Commercial banks went through various changes and confronted traumas in the last 50 years from World War II with other intermediaries, financial market innovations and regulations. In very recent years, they have increasingly shifted from the traditional mode of financing loans and investments with deposits they collected to becoming brokers that originate loans (Hester 2002). Thereon, they securitize and lodge the loans with other less informed investors, who are correspondingly more vulnerable to risks and losses. Commercial banks today do not face the risk of holding these assets any longer and non-standard requests have evolved because of this shift (Hester). It is believed that non-bank lenders will replace this traditional role and function of commercial banks as sources of funding, but loans may be acquired with less accommodating terms and conditions.
Despite these unprecedented changes in the industry, much of the money has remained in commercial banks. Many clients still…… [Read More]
The definition of usury has evolved over time. The basic premise is that a lender charges a rate of interest that is too high. Today, the standard for usury is defined in law, but initially the practice had no formal definition. Usury was traditionally banned in Christian society, has been criticized in Indian texts, and remains banned in Islamic society. Islamic banking, for example, requires that the lender either earn money from fees, or more commonly the lender exchanges the financing for an equity share, so profit-sharing, as a means of earning money without charging interest (IIBI, 2015)
During the time of King Henry VIII, usury was defined as charging interest. The idea of paying interest was new at the time, as a means of compensating the lender for the risk associated with lending. Interest, however, was not a common concept at least in England before this time. As…… [Read More]
shadow banking system, its role in the subprime mortgage crisis, and failures of regulation within the shadow banking system. The term "shadow banking system" was coined by PIMCO's Paul McCulley in 2007 (Spanos, 2012) and refers to a banking system that includes financial intermediaries that are involved in creating credit across the global financial system, whose functions are not subject to regulatory oversight (Investopedia, 2012). The question has been debated as to whether shadow banking meets the definition of true banking. Given that the two systems perform similar functions, including credit intermediation and maturity transformation, the two should be considered parallel systems (Noeth and Sengupta, 2011).
The term shadow banking is used to describe any provision of credit taking place outside of the traditional deposit-funded lending system. This definition includes institutions that range from pawnbrokers and consumer finance companies to securities dealers as well as firms that issue corporate bonds.…… [Read More]
Diversification of anking Returns Through
Greater Share of Non-Interest
Income and Off-alance Sheet Activities
The banking system was considered to be stable before the great financial crisis of 2007. The banking system faced the worst turmoil during that period due to the evolution of the nature of banking activities. anks started to employ diversify their sources of income. efore 2007, the one and only function of banks was to take deposits and lend money. Diversification of banking returns included many off-balance sheet activities and non-interest incomes into the features of the banks. The extra features are collectively known as shadow banking because of the lack of transparency in it. These activities increased the borrowing and lending and eventually, everyone was in a financial turmoil.
"The advent of shadow banking has fundamentally altered the nature of banking. Where once banks weremainly in the traditional business of taking deposits and making loans,…… [Read More]
190). The Act also helped to create a "too-big-to-fail" mindset (Walter, 2004) that would have profound implications during the economic downturn of 2008 and beyond.
Why did you include this piece of legislation in your list? The Act is described by Sammin (2004) as being "the biggest revision in financial services law since the Great Depression" (p. 653).
iegle-Neal Interstate Banking and Branching Efficiency Act of 1994
What were the problems/conditions giving rise to the legislation? apid consolidations among the nation's banks were creating the potential for diverting needed banking resources from communities (ose, 1997).
What were the major provisions of the Act? The iegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (hereinafter "the Act") contained the following major provisions:
A. Bank holding companies that are adequately capitalized and managed can acquire a bank anywhere in the United States one year after this law is enacted.…… [Read More]
Credit isk Management
Banks are an important part of the economy of any nation. Traditionally, the banks operate as financial intermediaries serving to satisfy the demand of people in need of various forms of financing. Through this, banks enable people to purchase home and businesses to expand. These financial institutions therefore facilitate investment and spending that are responsible for fueling the growth of the economy. In spite of their vital role in the economy, they are nevertheless prone to failure and just like other types of businesses, they also go bankrupt. Unfortunately, the failure of banks can have many and significant implications than any other type of business. As witnessed during the great depression, and in recent times following the global economic crisis and recession, the stability or lack of it in the banking system could trigger economic epidemics that would impact millions of people. With respect to this, it…… [Read More]
Contributions of Mohamed Talaat Pasha Harb to Egypt’s National Development and Banking System
Born on 25th November, 1867 in Cairo’s El- Gammalia, Mohamed Talaat Pasha Harb is considered one among the greatest personalities who contributed to Egypt’s overall national growth and development. He studied art, science, economics, literature, and French. After acquiring a law degree, he commenced his career in the role of translator in the Royal Circuits’ Lawsuits Section, responsible for state- owned farmland. Though favoring free enterprise, he was quick to climb the rungs of the career ladder, landing the position of lawsuits section manager (53-75)3.
