Introduction A commodity exchange is an organized, regulated market that facilitates the purchase and sale of contracts whose values are tied to the price of commodities[1]. On a commodity exchange, the buyers of contracts agree to accept delivery of the commodity whilst the sellers agree to deliver the commodity. The contracts traded are standardized and... Continue Reading →
Background The third publication of Absa Africa Financial Markets Index (formerly Barclays Group Africa Financial Markets Index) has been released and it is worthwhile reviewing how Ghana’s financial market has fared since the index was first published in 2017. The Absa Africa Financial Markets Index presents an essential tool kit for evaluating the development of... Continue Reading →
Governor Ernest Addison lived up to his speech at the Annual Dinner of the Chartered Institute of Bankers, Ghana on 2ndDecember 2017. The sector reform laced speech projected 2018 as a busy year in the banking history of Ghana. Undoubtedly, the second year of the current administration has indeed gone down as the busiest and... Continue Reading →
Financial institutions remain key agents in promoting and maintaining national, regional and global economic stability. As such the failure of banks and other players in financial intermediation should be averted as much as possible to limit contagion i.e. systemic risk in the financial space. When do financial institutions fail?This happens when such institutions are unable to... Continue Reading →
Businesses take risks in their value creation processes. Taking these risks result in upward potentials (rewards) and downward dangers (losses) that have to be monitored and mitigated. Risks essential for the firm to remain in business are inherent and inseparable in their operations. Oversight responsibility to ensure that firms to do not engage in excessive risk... Continue Reading →
For about half a decade Greece has been covered extensively in both print and electronic media for its near default on external debts. It is increasingly becoming a norm to reference the situation that the Greeks find themselves in as the destination headed by Ghana considering the rate of debt pile of the our government.... Continue Reading →
Given the very high debt to GDP burden of Greece and its very weak economy, the recession-crippled country is on the brink of collapse. The sovereign country cannot honour its maturing debt obligations and face huge liquidity challenges. The situation reminisces of the African and Latin American debt crisis of the 1980s and 1990s followed... Continue Reading →
Credit Portfolio Management The philosophy underlying modern portfolio management is anchored in diversification. Lending institutions and investors in general become exposed to greater financial risk when their risk assets become concentrated in specific industries, economic sectors or subsectors and geopolitical locations. Failure of such economic sectors, underperformance of industries and geopolitical instabilities will trigger broader systemic... Continue Reading →
Introduction The Medici Bank (Banco Medici) formed and run by the Medici family of Italy in the 15thcentury until its liquidation in 1494 was highly reputed in Europe. The collapse of this financial institution made it a foremost corporate insolvency case in history. Its failure was largely ascribed to the family’s excessive spending and extravagant... Continue Reading →
“Africa Arise” Africa abounding in natural resources should not be at the deficit side of the equation in the natural scheme of things. Precious metals abound in the belly of the continent while its fields yield all manner of soft commodities. As a continent, Africa produces more than half the worlds diamond and about three quarters... Continue Reading →
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