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Options and Derivatives
Strategy & Education

Assignment: Definition in Finance, How It Works, and Examples

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

What Is an Assignment?

Assignment most often refers to one of two definitions in the financial world:

The transfer of an individual's rights or property to another person or business. This concept exists in a variety of business transactions and is often spelled out contractually.
In trading, assignment occurs when an option contract is exercised. The owner of the contract exercises the contract and assigns the option writer to an obligation to complete the requirements of the contract.

Key Takeaways

Assignment is a transfer of rights or property from one party to another.
Options assignments occur when option buyers exercise their rights to a position in a security.
Other examples of assignments can be found in wages, mortgages, and leases.

Uses For Assignments

Assignment refers to the transfer of some or all property rights and obligations associated with an asset, property, contract, or other asset of value. to another entity through a written agreement.

Assignment rights happen every day in many different situations. A payee, like a utility or a merchant, assigns the right to collect payment from a written check to a bank. A merchant can assign the funds from a line of credit to a manufacturing third party that makes a product that the merchant will eventually sell. A trademark owner can transfer, sell, or give another person interest in the trademark or logo. A homeowner who sells their house assigns the deed to the new buyer.

To be effective, an assignment must involve parties with legal capacity, consideration, consent, and legality of the object.

A wage assignment is a forced payment of an obligation by automatic withholding from an employee’s pay. Courts issue wage assignments for people late with child or spousal support, taxes, loans, or other obligations. Money is automatically subtracted from a worker's paycheck without consent if they have a history of nonpayment. For example, a person delinquent on $100 monthly loan payments has a wage assignment deducting the money from their paycheck and sent to the lender. Wage assignments are helpful in paying back long-term debts.

Another instance can be found in a mortgage assignment. This is where a mortgage deed gives a lender interest in a mortgaged property in return for payments received. Lenders often sell mortgages to third parties, such as other lenders. A mortgage assignment document clarifies the assignment of contract and instructs the borrower in making future mortgage payments, and potentially modifies the mortgage terms.

A final example involves a lease assignment. This benefits a relocating tenant wanting to end a lease early or a landlord looking for rent payments to pay creditors. Once the new tenant signs the lease, taking over responsibility for rent payments and other obligations, the previous tenant is released from those responsibilities. In a separate lease assignment, a landlord agrees to pay a creditor through an assignment of rent due under rental property leases. The agreement is used to pay a mortgage lender if the landlord defaults on the loan or files for bankruptcy . Any rental income would then be paid directly to the lender.

Options Assignment

Options can be assigned when a buyer decides to exercise their right to buy (or sell) stock at a particular strike price . The corresponding seller of the option is not determined when a buyer opens an option trade, but only at the time that an option holder decides to exercise their right to buy stock. So an option seller with open positions is matched with the exercising buyer via automated lottery. The randomly selected seller is then assigned to fulfill the buyer's rights. This is known as an option assignment.

Once assigned, the writer (seller) of the option will have the obligation to sell (if a call option ) or buy (if a put option ) the designated number of shares of stock at the agreed-upon price (the strike price). For instance, if the writer sold calls they would be obligated to sell the stock, and the process is often referred to as having the stock called away . For puts, the buyer of the option sells stock (puts stock shares) to the writer in the form of a short-sold position.

Suppose a trader owns 100 call options on company ABC's stock with a strike price of $10 per share. The stock is now trading at $30 and ABC is due to pay a dividend shortly. As a result, the trader exercises the options early and receives 10,000 shares of ABC paid at $10. At the same time, the other side of the long call (the short call) is assigned the contract and must deliver the shares to the long.

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Money and Banking

(7 reviews)

Robert E. Wright, NYU

ISBN 13: 9780982043080

Publisher: Saylor Foundation

Language: English

Formats Available

Conditions of use.

Learn more about reviews.

Reviewed by Nabila Rahman Biju, Assistant Professor of Economics, Berea College on 11/14/23

I really liked the fact that the first few chapters started with very basic ideas which makes it easier for the beginners to start in this field. And I like the think-boxes. read more

Comprehensiveness rating: 5 see less

I really liked the fact that the first few chapters started with very basic ideas which makes it easier for the beginners to start in this field. And I like the think-boxes.

Content Accuracy rating: 4

The discussion of moral hazard and the so called 'evil practice' is a good way to introduce students about the financial system's drawbacks. They should realize that this current system is not the best we could do so far. Rather, it the accumulation of historical accidents and there is plenty of room for improvements in this current system. So yes, I think the content was pretty unbiased.

Relevance/Longevity rating: 5

With all the detailed examples, I found it to be quite relevant. I am teaching Money and Banking class currently, and I can find most of my important topics in this book as well. So, yes, I will say this book is relevant.

Clarity rating: 5

The language of the book is really reader-friendly and as I mentioned before, I felt a non-Econ or non-Business background student also can easily understand.

Consistency rating: 4

The content and topics of each consequent chapters flow well.

Modularity rating: 5

It's already way too divided into sub-topics at least in my opinion. No need to break it down further.

Organization/Structure/Flow rating: 3

Although it is not an e-book and only a pdf, still, putting in a list of contents could be done. I strongly recommend to have a list of contents with hyperlinks linking to each chapter as it really helps. Especially when a person is re-reading, its really annoying to keep scrolling.

Interface rating: 2

Would be nice to have hyperlinks.

Grammatical Errors rating: 5

Good writing

Cultural Relevance rating: 4

I would expect more discussion of other countries also the ancient times. But it's still very relevant.

I liked it quite a bit. Only adding a list of content is the only thing I would ask for. Thanks!

Reviewed by Ulmaskhon Kalandarova, Instructor, Colorado State University on 1/2/21

Comprehensiveness rating: 3 see less

Although the book covers majority of concepts in money and banking, but unfortunately it seems that all data is outdated and sometime the fundamental legislative laws like Dodd-Frank act not even mentioned. Also, more discussion of bank regulating system is recommended - it is very brief in chapter-11. The revised and more comprehensive version of this book is recommended. For example, this book could compare its' contents with Cecetti's Money and Banking book, which is widely used in teaching this course.

Fundamental concepts seem to be discussed very well, but the demonstration data seems to be a bit loose.

Relevance/Longevity rating: 4

The text is written in clear prose. I did not have any difficulty with its understanding.

Consistency rating: 5

Text is consistent with terminology, however the modern terminology could be also included - like bitcoins, hi tech , mobile banking issues

Modularity rating: 3

Modularity needs to be revised and added more parts for practice, brief summaries, real-life examples.

Structure is outdated - need to include at least some practice problems and explanation of their solutions for some of them in the text. Also, real life examples section would be a plus. Also, brief summary of chapter's main points could improve this book.

Interface rating: 3

I think the book should be revised due to very outdated display features - it seems very old and comparing for example to Cecetti's book in money and banking - I would not choose this book for teaching - because it does not have many different informative, practice, learn sections as other books have.

I didn't find any grammatical errors in the text.

Cultural Relevance rating: 5

I would recommend to add more data from developing nations banking system for informative and comparison/analysis purposes. This could give a brief explanation of different factors that effect developing countries banking systems, and their special characteristics.

Reviewed by Peter Mikek, Associate Professor, Wabash College on 12/22/19

This is a great book for any student that is exposed to questions of money and banking for the first time.The book is certainly comprehensive in covering most of the money and banking topics, reaching a bit into macroeconomics and international finance. The 26 chapters provide overview and numerous examples of standard Money and Banking courses/textbooks and, very likely, include more material than can be thoroughly covered in a semester course. The three chapters devoted totally to banking are complemented with standard coverage of monetary policy and well placed within macroeconomic framework. It is delightful that the focus on banks within financial sector is maintained through most of the text. The text includes a chapter on financial crisis, international finance, and several chapters reviewing and scaffolding a broader context for money and banking. I was puzzled by the fact that I could not locate the chapter of Financial Derivatives. However, I suspect that this was probably some error preparing the online PDF file. While the work is very broad in its scope the text in each sections is super focused and relatively short. While I am a fan of concise textbooks, I found it occasionally too limited (for example there is a chapter with only 6 pages of text that includes several unnecessary excursions into methodology and history).

Overall, I find the book very accurate and unbiased. In some sense the text strikes me as not completely polished but still great text. The remaining typos are not crucial for understanding and can be easily identified.Let me give you some examples: in an example of a balance sheet ,the author claim that liabilities are "things owNed," they place transaction deposits on one T account among bank's assets, in a scheme of a transmission mechanism they have an arrow turned the wrong way (EMP, net worth down), "nominal rates on risky securities had in fact soared in 1930-1933" should actually talk about the real rates, etc. Again, these are small remaining errors and a reader will be able to fix them easily as they go. I am convinced that the next iteration of the text will get rid of the remaining typos.

This is definitely one of the very strong attributes of this interesting text. The examples are definitely up-to-date as it includes examples from the recent financial crises and developments in international finance. But not only that, the author uses rich historical background artfully to place the more recent examples in historical context. This contributes to richer text and better understanding of several provided examples. I believe that the text will need relatively little in terms of updating it.

Clarity rating: 4

This is a fantastically clear presentation of ideas and concepts. The authors use Stop and Think boxes to expand upon the basic ideas with examples, Key Takeaways boxes to reiterate the most important points, Exercise boxes to provide hands-on opportunities. Each section starts with clearly spelled learning objectives. Super concise text leaves the reader with clear message. But maybe the most enjoyable feature of the text is vivacious, playful, and rich language. I am REALLY impressed with the rich vocabulary and engaging, occasionally truly erudite, nicely varied language ("if not insane, at least inane,” “Asymmetric information (that horrible three-headed hound from Hades),” “if you wrap your car around a tree,” etc.). The authors try to engage the average reader also with a number of colloquial expressions that are less to my taste ("those smakers," "kinda funny that," "darn high") but I guess that is just my taste.

The authors are consistent across the chapters, they use standard field specific vocabulary. I think they score high on this point.

This is another strong quality of the text. While some parts are absolutely essential in every Money and Banking text, such as time value of money or chapter on banking and one on monetary policy, there are parts that can easily be added or dropped based on preferences of the instructor. Chapters devoted to exchange rates or international monetary arrangements can easily be postponed to later courses. Similarly, students that already had a decent intermediate macroeconomics will not need chapters focused on macro. So, the text both allows for various arrangements of the building blocks in a variety of ways.

Organization/Structure/Flow rating: 5

The textbook follows a standard order in presentation of the material. Not only the sequencing but also parsing the material into logical units was done with the due care. This is actually essential for good learning success and they did if perfectly. Additionally, I already mentioned that each section has clearly spelled learning objective and Key Takeaways that contribute to transparent structure of the text. Finally, progression from one topic to the next is seamless and easy to follow.

