Financial instruments used by the Hungarian SMEs

absorbing the qarz al’hasan deposits by islamic financial instruments (sukuk)

nowadays, because of the economic circumstances of our society, on one hand many persons are eligible to borrow the qarz al’hasan loan and on the other hand there are not sufficient funds to for paying to the qarz al’hasan loan applicants. but the qarz al’hasan bank has been instituted to expand and promote the culture of qarz al’hasan and also to answer the poor’s financial needs in the societ...

Capability-Based Financial Instruments

Every novel cooperative arrangement of mutually suspicious parties interacting electronically — every smart contract — effectively requires a new cryptographic protocol. However, if every new contract requires new cryptographic protocol design, our dreams of cryptographically enabled electronic commerce would be unreachable. Cryptographic protocol design is too hard and expensive, given our unl...

Financial Instruments in Recommendation Mechanisms

Eroding market stability by proliferation of financial instruments

We contrast Arbitrage Pricing Theory (APT), the theoretical basis for the development of financial instruments, with a dynamical picture of an interacting market, in a simple setting. The proliferation of financial instruments apparently provides more means for risk diversification, making the market more efficient and complete. In the simple market of interacting traders discussed here, the pr...

Lifetime Probability Of Default Modeling For Hungarian Corporate Debt Instruments

The paper attempts to provide forecast methodological framework and concrete models to estimate long run probability of default term structure for Hungarian corporate debt instruments, in line with IFRS 9 requirements. Long run probability of default and expected loss can be estimated by various methods and has fifty-five years of history in literature. After studying literature and empirical m...