His subsequent posts as manager were at various organizations including Kom Ombo Company (a firm that actively reclaimed and sold land) and the Egyptian Real- Estate Company (where he ensured citizens of Egypt held most of the shares). He penned numerous books, including “The Economic Remedy of Egypt and Creating the…… [Read More]
Marketing in the anking Industry
Prescott Valley, Arizona
Abridged Literature Review
While there are many industries in the world that are growing at a rapid pace, one of them is exceedingly doing well. This is because it relies upon the monies and funds of its customers and greatly influences the other industries as well. This is the banking industry. Although a common part of every consumer's life, the banking industry has been growing and developing globally. To understand such growth, the attention instantly goes to the strategic and marketing techniques that have been applied by the people of this industry. Therefore, to gain a thorough and concise outlook of the marketing wonders that have continue to enable the banking industry to succeed at all fronts, the research topic that has been proposed for this research paper is 'marketing in the banking industry'. This topic will not only…… [Read More]
Blockchain technology is an innovative addition to the financial market. What began as a brainchild by the people or person known as ‘Satoshi Nakamoto’, blockchain technology has evolved and become something far greater than most would have imagined. Blockchain technology allows for digital data to be distributed (not copied), allowing for it to become the foundation for a new kind of internet. Businesses have used the technology to implement the use of digital currency like Bitcoin and promote growth of blockchain companies. Some of these successful blockchain companies are: Aeternity, Bitfury, DFINITY, ContentKid, and Blockphase. These companies represent the future of blockchain technology and how far it will go.
Background: What is Block-Chain Technology?
A recent innovation within the financial world, the mastermind behind blockchain technology is ‘Satoshi Nakamoto’. He is the pseudonym for a person or a group of responsible for developing, authoring, making, and deploying bitcoin, bitcoin…… [Read More]
Cyber Attacks on Financial Institutions
The finance industry has continued to receive more targeted and sophisticated cyber attacks from criminals. These criminals often email phishing campaigns to customers which have remained the most successful methods of targeting financial institutions. New innovations in banking, like online and mobile banking, have continued to create new vulnerabilities for cyber thieves. To minimize the efficiency of these attacks, banks have devised improved communication and educational tools for customers, and procedures for quick interventions in the event of an actual attack. However, beyond simply creating harmful software intended to hack online bank details, criminals have found ways to subvert the software and servers owned by prestigious financial institutions to make their phishing campaigns more effective; this technique is known as infrastructure hijacking (Pettersson, 2012).
In 1998, one of the foremost examples of infrastructure hijacking ever discovered is known as The Morris worm. This…… [Read More]
Opportunities to Improve elationship Banking at Al ajhi Bank
In an increasingly globalized and competitive marketplace, many banking professionals today are faced with the need to develop informed and timely responses to changes in consumer demand, as well as fluctuations in the global economy that can have a positive or negative effect on investments. In affluent nations, this need has become especially pronounced as billion-dollar deals are routinely involved, and bankers working relationship banking operations stand to assist banks in attracting and retaining wealthy private and highly fluid commercial enterprises as long-term clientele. The enormous amounts of money that are involved make it important to formulate such responses in ways that add value to the banking operation including providing a competitive advantage. In some banks, relationship banking at this level is termed "privilege banking" or "prime account management," but the common feature of these business units is targeting high net…… [Read More]
Terrorist Threat and the Commercial Sector:
Terrorist threat has emerged as one of the major global threats in the 21st Century that has significant impacts on global security. In the past few centuries, the nature and values of terrorism have slowly shifted and resulted in the emergence of different definitions or descriptions of terrorism. These different descriptions have not only been used by scholars but also by governments to broaden the phenomenon to political, judicial, psychosocial, and moral arenas. The differences in definitions of terrorism is attributed to the fact that these attacks are usually characterized by political motivations towards the use or threat of violence, intentional and pre-meditated actions, fear, psychological effects, and asymmetric warfare. The other aspects of these definitions include immorality, social coercion, and reactions. However, terrorist groups and activities continue to pose significant threats to every facet of the modern society including the commercial sector (aman,…… [Read More]
e. no standardization) b) Diamonds: good medium of exchange
Peaches: perishable, differences in quality (i.e. no standardization) d) Grade a Honey: differences in quality (i.e. no standardization), difficult to transport e) Ice in a warm climate: perishable, difficult to store a. Over the long run, what is the primary determinant of the price level? Supply and demand, with price acting as an equilibrator b. Over the long run, what is the primary determinant of inflation?
The supply of money as compared to changes in productivity.
c. How is inflation related to the nominal interest rate?
Expectations of future inflation are one of the key factors in determining the nominal interest rate, the other being the 'core' interest rate, or the inflation-free level at which one is willing to lend money (which differs according to the issuer and associated risk premium).
4. Describe each of the following financial institutions. If it…… [Read More]
The asylum automatically granted under the Swiss constitution was denied for those seeking it for religious reasons. y 1942, only 9,150 foreign Jews were legally resident in Switzerland, an increase of just 980 since 1931. It was the Swiss government that requested the German government to help it identify Jews by stamping all Jewish passports with a prominent letter "J," following the Nuremberg acts in 1935. "y 1942, acting at the behest of Switzerland's establishment and the majority of its people, its authoritarian police apparatus was dedicated to keeping the country 'pure' and to saving it from being 'overrun with Jews'." Until 1942, the working Jewish community in Switzerland was forced by the government to support Jewish refugees.