Interface rating: 5

Navigation is easy and clear, the figures, excercises, Stop And Think boxes are clearly marked. The text consistently uses several different colors to indicate parts of the text or to emphasize this or that (such as tables). The interface is not only easy to use, it is also nicely appealing for the reader.

I found no issues with the grammar. Furthermore, I wish to emphasize again that the use charming and vivacious language.

I found the book to follow the usual standards regarding the cultural sensitivity and non-offensive language. Despite the fact that the book is devoted to functioning of a financial system in developed capitalist economy the text includes ample examples from across the globe - in particular in chapters on international finance. German reunification, Chinese high foreign reserves and exchange rate system, Argentine currency crises are just three of numerous examples that cross the cultural and geographical borders with ease and clarity.

This is an absolutely delightful text that uses fresh, clear, and playful language in the field that can be perceived as rather dry. The book will be best suited for beginners with first encounters with money and banking. For others, a skillful instructor can easy point out on what they should focus (and where are few remaining typos). The text is comprehensive and set in a way that will serve broad set of instructor's preferences; from those that wish to focus on international finance to those that wish to include some review of macroeconomics. One of the best attributes of the book is the fact that the author never loses its focus on banks and/or monetary policy. Overall, I find the text great.

Reviewed by Partha Gangopadhyay, Professor, St. Cloud State University on 6/10/19

The text provides a comprehensive coverage of Money and Banking topics. If anything, there is too much material in the book's 26 chapters for one course. Most colleges do not have more than one Money and Banking course. The book has enough... read more

Content Accuracy rating: 5

I have not detected any error in the text. I checked out some of the hyperlinks to outside resources. The links seem to work just fine. I would like to see the sources of the tables and figures listed below the tables/figures in the book.

Relevance/Longevity rating: 2

The text needs to be revised and updated. The tables and figures in the book provide information up to 2007-2008. This applies to many of the tables/figures in chapters 9, 10, 11, 15, 16, 18, 19, 20, and 21. There is a brief discussion of banking regulation in chapter 11. However, I did not see even a mention of the Gramm-Leach-Bliley Act of 1999, or the Dodd-Frank Act of 2010, or the Basle 111 capital requirements. The discussion in the books seems to end with the Riegle-Neal Act of 1995, and the Basle 11 requirements. Also, the suggested readings at the end of the chapters need to include more current articles and other resources. The fundamental concepts of money and banking have not materially changed over time. The book does a good job of explaining these concepts. However, the banking laws and data and statistics have changed over time. These need to be updated. The book was written in 2012. It is time for a newer edition. The updates can be easily implemented.

The book is written in clear and concise language. Beginning students should not have any difficulty in reading and understanding the concepts. Students will also be able to personally relate to many of the examples and anecdotes that are spread throughout the book.

The writing style is consistent throughout the book. I also like the consistent layout of the chapters. Each chapter and section begin with a set of learning objectives, and ends with 'Key Takeaways', and a list of suggested readings. I also like the 'Stop and Think' boxes in each chapter.

I may be able to cover 10 or 11 chapters from the book in a sixteen-week semester. As I mentioned elsewhere, there is enough material in the book for at least two 'Money and Banking' courses. It will be easy to pick 10-12 chapters from the book to cover in a 'Money and Banking' class. The text is not overly self-referential, and most chapters can stand on their own. The text can be easily divided into smaller sub-units that can be incorporated in different courses.

The text and the individual chapters are logically organized. The order of the chapters is clear, and the concepts are presented in a coherent and logical manner.

Interface rating: 4

I did not detect any issues with interface. I suggest numbering the equations in chapters 4-7, 9, 14, 15, 17, 18, 20, and 21. Also, the sources of the various tables/figures should be listed below the tables or figures. Several exercises are included in chapters 4-7, 9, 15, 17, 18, and 21. I am assuming that the solutions to these exercises will be made available to the instructors in supplementary materials in the book's website. However, I suggest that the answers to at least some of these exercises should be provided in an Appendix at the end of the book. It will also be helpful if a section of conceptual questions and/or numerical exercises is added at the end of each chapter. I also suggest adding a section in chapter 4 (and in other chapters) showing how to calculate the time value of money (and bond prices) using a financial calculator.

I have not seen any grammatical errors in the book.

I did not notice any cultural insensitivity in the book.

The book is comprehensive in the coverage of Money and Banking topics. However, the book is very outdated. A new edition of the book with up-to-date discussion of the banking regulatory framework, and well as current data and statistics is needed at this point. The concepts are easy to understand, and the book is well-written.

Reviewed by Laura Carolevschi, Assistant Professor, Winona State University on 6/20/17

In its 26 chapters, the textbook covers a wide array of money and banking topics, as well as macroeconomics topics with monetary policy applications. The treatment of the subjects is clear, easy to follow and relevant with applied examples. No... read more

The content is accurate, error-free and unbiased, at least in the sections I chose to review.

The theories discussed in the textbook are up-to-date, and will stand the test of time for a while. However, some of the data will need to be updated. I'm reviewing this book in 2017, and many of the graphs have data until 2007-2008.

The author uses a story-telling format that is easy to read and accessible to both beginners and advanced learners. The book has many examples that students might be able to relate to due to personal experience.

All chapters are using the same format. The terminology and concepts are used consistently throughout the text.

While the textbook covers a variety of topics, it is easily divisible into smaller sections. Each chapter is divided into several topics, and each sub-chapter is clearly organized around a single topic, while still easily integrating within the larger subject matter of each chapter. During a regular semester I am usually unable to cover an entire textbook, and I select some chapters to cover first, with a couple of chapters as "maybe", if we still have time at the end of the semester. This textbook can be easily organized in such a way.

The topics in the text are presented in a logical and clear fashion. The organization/structure/flow are consistent throughout the text. All chapters are organized in the same format, making the text easy to read and follow.

The text is free of any interface issues. Most images/tables/graphs were clear and easy to read. However, I encountered a couple of images that were unclear - on page 258, I could only read the names of the countries, but not the text in each box even after zooming in; the table on page 304 seems to not be visible in its entirety. Another thing that would make the book easier to navigate would be a table of contents with hyperlinks to each chapter. The .pdf version that I'm reviewing does not have it.

I could not find any grammar errors. (However, I found some typos - in a few instances, it seems that the space between the words is missing, likethis.)

The treatments of topics in this textbook is respectful of different cultures.

The book provides a comprehensive yet approachable coverage of several monetary policy issues. The format of the book make it versatile to several uses - as a standalone text in money and banking classes, or as supplementary reading in introductory or intermediary macroeconomics classes.

Reviewed by Wendy Usrey, Faculty Instructor, Colorado State University on 12/5/16

This book is fantastic in terms of the breadth of finance, money and banking topics. I have found that most money and banking texts have some of the topics I want to cover in my classes, but I have seen very few that contain all of the material I am looking for in one, easily digestible textbook. With 26 chapters covering everything from how money and banking applies to our everyday lives, to the theory of rational expectations and its implications for monetary policy, this book is so comprehensive I can easily see myself using it in several different finance classes as well as in various economics courses.

I have not seen any errors in terms of content or examples/problems in the text. However, some of the hyperlinks to outside resources are no longer working.

1. I was very excited to see all of the hyperlinks to external content (new stories, other texts, etc), but as mentioned above, quite a few of the hyperlinks are no longer working. Depending on the link this could be a relatively easy fix, but some of these sources may no longer exist and may need to be removed. While not particularly difficult, if the text refers to the content referenced by the link, portions of the text will need to be rewritten if the links are removed. I also noted a few places where the text is already in need of some updating, for example, the book does a good job of explaining the 2007-2008 Financial Crisis, along with concepts such as the “Lender of Last Resort” and monetary policy, but does not contain any discussion on quantitative easing. This was a very critical and important (as well as controversial) component of the Federal Reserve's response the Financial Crisis, so it should have been included in the text or added in an update.

Overall the text is written in a very accessible manner without sacrificing academic rigor. Concepts are explained fully but in such a way that students from a variety of backgrounds should be able to understand the content. As another reviewer mentioned, a glossary or index at the end of the text would be very useful for helping to navigate the text and find definitions of key terms quickly.

Terminology, writing style and framework remain consistent throughout the text.

Despite the amount of material, this text is very well organized. The content is broken up into manageable chunks with very clear learning objectives stated at the beginning and key takeaways at the end of each section. This format makes a big difference in terms of helping the reader stay oriented so they do not get lost in the world of financial jargon and concepts. I particularly liked how each chapter was organized with so many additional resources and references. I particularly like the clear chapter objectives, followed by learning objectives for each sub-section. The "suggested reading" at the end of each chapter, as well as the "stop and think" boxes make the text very approachable for students and give the instructor a lot of great ideas for incorporating outside content and examples into the class.

The order in which the topics are presented is also very good with progression between concepts fluid and intuitive, but hyperlinks referring to other parts of the text make it very easy for an instructor to teach the topics in an order that suits their individual class structure without the worry of having students end up "lost in the text."

The interface of the book is very easy to navigate. Content displays as expected and does not seem to be affected by the format (I reviewed both the web interface as well as the downloaded PDF version). One thing that would make navigation easier would be to add hyperlinks from the table of contents to the chapters in the downloadable PDF version. This feature is available when viewing on the web, but did not appear as an option once I downloaded the PDF.

No grammar or spelling errors were found during my review.

As expected from an academic text, there are no insensitive or offensive references in the text. Additionally, the information is easy to understand regardless of cultural background and can easily be used in diverse classes with little to no adaptation.

Overall I think this is a solid, well written text that contains a lot of relevant and useful information. The world of finance can be intimidating and the author does a wonderful job of helping make the subject matter approachable and interesting, particularly with the use of humor and clever chapter titles. I intend to use this text in several of my own classes that range from introductory up to intermediate level classes.

Reviewed by Mahmoud Al-Odeh, Assistant Professor, Bemidji State University on 6/10/15

This is a good textbook that covers a wide range of topics in the economic analysis theory and application. The book consists of 24 chapters that cover current topics related such as Interest Rates, Inflation, Rate of Return, Future and Current Value of Money, Money Supply Process, Monetary Policy Tools and Foreign Exchange. The book also disscussed Balance Sheet and a T-account and provided strategies for Bank Management. The chapters include a good examples to be used in the classroom to explain the topic. The exercises at the end of each topic are extremely helpful and can be used as homework assignments.

I have reviewed several examples given in the book and I found that the book is accurate and contains no errors.

