Key Risks Financial services include commercial banking, securities, investment services and insurance. These functions have been traditionally regulated, given their importance to the functioning of the economy and for consumer protection. A financial services business carries the risk of insolvency. Insolvency risk is said to be made up of a number of elements, including credit risk (risk of non-payment by customers and counterparties), market risk […]
BIS The Bank for International Settlements was established in 1930. It acts as the bank for the world’s central banks. It promotes international monetary corporation. It acts as an agent for international settlement. The BIS holds between 10 and 15 per cent of the world’s monetary reserves. It is incorporated under Swiss Law. Since 2001, ownership of shares in the BIS has been limited to […]
Nature of Investment Investment in this context is generally said to involve the taking of a share of at least 10 percent in the controlling shares of a foreign enterprise. Some states do not allow foreign investments at all. It is generally a characteristic of socialist or developing states. In such cases, participation in investment within the state may require a joint venture with a […]
Scope States regulate securities. Each state regulates its own securities law. Securities laws have converged substantially due to a variety of factors in the last thirty years. Securities are shares, rights, tradable debt or other investment interest in enterprises or other assets. They may represent a debt, such as in the case of a bond or debt security or equity interest in the case of […]
Money Money is anything which is customarily used as a medium of exchange and measure of value. Classically, money has the characteristics of being a medium for storing value over time, a unit or measure of value and a means of exchange. Money can be any stock or valuable commodity which is transferable and capable of being used as a means of exchange. Money is […]
Nature Payment is the unconditional transfer of money. It may be physical cash or, more likely, by the way of credit to a bank account. Obligations under a contract are commonly fulfilled and extinguished by payment. Payment may take place by delivery of currency notes, whether coins or bank notes, that are legal tender of the currency required under the contract. Payment through bank transfer […]
Terms of Borrowing Sovereigns are generally immune from enforcement in foreign courts. There are no effective solvency mechanisms against states. There is no process by which their assets may be realized and distributed to creditors. Solvent states have an inherent power to borrow subject to the terms of their own constitution. Some Constitutions may impose debt breaks and limitations. States may pass legislation to enable […]