Derivatives and Risk Management in the Banking Industry
The purpose of this study is to examine issues surrounding the enactment of Financial Accounting Statement 133 (SFAS 133) in managing risk in the banking industry. It examined the financial statements of ten major U.S. banks by investigating their 10Ks and 10Qs from 1999 to 2002. It found out that b...
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| Format: | Article |
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Universiti Utara Malaysia Press
2004
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| _version_ | 1825805225163751424 |
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| author | Mulugetta, Abraham Hadjinikolov, Hristo |
| author_facet | Mulugetta, Abraham Hadjinikolov, Hristo |
| author_sort | Mulugetta, Abraham |
| collection | UUM |
| description | The purpose of this study is to examine issues surrounding the enactment of Financial Accounting Statement 133 (SFAS 133) in managing risk in the banking industry. It examined the financial statements of ten major U.S. banks by investigating their 10Ks and 10Qs from 1999 to 2002. It found out that banks that had large hedge positions before SFAS 133 reduced their exposures for a while and increased their positions in 2002. Interestingly, those banks with small hedged positions before the rule, increased their positions after the adoption of SFAS 133. As expected the statement increased the degree of disclosure and transparency of derivatives activities which compliments the Sarbanes Oxley Act of 2002. |
| first_indexed | 2024-07-04T06:28:48Z |
| format | Article |
| id | uum-25111 |
| institution | Universiti Utara Malaysia |
| last_indexed | 2024-07-04T06:28:48Z |
| publishDate | 2004 |
| publisher | Universiti Utara Malaysia Press |
| record_format | eprints |
| spelling | uum-251112018-11-01T01:24:03Z https://repo.uum.edu.my/id/eprint/25111/ Derivatives and Risk Management in the Banking Industry Mulugetta, Abraham Hadjinikolov, Hristo HG Finance The purpose of this study is to examine issues surrounding the enactment of Financial Accounting Statement 133 (SFAS 133) in managing risk in the banking industry. It examined the financial statements of ten major U.S. banks by investigating their 10Ks and 10Qs from 1999 to 2002. It found out that banks that had large hedge positions before SFAS 133 reduced their exposures for a while and increased their positions in 2002. Interestingly, those banks with small hedged positions before the rule, increased their positions after the adoption of SFAS 133. As expected the statement increased the degree of disclosure and transparency of derivatives activities which compliments the Sarbanes Oxley Act of 2002. Universiti Utara Malaysia Press 2004 Article PeerReviewed Mulugetta, Abraham and Hadjinikolov, Hristo (2004) Derivatives and Risk Management in the Banking Industry. International Journal of Banking and Finance (IIJBF), 2. pp. 45-61. ISSN 1675-7227 http://ijbf.uum.edu.my/index.php/previous-issues/133-the-international-journal-of-banking-and-finance-ijbf-vol-2-no-1-june-2004 |
| spellingShingle | HG Finance Mulugetta, Abraham Hadjinikolov, Hristo Derivatives and Risk Management in the Banking Industry |
| title | Derivatives and Risk Management in the Banking Industry |
| title_full | Derivatives and Risk Management in the Banking Industry |
| title_fullStr | Derivatives and Risk Management in the Banking Industry |
| title_full_unstemmed | Derivatives and Risk Management in the Banking Industry |
| title_short | Derivatives and Risk Management in the Banking Industry |
| title_sort | derivatives and risk management in the banking industry |
| topic | HG Finance |
| work_keys_str_mv | AT mulugettaabraham derivativesandriskmanagementinthebankingindustry AT hadjinikolovhristo derivativesandriskmanagementinthebankingindustry |