The content and the topics in the book is very good for introductory and intermediate economy classes. The examples provided are current and up-to-date. As any textbook, it is recommended changing and updating the content at least once every five years to include more relevant examples and case studies.

The book is written in a way that students can easily understand the content without difficulties. I also like the funny style (e.g. “grandma, bless her soul,” examples) and the creativity in writing the exercises. This creativity in writing will keep students more engaged with the book content. The examples are clear and short to the point.

The textbook is consistent in terminology and framework. The terms use in each chapter are consistent across the chapters. It is recommended to include a section (e.g. appendix) for key terms & definitions.

The chapters are organized and divided into subsections/subtopics with objectives that support the overall chapters’ objectives. These objectives that are listed at the beginning of each topic are very helpful to assess students’ knowledge. The examples provided in each chapter can be used by instructors to explain the topic in each chapter and to measure the achievements of specific objectives. Some of the features that I like in this textbook are: “key takeaways” sections summarize important points in the topic/chapter; “Suggested Reading” sections provide resources and links to be used for more information; “Stop and Think Box” sections provide discussion topics that make students think about the big picture of the chapter; and “exercises” sections can be used to assess students’ knowledge regarding specific chapter/topic objectives.

Excellent. The logical organization of the chapters made the topics presented more appealing and interesting to students. The book organized using components such as: topics objectives, explanations, examples, key takeaways, Stop and Think Box, and exercises. All these components made the structure of the book easy to follow.

Very good. I found no issues. For future improvements, it would be helpful if special techniques or applications used for writing equations. For example, the equation on page 63 “FV = PV(1 + i) n” it should be PV = FV/(1 + i) ^ n as it is summarized in “key takeaways” on page 66. Also, it is recommended separating the examples giving from the discussion or the explanation. It could be the explanation and discussion first and then section with “example X.X” heading to show an example.

No grammar issues found.

The text is not culturally insensitive or offensive in any way. The examples and topics provided are applicable in any country and for any cultural environment.

This is a good textbook that covers theory and application of the economic analysis. The book structure and the writing style made the topics easy to understand by students. It is highly recommended to be used for introductory and intermediate economy classes. The examples and exercises provided are excellent to be used as in-class activities and homework assignments.

Chapter 1: Money, Banking, and Your World
Chapter 2: The Financial System
Chapter 3: Money
Chapter 4: Interest Rates
Chapter 5: The Economics of Interest-Rate Fluctuations
Chapter 6: The Economics of Interest-Rate Spreads and Yield Curves
Chapter 7: Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities
Chapter 8: Financial Structure, Transaction Costs, and Asymmetric Information
Chapter 9: Bank Management
Chapter 10: Innovation and Structure in Banking and Finance
Chapter 11: The Economics of Financial Regulation
Chapter 12: Financial Derivatives
Chapter 13: Financial Crises: Causes and Consequences
Chapter 14: Central Bank Form and Function
Chapter 15: The Money Supply Process and the Money Multipliers
Chapter 16: Monetary Policy Tools
Chapter 17: Monetary Policy Targets and Goals
Chapter 18: Foreign Exchange
Chapter 19: International Monetary Regimes
Chapter 20: Money Demand
Chapter 21: IS-LM
Chapter 22: IS-LM in Action
Chapter 23: Aggregate Supply and Demand and the Growth Diamond
Chapter 24: Monetary Policy Transmission Mechanisms
Chapter 25: Inflation and Money
Chapter 26: Rational Expectations Redux: Monetary Policy Implications

Ancillary Material

About the book.

The financial crisis of 2007-8 has already revolutionized institutions, markets, and regulation. Wright's Money and Banking V 2.0 captures those revolutionary changes and packages them in a way that engages undergraduates enrolled in Money and Banking and Financial Institutions and Markets courses.

Minimal mathematics, accessible language, and a student-oriented tone ease readers into complex subjects like money, interest rates, banking, asymmetric information, financial crises and regulation, monetary policy, monetary theory, and other standard topics. Numerous short cases, called "Stop and Think" boxes, promote internalization over memorization. Exercise drills ensure basic skills competency where appropriate. Short, snappy sections that begin with a framing question enhance readability and encourage assignment completion.

The 2.0 version of this text boasts substantive revisions (additions, deletions, rearrangements) of almost every chapter based on the suggestions of many Money and Banking instructors.

Some specific highlights are: Chapter 11 now contains enhanced descriptions of recent regulatory changes, including Dodd-Frank, Chapter 12 is an entirely new chapter on derivatives covering forwards, futures, options, and swaps that also including comprehensive treatment of the causes and consequences of financial crises, and Chapter 14 has updated discussions of the Federal Reserve's monetary policy tools, including paying interest on reserves, and the structure and leadership of the European Central Bank.

Recent financial turmoil has increased student interest in the financial system but simultaneously threatens to create false impressions and negative attitudes. This up-to-date text by a dynamic, young author encourages students to critique the financial system without rejecting its many positive attributes. Peruse the book online now to see for yourself if this book fits the needs of your course and students.

This textbook has been used in classes at: Augustana College, Central Michigan University, Florida State University, Lyndon State College, Princeton University, Rutgers University, University of Southern Maine, Western Oregon University., Westminster College.

About the Contributors

Robert E. Wright was born in 1969 in Rochester, New York, to two self-proclaimed factory rats.

"I recall little of my earliest days except the Great Inflation and oil embargo, which stretched the family budget past the breaking point. The recession in the early 1980s also injured my family’s material welfare and was seared into my brain. My only vivid, noneconomic memories are of the Planet of the Apes films (all five of them!) and the 1972 Olympics massacre in Munich; my very young mind conflated the two because of the aural similarity of the words gorilla and guerilla.

After taking degrees in history from Buffalo State College (B.A., 1990) and the University of Buffalo (M.A., 1994; Ph.D., 1997), I began teaching a variety of courses in business, economics, evolutionary psychology, finance, history, and sociology at Temple University, the University of Virginia, sundry liberal arts colleges, New York University’s Stern School of Business, and, since 2009, Augustana College (the one in South Dakota, not the one in Illinois), where I am additionally the director of the Thomas Willing Institute for the Study of Financial Markets, Institutions, and Regulations. I’ve also been an active researcher, editing, authoring, and coauthoring books about the development of the U.S. financial system (Origins of Commercial Banking, Hamilton Unbound, Wealth of Nations Rediscovered, The First Wall Street, Financial Founding Fathers, One Nation Under Debt), construction economics (Broken Buildings, Busted Budgets), life insurance (Mutually Beneficial), publishing (Knowledge for Generations), bailouts (Bailouts), public policy (Fubarnomics), and investments (The Wall Street Journal Guide to the 50 Economics Indicators That Really Matter). Due to my unique historical perspective on public policies and the financial system, I’ve also become something of a media maven, showing up on NPR and other talk radio stations, as well as various television programs, and getting quoted in major newspapers like the Wall Street Journal, New York Times, Chicago Tribune, and the Los Angeles Times. I publish op-eds and make regular public speaking appearances nationally and, increasingly, internationally. I am also active in the Museum of American Finance and sit on the editorial board of its magazine, Financial History.

I wrote this textbook because I strongly believe in the merits of financial literacy for all. Our financial system struggles sometimes in part because so many people remain feckless financially. My hope is that people who read this book carefully, dutifully complete the exercises, and attend class regularly will be able to follow the financial news and even critique it when necessary. I also hope they will make informed choices in their own financial lives."

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Loan Participation Vs Assignment

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Sub-participation

Sub-participation is a form of loan participation in which a lender shares its risk with a second party. This type of loan participation does not change the documentation of the loan. This type of loan participation can also include future amounts for loans that have not yet been fully disbursed, such as a revolving credit facility.

The legality of sub-participation is dependent on the conditions of the loan agreement. In general, a loan participant cannot enforce the loan or proceed against the collateral on their own. Furthermore, the borrower may not even be aware that the loan participant is involved. However, the seller of the participation retains the right to enforce or compromise the loan, as well as to amend it without the consent of the participant.

As for drafting sub-participation agreements, there are many ways to do so. But it is important to include at least the following provisions: The term of the agreement, the rate of interest, and the repurchase provisions. These provisions should be included in the sub-participation or assignment agreement.

Assignment and sub-participation are standard terms in inter-bank transactions. We will examine the purposes of the loan participation and assignment agreements, as well as the terms of the transaction. While they are essentially interchangeable, they are fundamentally different.

Loan participation and assignment are both ways to transfer ownership of a loan. Assigning a loan to a third party or sub-assigning it to yourself is a common way to transfer the loan.

The terms “loan participation” and “assignment” are often used in the banking industry. Both terms refer to the transfer of a loan’s rights and payments between two financial institutions. We’ll look at what each term means and how they differ from each other.

Loan participation has long been a common form of loan transfer. Its advantages over other loan transfer methods include the ability to diversify a portfolio and limit risk. It also eliminates the need for loan servicing. However, this option can be problematic when it differs from underlying loans. For this reason, it’s important to structure loan participation carefully.

Whether a loan is a participation or an assignment depends on a variety of factors. The percentage of loan ownership, relationship with the other financial institution, and confidence in the other party are all important considerations. However, the basic difference between participation and assignment is that the former involves the original lender continuing to manage the loan while the latter takes on the responsibility of doing so.

As a rule, loan participation is a good option if the original lender does not want to keep the title of the loan. It allows the borrower to avoid the costs associated with the loan and is more attractive for borrowers. In addition, loan participation arrangements can be more flexible than outright assignments. However, it’s important to make sure that the arrangement you enter into is formal. This will prevent any confusion or conflict down the road.

Syndication

Understanding the differences between loan participation and syndication is important for lenders. Understanding these two options can help them find the best solutions for their lending needs. Syndication is a common type of lending program where lenders pool their loans together to reduce the risks of defaults. Loan participation programs can be more complex and require due diligence to be effective.

Syndicated lending allows lenders to access the expertise and business relationships of their fellow lenders while maximizing their exposure to deal flow. However, lenders who join a syndicated lending arrangement often give up some of their independence and flexibility to take unilateral action. In addition, these arrangements often involve the involvement of legal counsel, which can also be important.

A loan participation arrangement is a group of lenders coming together to fund a large loan. A lead bank underwrites the loan and sells portions of it to other financial institutions. Loan syndication, on the other hand, is an arrangement whereby multiple financial institutions pool their money together and make one large loan. In this type of arrangement, the original lender transfers the rights and obligations to the purchasing financial institution. The risk is then shared among the participating lenders, allowing them to share in the interest and the risks of the loan’s default.

