Credit default swaps (CDSs): an effective tool to manage credit risk of Indian banks

Tabassum, None; Yameen, Mohammad

doi:10.1108/jmb-03-2022-0012

Cited by 5 publications

(6 citation statements)

References 22 publications

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“…Nonetheless, it is widely acknowledged that CDS as a field of study has yet to attain maturity regardless of being the core of researchers’ interest in literature. The research in developing countries on CDS is still in its infancy (Tabassum & Yameen, 2022). A lack of access to published data abstains scholars to perform influential research.…”

Section: Discussionmentioning

confidence: 99%

“…Recently, the regulators of Reserve Bank of India (RBI) reviewed the present guidelines to provide a fillip to the adolescent credit derivatives market in India. In 2021, the RBI provided directives for Indian banks to undertake purchasing and selling of CDS (Tabassum & Yameen, 2022). With a significant step, China has newly introduced an index of single‐name CDS and named it Dow Jones iTraxx Greater China CDS index in order to assess and give attention to the market‐wide credit protection (selling and buying of risk) in the area of Greater China, that is, Mainland China with Hong Kong and Taiwan (Byström, 2008).…”

Section: The Characteristics and Development Of Cdsmentioning

confidence: 99%

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Why do banks use credit default swaps (CDS)? A systematic review

Tabassum

Yameen

2023

Journal of Economic Surveys

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Credit default swaps (CDS)—the fiercely discussed derivatives instrument since the explosion of the recent global credit crunch—are still subject to considerable theoretical and practical debate. More than a decade after significant developments in CDS literature, we currently lack a holistic understanding of the disparate strands of evidence, synthesizing analytical advancements in the field. We, therefore, conducted a systematic review of 143 publications (peer‐reviewed and first‐tier grey literature), focusing on three key areas: CDS characteristics and development, credit risk hedging, and determinants of CDS use, and performed the first bibliometric mapping for CDS. Our review makes the following contributions. First, measuring CDS characteristics and development gives a snapshot of how CDS remained a significant indicator for hedging corporate lending risk. Second, by mapping the research landscape, we provide insights into banks’ use of CDS; in particular, we show that banks use CDS to obtain capital relief, enhance liquidity and profitability, limit credit supply, and consequently mitigate their NPLs’ level. Moreover, the use of CDS by lenders increases firms’ leverage and value. Leaving a fertile area for debates and future research, the outcomes of this review help provide policy guidance to regulators and financial institutions that make informed decisions to use CDS as a credit risk management instrument.

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Section: Discussionmentioning

confidence: 99%

Section: The Characteristics and Development Of Cdsmentioning

confidence: 99%

Why do banks use credit default swaps (CDS)? A systematic review

Tabassum

Yameen

2023

Journal of Economic Surveys

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“…Being conceptual in nature, the present study is based on secondary data extracted from journals, articles, newspapers, and magazines. Considering the objectives of the study, descriptive type of research design has been adopted to have more accuracy and rigorous analysis of research study (Tabassum & Yameen, 2022) [19] . Available secondary data has been extensively used for the study.…”

Section: Methodsmentioning

confidence: 99%

Reviving India's economy through goods and services tax (GST): A conceptual study

Tabassum¹,

Islam²,

Danish³

2023

Int. J. Finance Manage. Econ.

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GST is a game changer for its far-sweeping impact on businesses and end-consumers. Manufacturers, traders and service providers across India have been placed under one unified tax umbrella. They no longer need to work with a tedious array of distinct types of taxes they were previously required to comply with. Despite many of its advantages in the current ongoing scenario, the end consumer needs to improve in price hiking in basic amenities. The bill was brought to implement one tax in the country but resulted in the most significant drawback and a deadly weapon for the poor and middlemen of the country. The current picture of GST is not as rosy as it was portrayed. The code of conduct on which GST works, i.e. One Tax, One Nation, One Market, is not fit and suitable for India as the GST regime could not attain the objective of implementing the single tax system in India. This paper will assist in showing the flaws and adverse effects of GST on the economy of India. This paper presents an overview on the problem of cascading effect of the former multistage tax structure and the basic concept of GST and its benefits as well as drawbacks.

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“…In 1999, a new Banking Act was introduced and the National Banking Authority was established to further tighten the regulation of the banking industry, and four banks merged to form Mandiri Bank, which is currently the largest bank in terms of capital and size. Yameen (2022) argues that the Indian financial market has been in need of credit risk management for a long time. There is a need for a solid mechanism to help manage its credit risk.…”

Section: Analysis Of the Current Situation Of The Banking Industry In...mentioning

confidence: 99%

Research on the Development Process and Competitiveness of Central Asian bank in Indonesia

Xu,

Choi,

Park

et al. 2023

ijmst

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This study aims to analyze the development process and current status of the Indonesian banking industry. In addition, we will investigate the founder, development process and current status of Bank Central Asia, an overseas Chinese bank that plays a central role in the Indonesian banking industry and analyze its competitiveness. Based on this analysis, we would like to propose practical implications and development strategies. Based on literature research, we will investigate the development process and current status of the Indonesian banking industry, the founders of Bank Central Asia, the development process and current status, and analyze its competitiveness. Using Porter's five forces analysis model, we want to analyze the competitiveness of Bank Central Asia. By utilizing SWOT analysis, we analyze the internal and external environment of Bank Central Asia. Bank Central Asia, although founded by overseas Chinese, is a leader in Indonesia's financial industry. Bank Central Asia has weaknesses in digital transformation, product innovation, customer experience, risk management, cooperation and innovation, but has strengths in network expansion, talent training, promotion and development system improvement. Based on this competitiveness, we have maintained a leading position in the Indonesian financial market. When formulating and executing strategies, Bank Central Asia must fully consider market trends, competitor dynamics, and changes in policies and regulations, make sound decisions, and monitor and adjust plans at any time. Bank Central Asia has maintained a good reputation and sustainable development based on external networks and internal competitiveness. A study on these overseas Chinese banks helps to understand the Southeast Asian economy.

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Credit default swaps (CDSs): an effective tool to manage credit risk of Indian banks

Cited by 5 publications

References 22 publications

Why do banks use credit default swaps (CDS)? A systematic review

Why do banks use credit default swaps (CDS)? A systematic review

Reviving India's economy through goods and services tax (GST): A conceptual study

Research on the Development Process and Competitiveness of Central Asian bank in Indonesia

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