The other side of the German interest in Switzerland's banks was related to the business of Germany and the looting of conquered countries. y 1941, Germany had exhausted all of its foreign…… [Read More]
Video Tape and Disc ental
Health and Personal Care Stores
Table 2: Comparisons of Most isky Small Business (BizStats.com, cited by Telberg, 2003)
An Engine of Economic Growth
More and more, Craig, Jackson and Thomson (2007) argue, policymakers perceive the small business sector "as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs." These authors stress that encouraging lending to small business purports the Small Business Administration's (SBA's) primary policy objective of the loan-guarantee program. In their study, Craig, Jackson and Thomson (2007) implement empirical research to focus on SBA-guaranteed lending, utilizing a panel data set of SBA-guaranteed loans, they assess whether SBA-guaranteed lending discernibly impacts local economic performance. Ultimately, these authors cautiously conclude that "There is a positive (although small) and significant relationship between the level of SBA-guaranteed lending in…… [Read More]
English Right of Set-Off and Combination in the Circumstance of Insolvency
The right of combination and set-off, as developed under English law offer a number of safeguards to banks and creditors in general. These rights were expanded under the principles that they were necessary to effect substantial justice and that they would stimulate economic growth and trade. In the following paper, I suggest that the judicial application of these rights has tended to unfairly favor banks at the expense of the individual customer, which may initially stimulate growth by encouraging banks to provide loans, but in the long-term may serve to deteriorate trade, particularly at the international level. Customers in other countries, particularly civil law countries, experience much more risk when they do business with an English bank, and hence may be better off refraining from bringing their enterprises there, or at any rate must be extremely careful in drawing…… [Read More]
Strategic Plan & Analysis of New Commercial Endeavor
Louisville Community Development Bank was set up in the year 1997 as a consequence of a scheme by Louisville mayor Jerry Abramson and a team of business, community and religious leaders to ensure betterment of the Louisville inner city. The Bank's mission is to inspire economic growth with the West End and the Smoke town, Shelby Park and Phoenix Hill localities of Louisville, Kentucky, by offering a range of financial and development resources. (Louisville Community Development Bank from a Home Business to a Million-Dollar Plaza)
Why you have selected the business or department
As the sphere of Banking comes aptly well within my domain knowledge, I would choose for a current venture as that of a local community development bank. Louisville Community Development Bank (LCDB) is a profit oriented, FDIC guaranteed, commercial bank that focuses its functions in the…… [Read More]
Spatial tracking systems that make banks' floor plans and product positioning more effective;
5. Intelligent interactive displays that reflect the interests of the watcher;
6. Use of wireless tablet personal computers (PCs) for client interviewing; and,
7. Videoconference virtual experts for collaborative selling (56).
The same features that characterize high performance banks in their brick-and-mortar operations appear to relate to the use of technology as well, with the best performing banks having identified the optimum mix of services for the markets they serve. For instance, Grasing reports that, "Banks are taking a variety of approaches in implementing technology to make improvements in retail delivery. The methods differ, depending on the bank management's mindset toward the purpose of the software and its valued place in the new business or service delivery processes" (3). The main point in this area is that high performance banks apply technology in ways that help minimize…… [Read More]
Commonwealth Bank of Australia
etail Banking Service
Premium Business Services
Marketing Strategies at CBA
National Australia Bank
Australian and New Zealand Banking Group
Western Pacific Bank
Sustainable Competitive Advantage
One Stop Solution
Commonwealth Bank of Australia
Commonwealth Bank of Australia:
Headquartered in Sydney, Australia, Commonwealth Bank of Australia or CBA is one of the four large banks of Australia. The bank was established in 1911 as a government bank, since then, it has seen tremendous growth. Today, Commonwealth Bank of Australia is a multinational bank with operations across United States of America (USA), United Kingdom (UK), Fiji, New Zeeland and Asia. The bank got privatized in 1996, with issuances of shares worth 1.2 Billion USD in 1991, 1.7 Billion USD in 1993, and 5 Billion USD in 1996. As of January, 2008, Commonwealth Bank of Australia was the second largest Australian listed company…… [Read More]
Asset- Liability Management (banking)
The business system that enables a company to collect, maintain and manage a complete list of all the components possessed by the company is known as asset management. The main objective of the asset management is to enable the company to manage the financial facets of the ownership, estimation of the costs of ownership, record of items on hand, spare parts, replacements, depreciations, maintenance and insurance. (Asset management: www.infobeagle.com) The concept of asset-liability management has different meaning in different fields. Normally the banks and insurance companies employ accrual accounting for practically all their assets and liabilities. They are required to take on the liabilities and to invest on the assets and by so doing the reorganize the assets and liabilities from the hidden potential risks involved. (Asset Liability Management: Contingency Analysis) The objective of the Asset Liability Management Resources is to entail analysis, instruction and guidance…… [Read More]
Commercial lenders lend money with the intention of making money in return; they also carry out a kind of business. But when a government sponsored body lends money, then the reasons behind existence are slightly different. Government usually lends money to those businesses which are facing financing issues. Such businesses are often those which are considered by the government officials as potential enough to bring in economic benefits in the area (Bizcoach, 2013).
Calculating the finance requirement is a great challenge for the managers of the organizations. The institutions which are of complex nature face difficulty in calculating the exact finance requirement. An example of such institution would be capital markets which are quite complex. The sum of external financing depends on the operating budget of the business and on the existing capital resources. If a company has a solid operating budget, then it would be easier to…… [Read More]
How Global Warming Impacts Commercial Insurers
People assume that every person on earth is in danger due to global warming, but what companies and industries have the greatest financial risk? And, which industry will have to assume the risk that others disregarded? Of course, the obvious answer is the insurance industry. Insurance is the gamble by a financier (or underwriter) against the risks that endanger any purchase or venture (Cummins & Venard, 2008). Understanding what global warming threats entail and how they can adversely affect the insurance industry's ability to provide the funds to secure risk is a crucial present and future occupation.