A syndication contract can be structured in as many tranches as necessary to meet the borrowing needs of a customer. The underlying contract will contain a commitment contract that specifies the ratio of participation among the participants. Each tranche will have a borrower, which will be a common participant or may be different. The contract will require that each participant fulfill their commitments before the scheduled due dates.

Loan participation and assignment are standard transactions between banks. They are similar in some respects but have different purposes.

There are many types of loan participation agreements. Some involve a full assignment, while others are a sub-participation. If you are involved in loan participation or assignment, you need to understand which type of agreement applies to your situation. There are several types of loan participation agreements, including sub-participation agreements, undisclosed agencies, and assignments.

Sub-participation agreements are typically used to assign part of the loan amount to a new lender, and the loan documentation remains unchanged. In addition, these types of agreements include future amounts, which may be provided as part of a revolving credit facility or a portion of a loan that hasn’t been fully disbursed.

Loan participation is a popular option for lenders to limit their exposure to borrowers. Lenders may sell a portion of the loan to an investor or sell a portion of their interest to another party. While the transfer of a loan portion does not always require the consent of the transferor, lenders must consider participating interest guidelines and the applicable rules.

How Do Variables Affect Bank Loan Sales?

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Banking Fundamentals

The concepts and principles relating to the practice of banking

What are Banking Fundamentals?

Banking fundamentals refer to the concepts and principles relating to the practice of banking. Banking is an industry that deals with credit facilities, storage for cash, investments, and other financial transactions. The banking industry is one of the key drivers of most economies because it channels funds to borrowers with productive investments.

Banking Fundamentals - Image of the word bank written on a building facade

Banks perform a myriad of functions, including deposits and withdrawals, currency exchange, forex trading, and wealth management. Also, they act as a link between depositors and borrowers, and they use the funds deposited by their customers to provide credit facilities to people who want to borrow.

Banks make money by charging an interest rate on loans, where they profit by charging a higher interest rate than the interest rate they pay on customer deposits. However, they must comply with the regulations set by the central bank or national government.

A bank is an institution that accepts customer deposits and offers loans to individuals and corporate clients.
Banks make money by charging higher interest on loans than the interest they pay on customer deposits.
In the United States, banks are required to retain 10% of the customer deposits as reserves, while using the other 90% to provide loans.

Banking Fundamentals – How the Banking Industry Works

In the United States, banks are regulated by the Federal Reserve . Banks must retain at least 10% of each deposit on hand but can lend out the other 90% as loans. The reserve requirement applies to all types of banks that are licensed to operate in the United States, and they can hold the reserve as a deposit in the local Fed bank or as cash in the vault.

The actual reserve requirement is determined by the Federal Reserve Board of Governors. When the Fed reduces the reserve requirement for member banks, it is implementing an expansionary monetary policy, which increases the amount of money in the economy. On the other hand, when it increases the reserve requirement, it is implementing a contractionary monetary policy that reduces liquidity.

All the Fed’s member banks must be insured with the Federal Deposit Insurance Corporation (FDIC) . The FDIC was created in 1933 after the Great Depression through the enactment of the Glass-Steagall Act. It came after multiple bank failures that resulted in banking panics, with depositors demanding all their deposits held at the bank.

The FDIC was formed to prevent such occurrences by insuring all deposits that customers keep at the bank. It insures savings accounts, checking accounts, and other deposit accounts. During the 2008 Global Financial Crisis , the FDIC raised the deposit limit to $250,000 per account to protect depositors from the crisis.

For a deeper understanding of the banking industry and its workings, see CFI’s Introduction to Banking course!

Banking Fundamentals – Types of Bank Accounts

The common types of bank accounts include:

1. Savings account

A savings account is a bank account that a customer can deposit money in that they do not need right away, but that is available for withdrawal whenever needed. The bank loans out the money to borrowers and charges interest on the amount of credit disbursed.

2. Checking account

A checking account allows customers to access their deposited funds with ease, and they can use it to make their financial transactions such as paying bills. A customer can access the funds by writing a check, using a debit card to withdraw money or make payments, or by setting up automatic transfers to another account.

3. Certificate of deposit

A certificate of deposit is a bank account that holds a fixed amount of money for a defined period of time such as six months, one year, two years, etc. It pays a fixed interest rate on the amount held.

Banking Fundamentals – Types of Banks

Below are the most common types of banks in the United States:

1. Commercial banks

Commercial banks are the most common type of bank. They provide various services such as providing business loans, accepting deposits, and offering basic investment products to both individuals and private businesses.

Commercial banks also offer other financial services such as global trade services, merchant services, insurance products, retirement products, and treasury services. They make money by providing business loans to individual and corporate borrowers and earning interest income from them, and also by charging service fees.

2. Credit unions

A credit union is a type of bank that is open to a specific category of people who are eligible for membership. It is member-owned and is operated by the members on the basis of people helping people. Traditionally, credit unions served either residents of a local community, members of a church, employees of a specific company or school, etc.

The ownership structure of credit unions allows them to offer more personalized and lower-cost banking services to their members. Due to their small operating size, credit unions may pay higher interest rates than banks, and customers can build a better relationship with the banking staff. On the downside, the credit unions’ operations are limited, and the customer’s deposits are less accessible.

3. Investment banks

Investment banks are banks that provide corporate clients access to the capital markets to raise funds for expansion. They help companies raise funds in the stock market and bond market to finance their expansion, acquisitions, or other financial plans. They also facilitate mergers and acquisitions by identifying viable companies for acquisition that meet the buyer’s criteria.

Investment banks make money by offering advisory services to corporate clients, trading in the financial markets, and representing clients in mergers and acquisitions. Some examples of large investment banks in the U.S. include Merrill Lynch, Goldman Sachs , J.P. Morgan, and Bank of America.

Additional Resources

Thank you for reading CFI’s guide to Banking Fundamentals. To keep learning and advancing your career, the following CFI resources will be helpful:

CFI’s Finance Fundamentals Challenge
Banking Certifications
Checking Account
Bank Rating
Glass-Steagall Act
See all wealth management resources
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Assignment in Finance: Definition, Mechanisms, and Applications

Last updated 03/15/2024 by

Fact checked by

What is assign?

Understanding assign, assign and options, assign and property.

Facilitates efficient transfer of rights
Enables fulfillment of contractual obligations
Supports liquidity and efficiency in financial markets
Potential for contractual disputes
Complexity in legal documentation
Risk of non-compliance with contractual obligations

Frequently asked questions

What is the significance of assignment in financial markets, how are assignments managed in options trading, what are the key considerations in property assignments, key takeaways.

Assignment serves as a fundamental mechanism for transferring rights and obligations in finance and law.
In financial markets, assignment plays a crucial role in options trading, ensuring the orderly execution of contracts and the transfer of assets.
Property assignments involve various transactions, including mortgage transfers, trademark assignments, and wage redirection.

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299+ Engaging Banking And Finance Project Topics

Hello! Have you ever wondered how money works in our world? Well, get ready to dive into the depth of interesting banking and finance project topics.

You might think banks are only about saving money or getting loans, but there’s a whole lot more to explore. In this amazing list of project ideas, we’ll uncover cool things like how banks help businesses grow, why saving money is super important, and even how they keep our money safe.

Ever heard of things like ‘investments’ or ‘global connections’? We’ll solve these mysteries together and see how they make our world a more connected and interesting place.

From learning about how banks support big projects in our cities to understanding how our money can actually make more money there’s a whole financial universe waiting for us to discover! Let’s start this journey together and unlock the secrets of banking and finance.

Unlock the mysteries of finance effortlessly with our expert-guided ! Get ready to ace your finance projects with precision and clarity.

Contribution Of Banking And Finance In A Country’s Economy

Table of Contents

Banking and finance play an important role in how a country’s economy works. They’re like the heart and blood vessels in our bodies, helping money flow through the economy and keeping it healthy. Here are some key contributions they make in a Country’s economy:

Savings and Loans: Banks help people save money and also lend money to others. When we save money in a bank, it’s like putting it in a safe place where it can grow. And when someone needs money for a house, a car, or to start a business, banks can lend it to them.
Business Growth: Finance helps businesses grow. Imagine someone has a fantastic idea for a new company but doesn’t have enough money to start. Banks can provide loans to turn these ideas into real businesses, creating jobs and products we use every day.
Investments: Finance helps people invest. When we invest, we’re using our money to buy things that can grow in value, like stocks or properties. This helps our money grow over time.
Supporting Government: Banks help governments run countries smoothly. They manage money for things like building roads, schools, and hospitals. Without banks, it would be tough for governments to do these big projects.
Stability and Security: Finance helps keep our money safe. Banks use security measures to protect our savings. Imagine if we had to keep all our money at home—there might be a risk of it getting lost or stolen.
Global Connections: Banks help countries work together. They allow people and businesses from different countries to trade and do business with each other easily, which makes the world more connected.
Interest and Savings: When we save money in a bank, they pay us interest. That means they give us a little bit more money over time. It’s like a reward for letting them keep our money safe.
Economic Growth: All these things together—saving, lending, investing, and more—help the economy grow. When the economy grows, it means there are more opportunities for everyone to have jobs and better lives.

So, banking and finance are really important because they help us manage our money, make it grow, and make sure our economy stays strong and healthy.

299+ Banking And Finance Project Topics

Top 15 project topics on risk management in banking.

Credit Risk Assessment Models in Banking
Market Risk Management Strategies and Techniques
Operational Risk Frameworks: Implementation and Analysis
Liquidity Risk Management in Financial Institutions
Stress Testing: Methods and Applications in Banking
Basel III Regulations: Impact and Compliance in Risk Management
Cybersecurity Threats and Risk Mitigation in Banking
Fraud Detection and Prevention Mechanisms in Financial Institutions
Risk Management in Investment Banking: Challenges and Best Practices
Derivatives and Risk Hedging Strategies in Banking
Systemic Risk Analysis in the Banking Sector
Risk Governance and Frameworks in Financial Institutions
Model Risk Management in Banking
Non-Performing Loans: Assessment and Risk Mitigation Strategies
Technology and Innovation in Risk Management for Banks

Step by Step Guide on The Best Way to Finance Car

The Best Way on How to Get Fund For Business to Grow it Efficiently

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50 Questions on Money, Banking and Finance with Answers | ECON 353, Exams of Economics

Material Type: Exam; Class: MONEY,BANK,FIN INST; Subject: ECONOMICS; University: Iowa State University; Term: Fall 2007;

Typology: Exams

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Banking and finance assignment

Provide a concise summary of the causes of the 1997 Asian financial crisis and he resulting damages. Students are advised to link concepts taught in class to their answer. Strong growth was typical of economies in the South East Asian region in the years leading up to the currency crisis (Mimicking 1997). Significant increases in stock and land prices in the region fueled foreign investments and lending, creating an economic boom. This lasted until the mid-sass when growing competition and a weakening Japanese yen slowed economic growth and reduced asset prices (Moreno 1998).

