The increasing importance of the banking sector in Botswana cannot be emphasised more than the fact that it is one of the strongest sectors providing developmental support to the rest of the economy. The sector has shown considerable growth since the 1990s when Bank of Botswana started allowing...

The international banking system plays a major role in the economic success of many countries around the world- hence it is important that it retains sustainable growth. On the other hand, risks are threats and barriers to the development of international banking. Similarly, banking risks are...

The year 2008 was marked by massive failures and collapse of investment institutions in the USA- revealing flaws in the banking system that required a complete overhaul. In the same year, one of the largest investment firms in the world, the Lehman Brothers, filed for Section 11 bankruptcy...

This paper limits itself to the examination of the necessity of Basel III and its abilities in bringing about prudent risk management among banks and other financial institutions. The paper gives an overview of the Basel III framework and its efforts towards improving risk management...

The debate on the merits and demerits of separating commercial and investment banking has picked steam in the aftermath of the global financial crisis. However, various countries have different legislation regulating banking activities. Whereas some countries prefer to separate commercial and...

This research explored the demanding factors of initiating an exchange derivatives trading in Botswana. For this reason, it espoused the contribution of the various industries in Botswana fuelling economic development and stability. Further, the prospects and downfalls of major industries such...

Interest rate derivatives have become some of the most important derivative instruments, making up a higher proportion of financial market deals. Although financial markets are dominated by stock and stock indices in terms of activity, the bond market, and consequently the interest rate...

Commodity derivatives trading started in over-the-counter markets, but the trading has since expanded to exchange markets where futures contracts are now transacted, daily. Additionally, although, commodity derivatives were initially designed to hedge against adverse price movements in...

The currency derivative market has evolved from its early days when it was confined to transacting in listed futures contracts to modern times under which an array of investors such as portfolio managers, hedge funds, and central banks enter into over-the-counter transactions. In this paper, the...

An arbitrage arises when a non-investment, riskless undertaking results in the generation of profits. However, under efficient markets such opportunities are exploited as soon as they arise, by arbitrageurs- who are market participants with the ability to identify discrepancies in the pricing of...