The insurance industry may be the most significant deterrent against the costs that are to be incurred by the possible deleterious environmental effects of global warming (Litan, 2006). However, because of the money to be made and the costs associated others will incur some of…… [Read More]
Management Issues Facing Australian Banks in Asia Today
Today, the Australian banking industry enjoys a high level of confidence among domestic and international investors alike, and the nation has managed to weather the fallout from the Asian financial crisis and Great ecession far better than many of its neighbors, and continues to grow economically. This economic development is due in large part to Australia's increasing commercial trade and cultural exchanges with its largest trading partner, China (Chinese economy, 2016). Not surprisingly, the Australian banking industry has taken advantage of these opportunities to establish an ever-increasing number of branches in China, which have largely experienced positive returns on their investment. Nevertheless, given the fundamental cultural differences and worldviews that exist between consumers in Australia and China, it is the argument of this paper that there are also a number of significant management issues facing Australian banks in Asia in general and…… [Read More]
Corporate Governance and Risk Management
The charity and commercial sectors offer different notions concerning risk management in the corporate arena. Currently, the charity sector is facing various difficulties including a reduction in the funding amount and the need to adopt the use of the ever-changing technology. esides, the communication means is dynamic hence creating emptiness in service provision. However, it embraces new ideas and innovation that prepare the corporate field for the future. Risk management is the process of ensuring that the occurrence of various risks or activities does not cause any financial loss to the entity (Merna, and Al-Thani, 2011). This differs to corporate governance, which refers to the identification and clarification of activities and responsibilities undertaken by various individuals in an organization (rikend, 2014). The commercial sector offers direct and proportional risk management proposals where the corporate management pays some money for it to be covered against the…… [Read More]
U.S. ECONOMIC PEFOMANCES IN THE PAST 5 YEAS
U.S Economic Performance in the past 5 years
Major indicator of healthy state of an economy is the real Gross Domestic Product (GDP) growth rate. The GDP growth rate reveals the performances of an economy. United States is one of the richest country in the world and "has the largest gross domestic product (GDP) in the world." (Jabir, 2009 P. 3171). The country total GDP in 2010 was $14.5 trillion. (World Bank, 2012). Since 2006, the U.S. GDP has continued to fluctuate. Between 2006 and 2007, the U.S. enjoyed the growth in the GDP. In 2006, the country recorded 2.70% point of annual rate in the GDP, and in 2007, the country GDP slightly declined to 1.9%. While the U.S. demonstrated health growth rate between 2006 and 2007, the country recorded negative growth in the GDP between 2008 and 2009. In 2008,…… [Read More]
Accession to WO in 2001, made the China baking industry open to the global competition given in the time frame of 5 years. Chinese banks were notorious for their mounting non-performing loans and low efficiency. Even though Chinese banking industry was injected with procedural reforms and regulatory amendments still it was faced with state ownership dominance and monopolistic controls. herefore the concern facing the banking industry of China was what measures to be adopted for increasing the efficiency of banking industry most importantly the state owned commercial banks that covers the largest share of the market [footnoteRef:1]. [1: CBRC, 'he Non-performing Loan of Major Commercial Banks in China'  3 accessed 19 March 19, 2011]
Since U.S. financial industry is one of the leading in the global market therefore it can provide a guideline to the Chinese emerging banking industry in their way of restructuring and reformation of financial industry.…… [Read More]
Banks have thus the role of distributing these products to their customers. Added to that in the international arena banks are dealing more with derivatives and foreign exchange, making the role of the bank far more important in the overall well being of the economy. Banks are diversifying and redefining themselves as trading, banking and service institutions. The banks are multifunctional and are known by various terms like the 'clearing bank' in UK, 'Commercial banks' and 'Investment banks' or 'Merchant banks'. Banks are thus redefining themselves to suit the wider rage of operation sand services offered. (Cranston, 1997, p. 3)
2. Globalization of banking sector
Globalization is a phenomenon that has invaded all industries and human life. The changes that have come about after the break down of the cold war and the new social interaction between nations have affected the financial sector as well. Globalization has removed restrictions for…… [Read More]
These tasks allowed me to use the financial analysis skills I gained during the course of my education. I was able to uncover errors that were being made and alert my superiors so that the problem could be rectified.
The experience was valuable for a couple of reasons. For one, it provided me with a framework for the functional application of financial analysis. I learned much by poring through both the financial and managerial accounting figures. I focused on determining efficiencies, and was successful in making improvements in small ways.
I gained considerable experience in front line business as well. This acts as a complement to my academic background, because it puts that background into perspective. At Ming Feng, I gained a real appreciation for the way business works in the real world. It was a step into the old Hong Kong for me, away from the glass towers, but…… [Read More]
e-Broking industry and how Macquarie bank can capitalize on it. It has 3 sources.
Online banking have been a phenomenon a few years back but today, the new trend is the inclusion of e-broking a concept that is being accepted by most of the online customers as ideal and convenient. Macquarie is one such firm that endeavors to exploit the opportunities that exist in this industry and aims to recruit and secure a market share that rivals its competitors.
Opportunities and threats
Most of these broking firms specialize in financial services that are similar to the offline brokerage companies. These include product lines like "ancillary services such as equity research, real-time quotes, news and market data, analytical tools, and alert systems which send a message to the customer's PC, pager or mobile phone when a particular share price has reached a trigger level." [Evans, 2000]. Macquarie is no different from…… [Read More]
They have a moral obligation to the South African people in this area for many reasons. First, they have an obligation to make certain that they can participate in the global economy to give their citizens the same chances for advancement as other nations. Secondly, they have a moral obligation to do everything possible to keep their citizens safe.
When one discusses the topic of security in Information and Communication Technology (ICT), much of the discussion focuses on the technology itself. Currently, the South African banking industry is attempting to establish standards that represent best practices in information security (Tshinu, Botha, and Herselman, 2008). These measures currently focus on the technological aspects of information security. However, the development of industry-wide best practices must take all sources of vulnerability into consideration, including the moral and ethical responsibility to keep information safe.