These events triggered collapsing currencies starting with the Thai baht. In retrospect, the growth witnessed in Thailand was cost likely caused by a large influx of foreign capital facilitated by a pegged exchange rate. Moreno suggests that poor credit allocation was also a factor, in which borrowers who were well connected were also granted credit. In addition, financial intermediaries were protected by government guarantees, creating severe moral hazard. This resulted in poor risk management and transformation and gave little incentive to banks to choose clients wisely.

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This became apparent in South Korea where companies with unhealthy debt ratios were granted credit and had to rely on special government loans to service their debts. Since it is common for financial intermediaries to practice size and maturity transformation (Case 2006), a sudden withdrawal of deposits would make the system vulnerable to collapse and be unable to fulfill its obligations. This is because as liquid deposits, in the form of foreign investors, start to panic and withdraw, financial intermediaries are left with collateral, often in the form of illiquid and highly risky assets.

In addition, the risky lending practices that were present at that time suggests that a significant number of borrowers would have defaulted on their loans. A weakening currency and slowed economic growth old then cause these illiquid assets to fall in value and be difficult to convert into liquid funds. In April 1997, Thai authorities suspended trading in finance company shares on the Bangkok stock exchange. This brought attention to the weakness in the economy that had been disguised by large growth and investments.

Fearing that if financial institutions losing their credibility would do more harm to their currency, the Thai authorities chose to devalue the Thai baht instead. By November the same year, South East Asian currencies dropped by over fifty percent below their pegged levels. However, it was unlikely that a financial crisis old have been avoided either way as the revaluation depreciated the currency on bank balance sheets. The events in Thailand triggered panic and speculation in the region, affecting the Malaysian ringing and the Philippine peso shortly after.

The ringing depreciated against the dollar by nearly fifty percent in the middle of May 1997. Weeks later, the composite index of the Koala Lump Stock Exchange fell by 44. 9 percent (Riff 1999). In the Philippines, the peso fell twelve percent to the dollar when news spread that the country will loosen controls on the peso (Holey 1997). The Singapore dollar also suffered a decline of 18. 3 recent against the US dollar over a six month period and the Straits Times Index dropped approximately 60 percent over a year.

However, because of a gradual devaluation and measures to reduce labor costs, the impact in Singapore was relatively mild Ion 2000). In August the same year, Indonesia decides to float the currency freely and resulted in an immediate depreciation. Anna’s (1999) suggests that this is due to a lack of investor confidence in the currency. Additionally, government interventions distorted the market and frightened investors, preventing a natural rebound. Indonesian economy was also fundamentally flawed, in a animal fashion to Thailand, in which lenders were providing credit to either well connected clients or risky firms.

There was also little supervision and accountability which fueled panic in Indonesia. However, unlike in Thailand, Indonesian authorities refused to implement the International Monetary Fund’s (MIFF) policy recommendations, delaying the receipt of much needed funds in face of a plummeting rapid. Indonesian president would eventually agree to eliminate monopolies and insolvent financial institutions as per MIFF macroeconomic policies but only after the rapid reached 10,000 to the U. S dollar.

In October the same year, Hong Gong’s exchange, the Hang Seen index fell by 23 percent over four days (The University of Hong Kong 2001). Similar to Singapore, Hong Gong’s economy was robust and well-regulated, but was still subject to speculative attacks on its currency. However, with support from the People’s Republic of China and their reserves, in addition to Hong Gong’s own exchange reserves of US$billion, it was able to defend its currency from devaluation. This outcome was not without consequence, as interest rates rose to nearly 280% and the interbrain rate reached 20% (and subsequently 15% and 10%).

At its lowest point, the stock market index was 60% below its peak. Soon after the decline of the Hang Seen exchange, the South Korean won began to decline. At the beginning of the year, Korea was plagued by failing corporate entities. Domestic financial intermediaries funded these local corporations using the influx of foreign capital, often ignoring usual business criteria. However, as contagion spread from Thailand, Indonesia and Hong Kong, financial intermediaries no longer had the liquidity to fulfill their obligations.

This prompted government intervention to guarantee the debt of local institutions, essentially bailing them out. By the end of the year, the Won had dropped by 50% against the U. S dollar and the stock market had dropped by over 40%. This was the result of Korean financial intermediaries abandoning its efforts to defend the value of the won. Soon after, South Korea requested for MIFF aid. The crisis in Asia has effects that were felt in the rest of the world as the DOD Jones Industrial Average declined 7. 18% in the day of October 27, 1997.

In addition, the NASDAQ Composite fell 7% and the S&P 500 fell 6. 86 percent on the same day. It is estimated that $663 billion in market capitalization was wiped out (U. S SEC 1998). The panic caused US authorities to suspend stock market trading temporarily. In Japan, several top ranking firms started to fail, including Tussock Bank and Yamaha Securities, two of the largest financial institutions in Japan. These companies failed in spite of the government pledging to support them caused consumer confidence to drop and caused widespread panic in the country (Tit 1999).

Tit states that the Japanese economy was fundamentally flawed as it was still recovering from stagnation since 1992. Weak exportation from Japan was also a factor as trade and investments in Asia are closely tied between countries. Sharp declines in land and asset prices also resulted in many defaulted loans which weakened the banking system in addition to currency depreciation. The author suggests that Japan, among other countries, did not have the legal framework to close insolvent banks before the crisis hit in 1997.

By July 1997, the Japanese Yen had depreciated by over 30% from pre-crisis levels, although it should be noted that the Yen had already been plagued by depreciation since 1995. At the peak of the crisis, the MIFF had given funds to countries in the region to keep affected financial intermediaries lending and increasing real output. These entries most notably included Thailand, Korea and Indonesia. In addition to funds, the MIFF also required the authorities of these countries to adopt policy changes according to MIFF recommendations.

Such measures included structural reforms, in particular, the financial and corporate sectors, in order to facilitate lending and growth. Strict monetary policies were also adopted, such as the increasing of interest rates to stabilize exchange rates and fiscal policies to give governments adequate resources to finance the structural reforms. In certain countries, the MIFF had also demanded that certain conditions were met, such as n Indonesia when the president was required to close down insolvent financial institutions or in Korea where the MIFF demanded mass lay offs to restore its financial credibility.

Despite the injection of over US$110 billion to Thailand, Korea and Indonesia, foreign investments continued to pull out from these countries and continued on into 1999. The exchange rate also continued to decline in spite of MIFF funds, with currencies in the region recovering to only of what they were in pre-crisis levels. The Indonesian rapid was the worst hit as it only managed to recover to approximately 20% of its pre-crises value after the implementation of these programs. In Indonesia, the crisis had severe ramifications politically and socially.

The free- fall of the rapid triggered panic buying and soon store shelves were empty. Prices for basic food staples increased by as much as 80% which lead to the 1998 food riots of Indonesia. In addition, the failing economy resulted in mass unemployment which only fueled resentment with the ruling party. The violence was target particularly at ethnic Chinese, who were seen as being the cause of the financial crisis. At that point in time, 73% of publicly listed companies were wend by ethnic Chinese, despite making up only 3% of Indonesian population.

Religious differences, historical resentment and ignorance and fear about the Chinese served to fuel the spark that was the financial crisis. It is estimated that the riots caused approximately 3 trillion rapid in damage and over a thousand deaths (Purdue 2005). In the wake of the riots, President Short resigned following the severe economic and political crises in the past year. It could be suggested that the resentment of Short by the Indonesian people came from the fact that Short was unwilling to fulfill his end of the agreement with the MIFF early in 1998, which lead to delays in loan packages.

In South Korea, as part of MIFF reforms, South Korean firms have been conducted mass layoffs, averaging 1 0,000 workers laid off per day. This led to a two-day nationwide strike in protest of the unemployment in the country. In addition, high interest rates and restricted credit caused sales to decline, pushing Koreans largest firms to the verge of bankruptcy (Wolfe 1998) Although a $57 billion package was approved for South Korea, foreign investors continued to sell Korean assets and equities into late 1998, causing further damage to the won and the Korean stock market.

The outcome in Russia was similar to South East Asia, although it should be noted that Russia still had substantial sovereign debt inherited from the former Soviet Union. Prior to the events in 1997, Russian’s economy was undergoing reforms and had begun to stabilize and grow despite wages and unemployment still being a problem (Chided 2002). Although not directly affected by the crisis, the outcome is still significant. By the middle of 1998, the ruble had devalued from 5 to the U. S dollar to almost 30 to the U. S dollar. In addition, Russian’s main exports, oil and nonferrous metals, began to drop in price.

At this point in time, investor confidence was not good, despite talk of MIFF funds to alleviate the situation. Internal strife within the ruling party proved to harm investor further, when President Yellows fired his entire government. In August 1 998, the Russian stock market had dropped 65% over 7 months amidst fears that the Russian government would devalue the ruble (which it later did) and default on its domestic debt. At the end of 1 998, real output for the year decreased 4. 9% and the current ruling party seemed unable to successfully reform its economy.

Similar to the countries in South East Asia, Russia also faced increased interest dates which increased its debt rapidly as interest payments mounted. The panic in Russia spreads to Latin America which causes stock and bond markets to plunge. Soon after, the DOD Industrial average starts to decline, dropping a total of 512 points, or 6. 4% on August 31 1998 (Gang 1998). Conclusion Although the crisis lasted for less than two years, it is likely that the debts created by accepting MIFF bailout packages will take a long time to repay.

The crisis had a worldwide impact starting with the decline of one currency. There are some traits that are shared amongst many of the countries involved in the crisis. Firstly, financial intermediaries spurred on by the large influx of foreign depositors were eager to lend as much as possible to generate income. This resulted in poor, almost non existent credit risk management often influenced by connections or individuals in positions of power. This was most prevalent in Indonesia where President Short would keep insolvent financial institutions with family ties running.

Second, government guarantees to assume defaulted liabilities create severe moral hazard on the part of financial intermediaries. Loans were often granted to companies with unhealthy financial ratios. This was cost prevalent in South Korea. Third, excessive inflow of capital often disguised weaknesses in the market or financial systems in these countries, which distorted true market and operational risk. Examples of this can be found in Thailand, Indonesia and Russia. Contagion and panic played a large role in the crisis.

