By M DamodaranYears ago, during an impassioned discussion on banking, especially lending practices, a friend, in a moment of excitement, coined a new word — creditability. The rest of us laughed. Recent developments seem to indicate that he was spot on. Creditability, a combination of creditworthiness and credibility, implying thereby the ability to repay and the willingness to repay, seems to have been a missing ingredient in the decision-making process in several banks. The focus of this piece is, however, not the credibility of the borrower but the credibility of bank boards. Corporate governance theory rests on the foundation that the Board of Directors is the custodian of the interests of all stakeholders. Simply stated, its role, and also its responsibility, is to keep management hon
[unable to retrieve full-text content]As cryptocurrencies continue to make their mark on the financial arena many capital investment firms are looking to bring the power of the blockchain and traditional investment strategies together to give traders more opportunities in an adapting industry Latest Articles in
IN THE Russian business community Sergei Galitsky served as a rare example of a self-made billionaire who rose with relatively little state help and outside the natural-resources trade. He built his retail company, Magnit, from scratch into Russia’s largest network; it has more than 16,000 stores. Rather than moving to Moscow, he kept his headquarters in his hometown of Krasnodar, where he also founded a football club. On February 16th he made a telling exit, announcing he would sell nearly all of his shares in Magnit—29.1%—to VTB, a state bank.That Mr Galitsky (pictured, above) decided to sell is the result of a tough business cycle and some strategic mistakes. More remarkable is that he found a buyer not on the domestic private markets, or from among foreign investors. Selling to a publi
Malaysia's government said Saturday that it has approved a new attempt by a private company to find the wreckage of Malaysia Airlines Flight 370, nearly four years after its disappearance sparked one of aviation's biggest mysteries. The Houston, Texas-based company Ocean Infinity dispatched a search vessel this past week to look in the southern Indian Ocean for debris from the plane, which disappeared March 8, 2014, on a flight from Kuala Lumpur to Beijing with 227 passengers and 12 crew members. The governments of Malaysia, China and Australia called off the nearly three-year official search last January. The Australian Transport Safety Bureau's final report on the search conceded that authorities were no closer to knowing the reasons for the Boeing 777's disappearance, or its exact loca...