Therefore, the development of best practices cannot ignore the human…… [Read More]
Improper Foreclosure and Mortgage Practices in the Banking Industry
Efficient Market Hypothesis
Real Estate Bubble
Overview on the Value of Banks
Arguments against Financial Intermediaries
This research paper aims to shed light into what led to the global financial collapse that, for the most part, began in the U.S. housing market and the ethical implications that followed. Many researchers agree that the primary drivers that led to the real estate crisis was the lifting of the Glass Steagall Act, the fostering of sub-prime lending, and the creation of derivatives and credit default swaps which were used as complex financial instruments. This offered the big five banks an entire new range of operating opportunities. All of these financial tools were justified by the efficient market hypothesis and as a consequence provide evidence for the lack of a truly efficient market. As a result of the financial…… [Read More]
Pursuing an MS in Finance is the first step toward beginning the rest of my life. I am excited to be this close to graduating from college and taking the next step, entering graduate school. I am pleased about moving closer to launching my career and about exploring the possibilities that lie ahead. This Statement of Purpose discusses my progress to this point and my plans for the future, and considers how an MS in Finance will help me achieve my goals.
Because I understand that a Masters degree does not automatically qualify me for career advancement, I want to pursue realistic goals, and that includes personal satisfaction. Whenever I have considered my long-term educational plans, I always thought in terms of a Masters degree, and possibly even a doctorate. So obtaining a masters degree will satisfy one long-term goal and put me in position to pursue another…… [Read More]
Company Culture and Strategic Orientation of Santander Bank
The general thrust in today's banking industry is either toward strategic expansion or eventual merger under the auspices of another bank's strategic expansion. As one of the top-tier performers and holders of capital in the financial industry and as the single largest banking entity in the Eurozone, Banco Santander finds itself in the former strategic category. As the discussion hereafter will show, Santander continues to grow even in spite of the recession that has crippled so many European banks and lending institutions. As the discussion here shows, this strategic orientation continues to define actions and initiatives taken by Santander.
The company culture at Santander is sharply defined according to the age, prestige and traditionalism in place at the bank. As one of the older and larger-scaled banks in Europe, and in the world at large, Santander has a highly ingrained…… [Read More]
I believe that repealing Glass-Steagall was a mistake. There are several reasons for this, not the least of which is the critical, fundamental difference between investment banking and retail or commercial banking. But the protections that Glass-Steagall put into place guarded against issues that were relevant in the 1930s but never stopped being relevant. The financial crisis of 2007-2009 is strong evidence that the need to protect against commercial banking volatility is more important that the need to allow investment banks to \"innovate\". This paper will illustrate the case that repealing Glass-Steagall was a mistake.
It is important to understand the environment in which Glass-Steagall was passed in order to understand the merits of the Act, and evaluate whether it stands the test of time and should have been left in place. Prior to Glass-Steagall, the US economy was subject to a multitude of economic shocks. Under…… [Read More]
Independent Commission's recommendations satisfy many of the criteria specified in the Saunders-Walter paper. However, many others are not satisfied, and many people feel as though any fix based on the IC recommendations would only represent a partial fix. This is precisely where the recommendations will eventually fail the UK banking sector completely and will not allow for the complete isolation of the individual retail banking customers from the downside risk associated with commercial and investment banking.
First of all, the IC recommendations call for structural separation of the retail banks from the investment and commercial banking sectors (ICB, 2011). This should help to isolate these retail banks from potential financial crisis or collapse if the commercial or investment banking sectors fail or crash themselves. Tis is similar to what the U.S. did after 1933 when they isolated the commercial and private banking sectors to insulate them from financial ruin. Europe…… [Read More]
People's United Bank
Topic Using information proxy statement People's United Bank, New England Evaluate monitoring potential firm's Board Directors Identify strengths weaknesses board structured, ethical concerns People's
The People's United Bank, New England:
Evaluating the monitoring potential of the firm's Board of Directors, strengths and weaknesses of how the board is structured, and ethical concerns
The People's United Bank of New England offers conventional consumer banking. It also offers brokerage, financial advisory services, investment management services and life insurance through People's Securities, Inc.; equipment financing through People's Capital and Leasing Corp. And People's United Equipment Finance Corp; and other insurance services through the People's United Insurance Agency (About, 2011, People's United). It is not unusual for a bank to offer a wide range of financial services today. In 1933, the Glass-Steagall Act forced a separation between the commercial banking and financial services industry, but the Act was repealed in 1999.…… [Read More]
Islamic Maketing Stategy
As the population of Muslims is inceasing ove time, thee is also an inceased demand of the intoduction of Islamic pinciples in diffeent sectos. One of these sectos that have seen a geat deal of Islamization lately is the maketing secto. Muslims now want a maketing system that is in accodance with the laws of Shaiah. One of the most pojected examples of this is the intoduction of Islamic banking to povide altenate poducts and sevices to the Muslim customes. Many eseaches and studies have been caied out to see what the esponse of the Islamic maketing stategies has been ove the yeas. In this pape, we shall fist look at in detail what is actually meant by the Islamic maketing stategy and how the Islamic laws petaining to business diffe fom the conventional laws. We shall then look at how these stategies have been adopted by…… [Read More]
Strategic Perspectives Sberbank
Over the last several years, the banking industry in Russia underwent a major transformation. As the traditional institutions of the past, have been evolving into global financial centers. This is because they are reaching out to new demographics of customers, in an effort to participate in the rapid growth that is taking place throughout the former Soviet Union. In the case of Sberbank, they have been taking their traditional banking functions and augmenting them with international financing opportunities. A good example of this can be seen by looking no further than, Sberbank playing a major role in helping to revitalize the Russian bond market. Where, 2010 has seen the largest number of offerings ever for Russian companies and the Russian government. (Matermevonsky 2010) This is important, because it shows how Sberbank has evolved from a traditional bank in 1841, to becoming one of the largest employers in…… [Read More]
Korean Financial Crisis in the Late 1990s: Lesson for Current Euro Area
The objective of this study is to examine what is unique or different about the Korean financial crisis as compared to other Asian financial crises and to determine the primary causes of the financial crisis in Korea. This work will further examine the government response to the crisis and what it is that can be learned from the Korean financial crisis and applied in Korea to the Euro Area.