Although the crisis affected the entire region, it could be argued that certain countries with sound macroeconomic policies, growth and banking regulations would have been strong had it not been for fear and speculative attacks. Countries such as Malaysia, Philippines, Singapore and Hong Kong only came under attack because f the events that occurred in Thailand. This is natural as the region is closely linked by trade and investments. Additionally, Russia, which is a country that is relatively more remote to the South East Asian region, should have been able to fend off the crisis.

However, it was fear and speculation that triggered a mass withdrawal of investments which subsequently revealed weaknesses in a country that has just started to recover from a recession. It is likely that if the contagion was isolated in Thailand, many of the other economies, which were robust to begin with, would not have suffered such a severe outcome. The end result of the above factors was a chain reaction in various countries where financial intermediaries were in a position where their assets (devalued by currency, decline in prices, defaulted loans) could not cover their liabilities and mass withdrawals.

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Teens lack financial literacy and maths skills for digital economy, OECD report finds

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Amy Borrett in London

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

This article is the latest part of the FT’s Financial Literacy and Inclusion Campaign

Teenagers in rich countries lack the financial literacy and maths skills needed to prepare them for the digital economy, according to an OECD report.

Despite growing numbers opening bank accounts and showing an interest in cryptocurrencies, the majority of 15-year-olds in the Pisa study, published on Thursday , struggled to understand key financial terms and a fifth found it difficult to calculate percentages.

Experts say this underlines a persistent gap between young people’s financial knowledge and the increasingly vast range of products that they are being exposed to online.

“There is a moving target in terms of the skills that are needed to achieve basic financial literacy,” said Carmine Di Noia, OECD director for financial and enterprise affairs. “These are uncharted territories. Ten years ago we wouldn’t have talked about crypto or AI or finfluencers [financial influencers].”

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The study explored the links between teenagers’ financial literacy and their competency in maths and reading, as well as their money experiences, habits and exposure to financial literacy at home and in school.

Across the 14 OECD countries within the 20 nations surveyed — including the US, Italy and the Netherlands — an average of 18 per cent of teens had difficulties using division to handle their finances.

These low-performing students struggled with everyday spending decisions, such as calculating whether buying tomatoes by the box or kilogramme was better value.

The report also found that although about two-thirds of teens in the 14 OECD nations were financially active and had opened bank accounts, just 36 per cent of those surveyed were confident about reading bank statements.

There has been limited improvement in financial literacy in the four countries — the US, Italy, Spain and Poland — that have taken part in the Pisa test since it first began in 2012.

In each of the four countries, more than one in seven students still lacks basic money skills, based on the 2022 findings.

Meanwhile, just 11 per cent of students from all the 20 nations involved could solve complex money problems, spot transaction costs, or understand the differences in types of investments.

The report urged countries to implement a financial literacy strategy and improve education in schools, highlighting the importance of strong consumer protection frameworks and educating parents.

Only a third of adults are financially literate, according to research published by the OECD last year.

Karen Holland, a teacher and founder of the Gifting Sense financial literacy programme, said parents had an important role in teaching children “powerful and therefore sticky life skills” such as thinking before they buy. “The gold standard is a combination of parents and schools developing their money habits and beliefs,” she added.

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Only 14 of the 38 OECD countries that take part in the headline Pisa tests on maths, reading and science participate in the financial literacy assessments.

The UK is one of the countries that has opted out, with policymakers arguing it has limited value as most of the variation in pupil performance is explained by maths attainment.

Charities such as the FT’s Financial Literacy and Inclusion Campaign (Flic) and parliamentary groups such as England’s education committee have said financial education needs to be improved and recommended the UK take part in the 2025 assessments.

John Jerrim, professor of education and social statistics at University College London, said the UK had opted out of the financial literacy assessment to reduce the burden on reluctant schools, creating a “big data gap”.

“We really don’t know enough about financial literacy in this country,” he added. “These are absolutely key skills that kids need to know about.”

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Banking agencies preview FinCEN’s proposed rulemaking

FinCEN to propose new rules on money laundering, whistleblower program

The draft proposal by the Federal Reserve, OCC, FDIC and National Credit Union Administration would align each agency’s Bank Secrecy Act compliance program requirements with changes FinCEN is planning as the result of passage of the Anti-Money Laundering Act in 2021. According to the draft, FinCEN’s proposed program rule would clarify supervisory expectations regarding how banks should identify, evaluate and document their money-laundering, terrorist financing and other illicit finance activity risks, including requiring banks to consider the AML/CFT national priorities. However, banks are not expected to exclusively focus on the AML/CFT national priorities, as the proposed risk-assessment process would also require consideration of money laundering/terrorist financing and illicit finance activity risks based on the bank’s business activities, including “distribution channels” and “intermediaries,” as well as a review of BSA reports filed by the bank.

The proposed rule would also add the requirement the AML/CFT program be “effective” and “risk-based” to the current standard and be “reasonably designed.” According to the agencies, the proposed statement of purpose is not intended to establish new obligations separate and apart from the specific requirements set out for banks or impose additional costs or burdens, but to summarize the goal that banks AML/CFT programs are “operating in an effective, risk-based and reasonably designed manner.”

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The University of Michigan Consumer Sentiment Index decreased 1.2% in June compared to the month prior, landing at 68.2, according to final results for the month.

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Personal income increased 0.5%, or $114.1 billion, in May, the Commerce Department said.

Supreme Court overturns legal test for deferring to agency interpretations

In a 6-3 decision, the U.S. Supreme Court overturned the longstanding “Chevron deference,” which instructs courts to defer to a federal agency’s reasonable interpretation of an ambiguous statute.

ABA urges FinCEN to reevaluate BOI collection burden on banks

FinCEN proposes new requirements for financial institution AML/CFT programs

FinCEN proposed a new rule to require financial institutions to establish and maintain “effective, risk-based and reasonably designed” AML/CFT programs with certain minimum components, including a mandatory risk assessment process.

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Elektrostal Localisation : Country Russia , Oblast Moscow Oblast . Available Information : Geographical coordinates , Population, Area, Altitude, Weather and Hotel . Nearby cities and villages : Noginsk , Pavlovsky Posad and Staraya Kupavna .

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Elektrostal Demography

Information on the people and the population of Elektrostal.

Elektrostal Population	157,409 inhabitants
Elektrostal Population Density	3,179.3 /km² (8,234.4 /sq mi)

Elektrostal Geography

Geographic Information regarding City of Elektrostal .

Elektrostal Geographical coordinates	Latitude: , Longitude: 55° 48′ 0″ North, 38° 27′ 0″ East
Elektrostal Area	4,951 hectares 49.51 km² (19.12 sq mi)
Elektrostal Altitude	164 m (538 ft)
Elektrostal Climate	Humid continental climate (Köppen climate classification: Dfb)

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Elektrostal Sunrise and sunset

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Day	Sunrise and sunset	Twilight	Nautical twilight	Astronomical twilight
23 June	02:41 - 11:28 - 20:15	01:40 - 21:17	01:00 - 01:00	01:00 - 01:00
24 June	02:41 - 11:28 - 20:15	01:40 - 21:16	01:00 - 01:00	01:00 - 01:00
25 June	02:42 - 11:28 - 20:15	01:41 - 21:16	01:00 - 01:00	01:00 - 01:00
26 June	02:42 - 11:29 - 20:15	01:41 - 21:16	01:00 - 01:00	01:00 - 01:00
27 June	02:43 - 11:29 - 20:15	01:42 - 21:16	01:00 - 01:00	01:00 - 01:00
28 June	02:44 - 11:29 - 20:14	01:43 - 21:15	01:00 - 01:00	01:00 - 01:00
29 June	02:44 - 11:29 - 20:14	01:44 - 21:15	01:00 - 01:00	01:00 - 01:00

Elektrostal Hotel

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	Located next to Noginskoye Highway in Electrostal, Apelsin Hotel offers comfortable rooms with free Wi-Fi. Free parking is available. The elegant rooms are air conditioned and feature a flat-screen satellite TV and fridge...	from
	Located in the green area Yamskiye Woods, 5 km from Elektrostal city centre, this hotel features a sauna and a restaurant. It offers rooms with a kitchen...	from
	Ekotel Bogorodsk Hotel is located in a picturesque park near Chernogolovsky Pond. It features an indoor swimming pool and a wellness centre. Free Wi-Fi and private parking are provided...	from
	Surrounded by 420,000 m² of parkland and overlooking Kovershi Lake, this hotel outside Moscow offers spa and fitness facilities, and a private beach area with volleyball court and loungers...	from
	Surrounded by green parklands, this hotel in the Moscow region features 2 restaurants, a bowling alley with bar, and several spa and fitness facilities. Moscow Ring Road is 17 km away...	from

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U.S. Department of the Treasury

Treasury targets shadow banking network moving billions for iran’s military.

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning nearly 50 entities and individuals that constitute multiple branches of a sprawling “shadow banking” network used by Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) and Islamic Revolutionary Guard Corps (IRGC) to gain illicit access to the international financial system and process the equivalent of billions of dollars since 2020. MODAFL and the IRGC engage in several commercial revenue-generating activities, most notably the sale of Iranian oil and petrochemicals.

Networks of Iranian exchange houses and dozens of foreign cover companies under their control enable MODAFL and the IRGC to disguise the revenue they generate abroad that is then available to use for a range of MODAFL and IRGC activities, including the procurement and development of advanced weapons systems such as unmanned aerial vehicles. This revenue also supports the provision of weapons and funding to Iran’s regional proxy groups, including Yemen’s Houthis, who continue a campaign of reckless attacks on global shipping, as well as the transfer of UAVs to Russia for use in its war of aggression against Ukraine.

“The United States is taking action against a vast shadow banking system used by Iran’s military to launder billions of dollars of oil proceeds and other illicit revenue,” said Deputy Secretary of the Treasury Wally Adeyemo. “We have sanctioned hundreds of targets involved in Iran’s illicit oil and petrochemical-related activity since President Biden took office, and we will continue to pursue those who seek to finance Iran’s destabilizing terrorist activities. We continue to work with allies and partners, as well as the global financial industry, to increase vigilance against the movement of funds supporting terrorism.”

MODAFL is responsible for development, production, funding, and logistics for all of Iran’s defense industries. Iran’s budget allots billions of dollars’ worth of Iranian oil to the Iranian armed forces to sell abroad in order to supplement their budgets. MODAFL subsidiaries manufacture advanced conventional weapons, including ballistic missiles and unmanned aerial vehicles, which are used by Iran’s military, including the IRGC, or exported to other countries such as Russia, or partner groups such as the Houthis.

