Skip to content

Audit - 20. page

Regulatory Reporting requirements

Regulatory Reporting requirements Derivatives are governed by the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000. Derivatives are allowed only under the provisions of these regulations and amendments since, […]

Guidance for Arriving at Fair / Market Value

Guidance for Arriving at Fair / Market Value As a general rule, for an instrument that is actively traded on a recognized public exchange, the price quoted by the exchange […]

Documentation

Documentation This can range from simple customer mandates through to full legal documentation with both banks and customers. The bank’s legal department is responsible for legal agreements depending on what […]

Rate Reasonability

Rate Reasonability The bank’s risk department will perform the rate reasonability process as per the Price Verification Policy of the bank and for any transaction that falls outside the band […]

Position and P&L Reconciliation

Position and P&L Reconciliation This is one of the most important controls on deals position which is carried out by the bank’s risk department / back office. The trader’s net […]

Accounting for Forex and Derivative Transactions

Accounting for Forex and Derivative Transactions Accounting is generally handled by the back office which acts as an intermediary between the treasury business unit and the finance department to ensure […]

Management Action Trigger (MAT)

Management Action Trigger (MAT) MAT represents the management’s tolerance for accepting the market risk related losses on a daily and cumulative month-to-date basis especially on the trading portfolio. The P&L […]