The major components of the Korean financial system in the 1960s and 1970s are stated in reports to have been nationalized with "lending targeted toward favored sectors and firms including the exports and heavy industries. (Jeon and Miller, 2005) Regional banks came on in 1967 and could only operate in their own provinces, which provided encouragement for development that was regionally-based. In the early 1980s, plans were made for…… [Read More]
While many banks are closing branches, that is not necessarily the best strategy for banks attempting to stay close to their customers.
Transaction costs: Of course all banks want to reduce transactions costs, but how many look at their customer's cost/value trade-offs. A win-win may be online banking at Wells Fargo, or a tie-up with Quicken and Microsoft Money, assuming the customers in focus are computer-savvy and are happy with low touch. Transaction costs exist on both sides -- the bank and the customer. A bank's strategic plan should insure that the customer sees time-savings, lowered costs or improvements to his/her business.
Promotion: Promotion, advertising and other techniques should be the result of the above thinking. Once a bank decides on its chosen market and what services it wants to deliver, the decision on marketing strategies is much easier.
The preponderance of evidence indicates that banks which employ strategic…… [Read More]
Gross Margin (ttm):
Oper. Margins (ttm):
Net Income (ttm):
PNC = the PNC Financial Services Group
B = achovia Corp (Charlotte)
Industry = Regional Banks
Commerce Bancorp Inc. (CBH))
PNC and Commerce each, as corporations, have their own distinct culture and mind set. PNC has that old world bank tradition with an overly conservative approach. The communication to the outside world is that the company is outdated and out of touch with the young technologically advanced individuals. PNC attempts to present a culture that is young but its communication with the internal customer, the twenty three thousand or so employees must be getting a message that the true organizational structure is conservative and old. The communication process therefore is not a two way street. Because of how the organization…… [Read More]
"The law banned commercial banks from underwriting securities, forcing banks to choose between being a simple lender or an underwriter (brokerage)" (PBS.org. N.D. PP. 1). The legislation was a direct response to the late 1920's Wall Street binge years in which "financial mismanagement and elite corruption ruined banks and destroyed public faith in American finance" (Departments. Washington.edu. N.D. PP. 1).
inancial Services Modernization Act
The repeal of Glass-Steagall in 1999 was not a one- time event; in reality the law had been chipped away at for decades prior. Decisions regarding product and service offerings for financial institutions (checking and interest bearing accounts), bank-holding company statutes, and financial institution underwriting guidelines all eroded the fundamental basis of Glass- Steagall as a protective barrier against money center financial influence.
Enter in Sandy Weill in 1998-1999 and the final dagger to the heart of Glass-Steagall is delivered.
On April 6, 1998, Weill and…… [Read More]
Bank of America and Merrill Lynch would have to be separated and Goldman Sachs could no longer be a bank holding company. "Commercial banks would take deposits, manage the nation's payments system, make standard loans and even trade securities for their customers -- just not for themselves. The government, in return, would rescue banks that fail. On the other side of the wall, investment houses would be free to buy and sell securities for their own accounts, borrowing to leverage these trades and thus multiplying the profits, and the risks. Being separated from banks, the investment houses would no longer have access to federally insured deposits to finance this trading. If one failed, the government would supervise an orderly liquidation. None would be too big to fail -- a designation that could arise for a handful of institutions under the administration's proposal" (Uchitelle, "Volcker," 2009).
The Volcker proposal seems sensible,…… [Read More]
For most of us, dealing with money has been altered by technology. Most of us use money out of ATM's or we pay bills with online banking just as easily as we change channels on a television. Obviously printing presses and paper cutters create our physical money, but how is the idea of money really created? Do banks and laws really make the idea of money? This essay evaluates the efforts of the Federal eserve System, often called the Fed, in terms of regulating the money creation of financial institutions?
Congress passed the Federal eserve Act near Christmas in 1913 and that established the Federal eserve Banks and also created a more elastic currency and established new legal controls over the commercial banking industry. The Federal eserve is the central bank of the United States and is made up of 12 regional Federal eserve banks that are overseen…… [Read More]
Today's financial environment makes business analysis difficult and hard to predict. Globalization and rapid changing trends dominate business news and affect both Wall Street and Main Street in different yet substantial ways. ank of America is a very popular topic of discussion in today's world of economics and global markets. The business environment ank of America currently lives within is rapidly changing and fiercely competitive. ank of America is seemingly in much trouble today in many different ways. The purpose of this essay is to discuss the business environment ank of America operates within, and compare and contrast its practices and procedures with its competitors.