Today’s action is being taken pursuant to the counterterrorism authority in Executive Order (E.O.) 13224, as amended. OFAC designated MODAFL pursuant to E.O. 13224 on March 26, 2019 for assisting, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of, Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). The IRGC-QF was designated pursuant to E.O. 13224 on October 25, 2007 for providing support to multiple terrorist groups.

Previously, in March 2023 , OFAC took action against several dozen entities that operated as part of an Iranian shadow banking network that moved billions of dollars’ worth of petrochemical sales proceeds for the Iranian regime, and the Financial Crime Enforcement Network (FinCEN) issued an advisory in May 2024 outlining the IRGC’s methods for raising and moving funds to support its terrorist partners and proxies, including Hamas, Hizballah, and the Houthis.

IRANIAN SHADOW BANKING

Shadow banking networks are multi-jurisdictional illicit finance systems which grant sanctioned Iranian entities access to the international financial system and obfuscate their trade with foreign customers. As depicted in the chart below, the MODAFL Supply Division uses exchange houses in Iran that manage numerous cover companies registered in permissive jurisdictions such as Hong Kong or the United Arab Emirates (UAE) to launder the revenue generated through foreign commercial activity, including oil sales conducted by U.S.-designated MODAFL affiliate Sahara Thunder , into clean foreign currency. The same cover companies, when directed by MODAFL and the exchange house managers, use the laundered foreign currency to procure weapons components and other materiel on the international market.

SEYYED MOHAMMAD MOSANNA’I NAJIBI AND SADAF EXCHANGE

Seyyed Mohammad Mosanna’i Najibi ( Najibi ) is an Iranian-Turkish money-changer who, since at least 2019, has managed several currency exchange businesses in Iran and Türkiye in coordination with the MODAFL Supply Division for the purpose of bypassing U.S. and European sanctions on Iran. Najibi carries out most of his business for the MODAFL Supply Division through the Iranian branch of his business, Seyyed Mohammad Mosanna’i Najibi & Co. Company , commonly known as Sadaf Exchange . Najibi works with the MODAFL Supply Division to establish cover companies and accounts for MODAFL, hold MODAFL’s money in accounts outside of Iran, transport hard currency across borders, retrieve revenue from sale of Iranian oil, and transfer funds to suppliers of MODAFL, Iran’s Armed Forces General Staff (AFGS), and the IRGC. Since at least 2020, Najibi has worked directly with top MODAFL officials to execute transfers of U.S. dollars to bank accounts in the People’s Republic of China, the Marshall Islands, Türkiye, and the UAE on their behalf, including transfers related to MODAFL cargo shipments. Najibi has also provided direct financial assistance to the IRGC-Qods Force (IRGC-QF) through the sale of gold in Türkiye for U.S.-designated IRGC-QF official Behnam Shahriyari .

Since 2020, Sadaf Exchange enabled the MODAFL Supply Division to conduct euro-, Emirati dirham-, and dollar-denominated transfers worth hundreds of millions of dollars to other MODAFL cover companies and exchange houses, including to Sahara Thunder and U.S.-designated Ansar Exchange . Najibi also owns a Türkiye-based currency exchange company, Golden Stars Kiymetli Madenler Tekstil Sanayi Ticaret Limited Sirketi ( Golden Stars ), which provides exchange services in conjunction with Sadaf Exchange. Through Golden Stars, Najibi conducts cash and gold transfers between Türkiye and Iran for the MODAFL Supply Division. In 2023, Najibi facilitated cash transfers worth tens of millions of dollars for MODAFL through Golden Stars.

Seyyed Mohammad Mosanna’i Najibi, Seyyed Mohammad Mosanna’i Najibi & Co. Company, and Golden Stars Kiymetli Madenler Tekstil Sanayi Ticaret Limited Sirketi are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, MODAFL.

OMID SEPAH EXCHANGE COMPANY & HEKMAT IRANIAN EXCHANGE HOUSE

Omid Sepah Exchange Company ( Omid Sepah ) and Hekmat Iranian Exchange & Foreign Currency Services Company ( Hekmat Iranian ) are Tehran-based currency exchange businesses controlled by U.S.-designated Bank Sepah that use foreign cover companies to engage in shadow banking transactions on behalf of the MODAFL Supply Division, in collaboration with Najibi and Sadaf Exchange. Since 2020, Omid Sepah and Hekmat Iranian coordinated the transfer of tens of millions of dollars on behalf of the MODAFL Supply Division using numerous shell companies outside of Iran.

Omid Sepah Exchange Company and Hekmat Iranian Exchange & Foreign Currency Services Company are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, MODAFL.

COVER COMPANIES USED FOR MODAFL TRANSFERS

OFAC is also designating the following 27 cover companies based in Hong Kong, the United Arab Emirates (UAE), and the Marshall Islands that are controlled by Najibi and used to obfuscate the MODAFL Supply Division’s international financial activity:

Gainon Co., Limited
Meishur Limited
Relan Limited
Roslami Limited
Turpami Limited
Suesian Co. Limited
Burren Co., Limited
Saisaipen Co., Limited
Xaster Co., Limited
Delaite Trading Co. Limited
Jocwa Co. Limited
Tenglan Limited
Kuwan Co., Limited
Jiankang Food Limited
Sino Trade Limited
Fengxian International Trading and Services Co. Limited
Copezzi Industrial Co. Limited
Caregis Trading HK Limited
Lzmar Trading Limited
Cherry Star Co. Limited

United Arab Emirates:

Lyoned Trading L.L.C.
Atvantic Goods Wholesalers L.L.C.
Anvex Trading L.L.C.
Sahil Mahaba Trading L.L.C.
Nasir Sadiqat General Trading L.L.C.
Brighten Star FZE

Marshall Islands:

Hermex International Corporation

These companies have collectively moved hundreds of millions for dollars’ worth of revenue for MODAFL related to oil and petrochemical sales or foreign currency exchange operations. Between June 2022 and 2023, MODAFL used Atvantic Wholesalers L.L.C., Brighten Star FZE, and Gainon Co., Limited to make transfers worth nearly $10 million through Ansar Exchange. In September 2023, Meishur Limited transferred approximately $30 million to U.S.-designated Sepehr Energy Jahan Nama Pars Company , a key entity overseeing the foreign sale of oil on behalf of Iran’s AFGS.

Between May and October 2023, Meishur Limited, Turpami Limited, and Xaster Co., Limited transferred approximately $40 million collectively to Sahara Thunder on behalf of MODAFL. In October 2023, Caregis Trading HK Limited and Lzmar Trading Limited received $8 million and $15 million each from Sahara Thunder.

Kuwan Co., Limited has used the international financial system to make hundreds of transfers totaling over $30 million to numerous companies, including U.S.-designated unmanned aerial vehicle (UAV) parts suppliers Skyline Advanced Technologies SDN BHD and Nava Hobbies SDN BHD and transfers totaling approximately $500,000 to U.S.-designated Iranian military procurement front company FY International Trading Co., Limited . In January 2022, Cherry Star Co. Limited transferred approximately 15 million euro to the IRGC Oil Command on behalf of MODAFL.

The above entities are all being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, MODAFL.

ASADOLLAH SEIFI NETWORK

Iranian money-changer Asadollah Seifi ( Seifi ) continued his involvement in sanctions evasion schemes following his March 26, 2019 designation pursuant to E.O. 13224 for providing material support to a vast currency exchange network overseen by Ansar Exchange, which supported the IRGC and MODAFL. Seifi conducts sanctions evasion activities in support of the MODAFL Supply Division in Emirati dirham (AED) through UAE-based shell companies. On instruction from the MODAFL Supply Division, Seifi establishes shell companies and accounts for MODAFL’s use, converts or transports foreign currency using couriers, retrieves revenue from oil and petrochemical sales through cover companies, and holds MODAFL Supply Division money in cover company accounts outside of Iran, often in the UAE. Seifi also transfers foreign currency to suppliers of the IRGC and MODAFL and directly to the IRGC-QF at the behest of the MODAFL Supply Division.

Today, OFAC is re-designating Asadollah Seifi pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, MODAFL.

Five shell companies based in the UAE that are controlled by Seifi and used by him to obfuscate MODAFL’s financial activity are also being designated today:

Mufflin Trading L.L.C.
Colwich Trading L.L.C.
Long Worth Goods Wholesalers L.L.C.
Bethesda Industrial Solvents Trading
O N C U Trading L.L.C.

Between 2021 and 2022, Mufflin Trading L.L.C., Long Worth Goods Wholesalers L.L.C., and Bethesda Industrial Solvents Trading were used to transfer collectively nearly 100 million AED to the Iran-based, MODAFL-affiliated exchange houses Omid Sepah, Hekmat Iranian, Sadaf Exchange, and Ansar Exchange.

RAMIN JALALIAN NETWORK

Ramin Jalalian ( Jalalian ) is an Iranian currency exchanger and businessman who has managed several currency exchange businesses in Iran and the UAE in coordination with the MODAFL Supply Division for the purpose of bypassing U.S. and European sanctions on Iran. At the instruction of the MODAFL Supply Division, Jalalian establishes cover companies and accounts for MODAFL, holds MODAFL’s money in accounts outside of Iran, converts or transports currency across borders, retrieves revenue from sales of Iranian oil, and transfers funds to suppliers of MODAFL and the IRGC. Jalalian has worked directly with MODAFL to launder tens of millions of AED and euros through bank accounts in the UAE and Switzerland by using sales of gold as a pretext for conducting many large cross-border transactions.

Two shell companies based in the UAE and one based in Hong Kong, controlled by Jalalian and used to obfuscate MODAFL’s financial activity, are also being designated today:

Piera Global Trading L.L.C.
Astoria Star Heavy Equipment Trading L.L.C.
Golden Bronze Limited

Between 2020 and 2023, Jalalian used his front companies to conduct transfers worth over $30 million in AED, euro, and dollars, including transfers linked to Iranian oil and petrochemical sales directed by MODAFL, frequently in collaboration with Omid Sepah, Hekmat Iranian, or Ansar Exchange.

Ramin Jalalian and the above entities are all being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, MODAFL.

SIAVASH NOURIAN NETWORK

Siavash Nourian ( Siavash ) is the owner of Iranian exchange house Siavash Nourian & Co. Exchange ( Nourian Exchange ), which is used by the MODAFL Supply Division for a wide range for foreign currency activities, including establishing cover companies and accounts, holding MODAFL’s money in cover accounts outside of Iran, converting foreign currency, transporting foreign currency using couriers, retrieving revenue from MODAFL’s oil and petrochemical sales, and transferring currency to suppliers of MODAFL and the IRGC.

