The Regulation of Authorised Deposit Taking Institutions

This volume introduces a number of key concepts in credit risk analysis and the regulation of Deposit Taking Institutions. This volume is part of the Principles of Financial Markets textbook. This volume is not a standalone text and is designed to be read with the additional volumes. The volume is designed to introduce candidates to pertinent issues within Financial markets, in practical terms, employing salient examples to better inform candidates and prepare them for higher level financial studies. This program is developed and maintained by Michael D'Rosario.

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Regulation of ADIs & the Basel Accords

Regulation of ADIs and the Basel Accords


The Regulatory Process

System of Controls and Regulations

Consumer Protections


Responsibilities of the Banking and ADI regulatory agencies

Supervisory Process

Risk-Focused Supervision

Supervisory Rating System

Financial Regulatory Reports

Off-Site Monitoring

Accounting Policy and Disclosure

The Basel Accords

An introduction to the Accords

Basel I

Basel II


The Standardized Approach

The foundational internal ratings based approach methodology

Purchased wholesale receivables

Prudential standards

The Stock Exchanges

Nations of Investors

How Stock Prices Are Determined

Market Strategies


Selling Short


Commodities and Other Futures

The Regulators

"Black Monday" and the Long Bull Market

Pricing share market instruments

The efficient market hypothesis

Weak form efficiency under EMH theory

Semi strong form efficiency under EMH theory

Strong form efficiency under EMH theory

Behavioral finance

Pricing ordinary equity

Dividend Discount Model

Pricing preference equity

Further considerations



Fundamental analysis

Ratio analysis

Current (or working capital) ratio

Cash flow liquidity ratio

Accounts receivable turnover

Number of days' sales in accounts receivable

Accounts receivable turnover

A business insight

A business insight

A Business insight: Uses of technology

A Business insight: financial reporting

Technical analysis

Charting terms and indicators


Types of charts


Breadth Indicators

Price-based indicators

Volume-based indicators

Time Series Forecasting and Analysis

Time series forecasting techniques

What is a time series?

What are a stock and flow series?

What are seasonal effects?

seasonal Forecasting and Analysis

The need for seasonal adjustment

The use of seasonal adjustment techniques

Understanding seasonality

Natural Conditions

Business and Administrative procedures

Social and Cultural behaviour

Trading Day Effects

Moving Holiday Effects

Identifying seasonality

What is an irregular/residual?

What is a trend?

Deconstructing the time series

Additive Decomposition

Multiplicative Decomposition

Pseudo-Additive Decomposition

Choosing a model

Season and irregular charts

Further Investment issues

Market Indices

Convertible Securities

Topic 2 - Banks & Non Bank Financial Institutions