A useful tool in understanding the financial health of any particular corporation begins with looking at its financial statements. Income statements, balance sheets and cash flows often determine the financial health of any particular company. ank of America's financial statements are…… [Read More]
Threats due to weather include floods, earthquakes, hurricanes, tornadoes and blizzards. Planning for weather events should be very realistic in nature. Major weather events usually occur in 25, 50 and 100-year cycles. Disease outbreaks are also a big threat. A potential flu pandemic could be detrimental to many businesses. For example, the bird flu pandemic scenarios that are floating around are being modeled on the Spanish flu pandemic of 1918. That global outbreak killed 500,000 people in the United States and more than 20 million people worldwide. Since that time there have been two other smaller scale flu pandemics, each that killed hundreds of thousands of people. The flu is just one disease that can cause a business disaster situation around the world (Business Continuity during a Disaster, 2008).
ecent years have also shown that terrorism threats are a real possibility that needs to be considered. Terrorism is a great…… [Read More]
HSBC: An Outlook
BNP Paribas: A Helicopter View
Comparison Between HSBC and BNP Paribas in the Banking Field
SWOT Analysis and the Bank's Operations in Middle East Especially in Dubai & Bahrain
PEST Analysis And the Bank's Operations in Middle East Especially in Dubai & Bahrain
External Analysis of HSBC and BNP
Competitive Profile Matrix (CPM)
Example of HSBC and BNP Around the World
Customer Values Analysis
Value Chain Analysis of the Banks
The current corporate world and environment can be referred as the resolution of administration. Way backed in which bread-and-butter development depends entirely on accurate and automated inventions. However, in the avant-garde apple acceptable administration is all-important for able and able alive of organization, forth with abstruse advancement. Administration is all the added significant between the ambience of the enterprises of the business, neither a business can run on itself nor…… [Read More]
Strategies to achieve a competitive advantage in the marketplace
Organizations thrive by providing a level of value or services for their customers that their competitors cannot. Mountain Bank currently has a strong retail banking business, but it wishes to expand its outreach into the more lucrative business banking sector. It wishes to expand into retail and corporate banking. To do so, it desires to better use its tellers to convince current private banking account holders to open up corporate accounts.
Tellers are the 'face' of Mountain Bank. They are a critical asset, because one of the main reasons consumers desire to use a bank beyond basic 'nuts and bolts' needs is the confident and concerned image presented by the teller. Of course, more and more banking is being done online today. However, many consumers are frustrated by this, and often it is when a…… [Read More]
What needs to happen is that economic stimulus aimed at savings and investment, not necessarily nationalization of financial institutions, needs to occur. There is a difference, and with nationalization there is the assumption of risk by a government which will naturally be one of the most risk-averse, and therefore unable to capitalize on economic growth mindsets there are. A financial strategy of seeking to infuse greater levels of trust in financial institutions by tighter regulations on them and the development of programs to get the most critical of resources, oil and gas, free form inflation, is essential for a recession to not be prolonged due to inflation. Stabilizing these two factors, GNP and controlling inflation, are what can restore trust in an economy and help it to turn around. There are no quick fixes to a recession, rather the gradual spiral that creates one need to be used to get…… [Read More]
Sorkin, however, posits no argument per se. ather, his book offers insight into how the financial crisis manifested from a far more personal perspective of those involved than anything else. The book is informative in nature, and give insight into some of the thought processes and activities those on the outside may not otherwise be exposed to or privy to. The title of the book sums it up best, and the book outlines how the banks and the primary players and stakeholders have become too big to fail. The book highlights the self-interest of those in charge of some of the biggest financial institutions in the world and their blatant disregard for Main Street.
The book has a place in the larger academic debates raised within public knowledge because it adds to the public's real knowledge of those involved in the nation's financial industry and government offices. Instead of speculating…… [Read More]
There are no other material costs related to the Offer is expected.
15. Who is the investigating accountant for this prospectus and what is their role?
Tiaro Coal Limited's investigating accountant is DO Kandalls Corporate Finance (NSE) Pty Ltd. The purpose of the investigating accountant's appointment is to report on the concerns raised in Australian Securities Investment Commission's (ASIC) application in relation to the Offer. The report must comply with the Australian Auditing Standard (AUS) 804 or at least, the reasonableness of the report can be appropriately verified (Cockburn: 2002: 1).
16. What are the risk factors associated with this prospectus and briefly describe each?
Investing in Tiaro Coal Limited involve embracing the susceptibility to uncertainties and risks. According to Section 10 of the Prospectus, Tiaro Coal's business activities are subject to both business risks and general risks. In relation to the nature of the business, there is the associated…… [Read More]
They face 8 competitors there. The largest country for OI overall is Montenegro, in part because there are no competitors operating in that country (Mixmarket, 2009).
Thus, in any given market, OI can expect competition from a wide number of microfinance institutions. In general, these institutions are charitable organizations based in estern countries. They each have similar objectives and are not motivated by profit, therefore there is low intensity of competition between them. Groups do not necessarily work together, but may instead avoid each other's territories. The competition keeps OI's operations small in many countries, but it also provides more choice for entrepreneurs in those countries to receive financing.
The main impact of competition for OI is with respect to funding dollars. OI must work hard to compete against not only other microfinance organizations, but charities of all stripes for the finite dollars available from both private and institutional donors.…… [Read More]
The majority of the population was left extremely poor, lacking food, clothing, housing and medical care. The economy virtually collapsed..." During this time, any formal financial sector was essentially nonexistent, basic infrastructure was lacking, and a severe drought from 2002-2001 further ravaged the economy (United Nations Office on Drugs and Crime).