Three shell companies based in Hong Kong and controlled by Nourian Exchange for the purpose of conducting foreign currency transfers on behalf of MODAFL are also being designated today:

Kumu Limited
City Base Group Limited
Net Trading Co. Limited

Between August and November 2023, Nourian Exchange facilitated numerous transfers worth tens of millions of dollars on behalf of the MODAFL Supply Division and the IRGC Oil Command using multiple currencies, including Chinese yuan, U.S. dollars, and AED. In October 2023, City Base Group Limited and Net Trading Co. Limited received approximately $30 million from Sahara Thunder for the MODAFL Supply Division through Nourian Exchange.

Siavash Nourian, Siavash Nourian & Co. Exchange, and the above entities are all being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, MODAFL.

SEYYED REZA MIR MOHAMMAD ALI & ATROPARS COMPANY

Seyyed Reza Mir Mohammad Ali ( Mir Mohammad Ali ) is a key confidant of the MODAFL Supply Division and the CEO and owner of Iran-based Atropars Company , also known as Atropars Exchange, another exchange house that the MODAFL Supply Division uses to conduct financial activity outside of Iran. Mir Mohammad Ali establishes cover companies and financial accounts for the MODAFL Supply Division’s use, holds MODAFL funds in cover accounts outside of Iran, conducts foreign currency exchange, transports foreign currency to and from Iran using cover companies and couriers, and transfers foreign currency to suppliers of the IRGC and MODAFL. Mir Mohammad Ali’s annual activity for the MODAFL Supply Division, conducted through Atropars Exchange, amounts to tens of millions of dollars. Mir Mohammad Ali and Atropars Exchange control a number of cover companies that are used to support the MODAFL Supply Division. In 2022, Hong Kong-based companies controlled by Mir Mohammad Ali transferred over 15 million euros in oil and petrochemical sales revenue for the MODAFL Supply Division. Between March 2022 and March 2023, Atropars Exchange processed the equivalent of over $40 million in euros in incoming and outcoming transfers.

Seyyed Reza Mir Mohammad Ali and Atropars Company are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, MODAFL.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here . For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here .

Click here for more information on the individuals and entities designated today.

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Russian attack on southeastern Ukrainian town kills seven, official says

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Assignment: An assignment is the transfer of an individual's rights or property to another person or business. For example, when an option contract is assigned, an option writer has an obligation ...
Money and Banking
The financial crisis of 2007-8 has already revolutionized institutions, markets, and regulation. Wright's Money and Banking V 2.0 captures those revolutionary changes and packages them in a way that engages undergraduates enrolled in Money and Banking and Financial Institutions and Markets courses.
Loan Participation Vs Assignment
Assignment. The terms "loan participation" and "assignment" are often used in the banking industry. Both terms refer to the transfer of a loan's rights and payments between two financial institutions. We'll look at what each term means and how they differ from each other. Loan participation has long been a common form of loan transfer.
Banking Fundamentals
Banking Fundamentals - Types of Banks. Below are the most common types of banks in the United States: 1. Commercial banks. Commercial banks are the most common type of bank. They provide various services such as providing business loans, accepting deposits, and offering basic investment products to both individuals and private businesses.
Banking assignment Flashcards
Study with Quizlet and memorize flashcards containing terms like The purpose of a financial system is to connect borrowers with people and groups who have unused money (savers)., The interest rate for those loans banks make to one another is called what?, The Federal Reserve (the Fed) is the bank that U.S. banks use. It also sets certain rules for how banks in the U.S. operate. It is a "quasi ...
PDF Making Finance Personal
ing assignment check at two weeks to make sure they are on task. • When I first started using this assignment, I let students use bank statements, websites, spreadsheets, and phone apps to track expenses. I saw a considerable difference in proficiency between those who used pencil and paper and those who used electronic methods.
Economics of Money and Banking
Financial Evolution: Indirect Finance to Direct Finance • 13 minutes; Banking Evolution: ... Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the ...
Assignment in Finance: Definition, Mechanisms, and Applications
Assignment, a fundamental concept in finance and law, involves the transfer of rights or obligations from one party to another. In financial markets, it plays a crucial role in options trading, while in broader business contexts, it encompasses various property transactions. This article provides a comprehensive overview of assignment, covering ...
Banking and Financial Institutions
There are 5 modules in this course. The purpose of this course is to provide you with a basic understanding of the connections between money, the financial system, and the broader macroeconomy. We will examine the economics of modern financial institutions (e.g. banks), including how they are organized, the products and financial services they ...
PDF Practical Money Skills Workbook
Workbook. Smart Tips for Better Money Management. tting StartedTable of ContentsWhether you are just starting out on your own or you've been managing your own money for years, basic budgeting, saving and credit skills can help you gain con. rol over your financial future. This workbook is designed to help you learn basic budgeting skills and ...
299+ Engaging Banking And Finance Project Topics
Explore a complete collection of 299+ stunning banking and finance project topics for insightful academic pursuits and in-depth research ... Unlock the mysteries of finance effortlessly with our expert-guided Finance Assignment Help! Get ready to ace your finance projects with precision and clarity. Contribution Of Banking And Finance In A ...
Assignment On Banking and Financial Services
Assignment on Banking and Financial Services - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Banking and Financial services industry has grown by leaps and bounds. The finance industry encompasses a broad range of organizations that deal with the management of money. The primary operations of banks include: Keeping money safe while also ...
Banking and Finance assignment
In this part of the assignment I will be discussing the operation and usefulness of section 36 of the 'Financial services (banking reform) act 2013'. The 'FSA 2013 (banking reform) section 36 is put in place for when an offence takes place which causes any sort of financial institution to fail.
50 Questions on Money, Banking and Finance with Answers
Partial preview of the text. Download 50 Questions on Money, Banking and Finance with Answers | ECON 353 and more Economics Exams in PDF only on Docsity! ANSWER OUTLINE ECONOMICS 353 L. Tesfatsion/Fall 07 MIDTERM EXAM 1: 50 Questions (1 Point Each) 27 September 2007 Please write on side 1 of your answer bubble sheet your FIRST AND LAST NAME ...
Banking and Finance Assignment
Banking and Finance Assignment - Free download as PDF File (.pdf), Text File (.txt) or read online for free. This document provides an analysis of the accessibility of the financial sector in Swaziland. It begins with an introduction that discusses the importance of effective financial systems for economic development. It then provides an overview of Swaziland's economy and financial landscape ...
Banking and finance group assignment 1.docx
SUNWAY COLLEGE JOHOR BAHRU MPU 3312 (VU) BANKING & FINANCE GROUP ASSIGNMENT 1 DUE DATE: 22 April 2020 (Tues Class) Instructions: · Type your assignment. · Marks will be awarded for points and good presentation. · NO marks will be awarded if any part of this assignment is found to be copied directly from printed materials or from another student. · Complete this cover sheet and attach it to ...
Group Assignment banking and finance
1. There are 3 pages in this assignment including the cover page. 2. This Group Assignment will contribute 55% to your final grade. (35% Written Report. and 20% Oral Pr esentation) 3. This Assignment must be completed in groups. The written report is to be submitted in. soft copy on the due date of the Assignment.
⇉Banking and finance assignment Essay Example
Banking and finance assignment. Provide a concise summary of the causes of the 1997 Asian financial crisis and he resulting damages. Students are advised to link concepts taught in class to their answer. Strong growth was typical of economies in the South East Asian region in the years leading up to the currency crisis (Mimicking 1997).
Teens lack financial literacy and maths skills for digital economy
Teenagers in rich countries lack the financial literacy and maths skills needed to prepare them for the digital economy, according to an OECD report. Despite growing numbers opening bank accounts ...
Banking agencies preview FinCEN's proposed rulemaking
According to a draft proposal by banking regulators released on June 20, the Financial Crimes Enforcement Network is planning to publish a program rule notice of proposed rulemaking. If finalized, financial institutions would be required to amend their anti-money laundering and countering the financing of terrorism programs to incorporate AML ...
Bank of England says better risk management needed in private equity
The UK banking sector had the capacity to support households and businesses, even if economic and financial conditions were to be substantially worse than expected, the FSR said.
Elektrostal Map
Elektrostal is a city in Moscow Oblast, Russia, located 58 kilometers east of Moscow. Elektrostal has about 158,000 residents. Mapcarta, the open map.
Kapotnya District
A residential and industrial region in the south-east of Mocsow. It was founded on the spot of two villages: Chagino (what is now the Moscow Oil Refinery) and Ryazantsevo (demolished in 1979). in 1960 the town was incorporated into the City of Moscow as a district. Population - 45,000 people (2002). The district is one of the most polluted residential areas in Moscow, due to the Moscow Oil ...
Flag of Elektrostal, Moscow Oblast, Russia : r/vexillology
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Elektrostal, Moscow Oblast, Russia
Elektrostal Geography. Geographic Information regarding City of Elektrostal. Elektrostal Geographical coordinates. Latitude: 55.8, Longitude: 38.45. 55° 48′ 0″ North, 38° 27′ 0″ East. Elektrostal Area. 4,951 hectares. 49.51 km² (19.12 sq mi) Elektrostal Altitude.
Thailand is now the Myanmar junta's favored banking destination as
Siam Commercial Bank is among the Thai banks that have played a "crucial role" in the shift, the report found. In 2022, the bank facilitated just over $5 million in transactions relating to ...
Treasury Targets Shadow Banking Network Moving Billions for Iran's
WASHINGTON — Today, the Department of the Treasury's Office of Foreign Assets Control (OFAC) is sanctioning nearly 50 entities and individuals that constitute multiple branches of a sprawling "shadow banking" network used by Iran's Ministry of Defense and Armed Forces Logistics (MODAFL) and Islamic Revolutionary Guard Corps (IRGC) to gain illicit access to the international financial ...
JPMorgan Shuffles Top Private Bank Leaders as Camacho Departs
JPMorgan Chase & Co. tapped Sanoke Viswanathan to oversee its international wealth business, part of a broader leadership shakeup as longtime executive Mike Camacho leaves the firm.
UBS Poaches 10 Bankers From Deutsche Bank, HSBC to Boost Mideast
UBS Group AG is growing its wealth management team in the Middle East with three senior hires from Deutsche Bank AG and HSBC Holdings Plc.. The Swiss bank appointed Ali Khunji from HSBC to take ...
Finance minister says Israel to promote West Bank settlement
Israel's hard-line finance minister said on Thursday that the government would promote West Bank settlements and punitive measures against the Palestinian Authority in response to Palestinian ...