains from the currency futures emanate from the better risk management, improved price discovery and lower transaction costs, as also the information which the market gives to the policy-makers and the signals they transmit through these markets. Currency futures with a retail focus have the potential to help corporates and banks to hedge their earnings against any unexpected volatility in the exchange rate by making well-informed decisions.

© 2008 The Icfai University Press. All Rights Reserved

PRODUCTS

Reverse Mortgage : Life Line for Senior Citizens -- P Sreelakshmi

The concept of reverse mortgage is new to India. In the UK, it came into existence in 1929. In the US, it was introduced in 1980s and gained popularity tremendously. Over 350000 Americans have already benefited from it.

© 2008 The Icfai University Press. All Rights Reserved

INVESTMENT BANKING

The Fall of Lehman Brothers -- C Krishna Priya and B Venkata Deepika

The collapse of the Wall Street giant—Lehman Brothers—is a big blow to the US as well as world economies. The behemoth, which was in a swing with $47 bn market cap a year ago, collapsed because of the denial of aid by the Fed Reserve. Certainly, the tumbling highlights the industry's unwillingness and inability to save the sick from the crisis.

© 2008 The Icfai University Press. All Rights Reserved

REGULATION

Governance of Co-operative Banks -- T N Ramakumar

The Task Force on Revival of Co-operative Credit Institutions, popularly called the Vaidyanathan Committee, submitted its report a few years ago and many of its recommendations have been accepted partially/in toto by the government/RBI. The purpose of this article is to take a walk down the memory lane and also to see where the banking system stands today.

© 2008 The Icfai University Press. All Rights Reserved

REGULATION

Reforms in the Banking Sector : A Global Perspective -- A K Sohani

This article specifically discusses the reasons, significance, measures and the implementation of the reforms in the banking sector. To be part of this developmental process, which is sweeping across the world economies, financial sector reforms are an answer. It also discusses the contributions of international bodies like the World Bank, Basel Committee on Banking Supervision , etc., that have bearings on the financial sector reforms.

© 2008 The Icfai University Press. All Rights Reserved

REGULATION

Should Banks Outsource Risk Management Functions in Order to be Basel II-Compliant? -- S K Bagchi

Basel II demands a huge skill base of officials for undertaking contemporary risk management requirements. Banks that implement Basel II will have the benefit of lower capital charge. Indian banks may consider outsourcing some of the risk management functions for better results. It provides them with the cutting edge to face the international competition successfully and profitably.

© 2008 The Icfai University Press. All Rights Reserved

MERGERS AND ACQUISITIONS

Mergers and Acquisitions in Indian Banking Industry : A Source of Competitive Advantage -- Awadhesh Kr Tiwari

The banking industry has transformed itself from a sluggish business entity to a dynamic industry. In the last two decades, the Indian banking sector has grown at an astonishing pace, marked by several paradigm shifts. And now, mergers and acquisitions have added a new dimension to the Indian banking industry. They will enable banks to achieve world class status and give more value to all the stakeholders.

© 2008 The Icfai University Press. All Rights Reserved

MERGERS AND ACQUISITIONS

Commerzbank Acquisition of Dresdner -- Rajib Kumar Das

The acquisition of Dresdner Bank by Commerzbank is expected to create complementary businesses as well as provide an opportunity to cross-sell products. It may also trigger a long overdue consolidation in the German banking sector.

© 2008 The Icfai University Press. All Rights Reserved

STRATEGY

Towards Sound and Strong Banking -- Rajendra Singh

Value-based banking involves safe and sound banking practices, better HR policies, superior corporate governance and adoption of international best practices, besides compliance with a good code of ethics. Bankers need to prepare a vision document on value-based banking for future use.

© 2008 The Icfai University Press. All Rights Reserved

INCLUSIVE BANKING

Financial Inclusion -- Prof. Kishore C Padhy

Financial inclusion is the delivery of financial services by the financial system at an affordable cost to the disadvantaged and low income groups. Over 12 crore households are not touched by banks. Inclusion, from every aspect, is beneficial to the bank, people and state. The article discusses the international experience and Indian initiatives regarding financial inclusion, outlining the agenda ahead to touch the people at the bottom of the pyramid.

© 2008 The Icfai University Press. All Rights Reserved

CASE STUDY

A Comparative Study of Wealth Management Services of Various Banks in Rajasthan -- Prof. Sumeet Gupta

The present case deals with the study of wealth management services, its products and services provided by various banks through which a comparison can be made

© 2008 The Icfai University Press. All Rights Reserved