During this decade, violence and political instability had a tremendous impact on Afghanistan's economy. Inter-regional trade was greatly disrupted, and often brought to a virtual standstill by violent instability. However, the appearance of the Taliban regime saw improvements in inter-regional trade in areas controlled by the regime (United Nations Office on Drugs and Crime)
In the last decade, the opium trade played an important role in Afghanistan's economy. In an economy where the monetary system was virtually destroyed by prolonged war, opium "became both the medium of exchange and the only form of saving" (United Nations Office on Drugs…… [Read More]
anking and financial services includes such firms as investment banks, commercial banks, brokerage firms, and credit card institutions. The common it pulse throughout the daily operations of these organizations involves utilizing systems to communicate between branches and subsidiaries, establishing operations throughout the world, communicating with the end customer in order to facilitate transactions, and analyzing customer and market attributes in order to reduce uncertainties in such aspects as pricing policies" (p. 24). Some of the more salient issues affecting the financial services industry today are described further in Table ____ below.
Examples of utilization of information technology in order to enhance efficiency and productivity by the financial services industry.
Description of Impact
Credit card institutions store, retrieve, and analyze vast amounts of demographic customer information enabling them to more accurately target potential markets for new products and also identify less-attractive, credit-risk customers.
This allows them to…… [Read More]
company's investment success especially in relation to other companies. The paper aims at establishing how a company's competitiveness can be calculated in relation to others in the same industry and the factors that hinder the calculations or hinder a true picture of the same
Compare industry average and a main competitor
For convenient comparison of industry average, majority of companies place Industry average values next to a company's financial measures for convenient comparison. To get a clear picture, a company can obtain industry average from its competitor by carefully examining (its competitors) stock screen results. (Gray, 2004)
However it is notable that various industries have their peculiarities with some operating under very heavy debts which would companies in other industries. For instance, software companies enjoy high profit margins that other companies envy and that all software companies must attain to stay in the game.
For that case, to see whether…… [Read More]
HSBC is one of the world's largest banks, and it has the third-largest market share among UK retail banks. This massive global footprint supports a differentiation strategy that is encapsulated by the "the world's local bank" slogan. HSBC plays to its strengths with a presence in many major markets around the world, but its strength in retail and commercial banking belies a relative weakness in investment banking.
The banking industry is highly competitive. In the UK at the retail level it is in an oligopoly state. The company also competes among the global banks of the world, which is a business more in a state of monopolistic competition. It has a differentiated strategy, which is loosely based on a broad geographic scope and customer service. The latter is a difficult area in which to differentiate. There have been some problems with the geographic scope, too, and HSBC has recently left…… [Read More]
The reliance on this location on the Persian gulf for both air and ship freight is expected to experience a 50% growth rate in the coming three years (Yoders, 2010). This will be reflected in an increase in investment for warehousing systems, supply chain management centers and the development of more efficient airline terminals specifically designed for the needs of air freight companies (Yoders, 2010). This will also translate into the need for greater services across the value chains of many of the world's most advanced and quickly changing industries, including the automotive industry (Sa Joe, 2006). A second example is that of professional services in construction and development (Donahue, 2007). Many American manufacturers have production centers in China and India, and need a more efficient route to European markets. The investments in supply chain infrastructure on the part of the UAE government are deliberately aimed at the needs of…… [Read More]
Historical evolution of functional responsibilities of SAMA
History of SAMA (Saudi Arabian Monetary Agency)
The Saudi Arabian Monetary Agency (SAMA) was established on October 4th, 1952 and is headquartered at iyadh, Saudi Arabia. SAMA operates as the central bank of the Kingdom of Saudi Arabia (KSA). Before setting up the Saudi Arabian Monetary Agency, KSA utilized the service of Saudi Hollandi Bank as the central agency to keep the governments gold reserves. The idea of setting up SAMA as the central government operated agency was materialized by Abdallah Sulaiman, the then finance minister of KSA. The currency that SAMA regulates and prints is the Saudi iyal, the official currency of KSA. The establishment of SAMA was decreed by King Abdul Aziz on 25/7/1371H, 20th of March, 1952 (SAMA, 2013).
SAMA is currently the official agency charged with management of financial system. With the evolution and development of…… [Read More]
The decision to integrate all process workflows with the core business, rely on it to act as an accelerator of accuracy and performance, and create value as a trusted advisor is what eventually helps the company to help redefine the value chain of this industry, as Porter predicts in his analysis of competition (Porter, 2001).
Citibank's strategic intent is to convert its traditional money management business into an e-business framework. How does Citibank transform its traditional assets into digital assets? What issues, if any, do you envision that Citibank must overcome in order for the implementation to be successful?
Inherent in the plans to convert its traditional money management business into an e-business framework are broader implications of disintermediating part of the value chain in commercial banking at that point in the industry's lifecycle (Andal-Ancion, Cartwright, Yip, 2003). Citibank relies on its intensive level of business process expertise, combined with…… [Read More]
Because of the extreme conditions of the 1930s depression, the New Deal under Franklin Roosevelt went further in expanding the powers of the federal government than any previous administration in history, certainly far beyond the very limited role permitted to it by the conservative administrations of arren G. Harding, Calvin Coolidge and Herbert Hoover in 1921-33. It was the worst depression in U.S. history, and led not only to the complete collapse of all Street and the financial system, but of industrial production as well, which fell 85% in 1929-33, while the Gross National Project fell by half and in some cities like Chicago the unemployment rate rose as high as 50-60%. At the same time, the entire banking system collapsed by 1933, as did agricultural prices, and money stopped circulating. John Maynard Keynes and other economists blamed this severe contraction on low incomes, unequal distribution of wealth,…… [Read More]