...Introduction In modern economic society, while the global countries economic become more and more integrated, each member country focuses on the financial developments and economic growth, so that they can occupy one position in the modern competitive economic environment. Financial development involve lots of factors, including producing information about possible investments and allocating capital; monitoring the firm performance and corporate governance; trading, diversification, and management of risk; mobilization and pooling of savings; and easing the exchange of goods and service. Usually the financial development level is primarily determined by the local institutional quality, the extent of government police, geographic elements, native income level and cultural tradition. These factors formed the economic environment in which the banks and other financial firms to make decision for investment project and exogenous financing, furthermore, the customers decide whether consumption or saving, moreover, the financial intermediaries finance the fund in which approach from savers to borrowers. The well financial system can perfect the effect of information, enforcement and transaction cost on the saving rate, investment decision and technological innovation, and steady state growth rate. Financial market channel the fund to investment opportunities to get the profit, so if the financial system cannot work well, the economic growth also more or less affected. The essay mainly gives a...
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...Essay on the Role of Banking in India's Developing Economy One of the major considerations that led to the nationalization of the fourteen major commercial banks of India in 1969 was the fact that banks, in general, had been negligent of the vital priority sectors of the economy, viz., agriculture and small-scale industries. The commercial banks had remained largely indifferent to the credit needs of the farmers for agricultural operations and land improve¬ment. A handful of people were able to exploit the bank finance to serve their own individual interests and convenience. Very often, they used bank funds for the hoarding of essential articles and for specialization, thus nurturing anti-social elements. Nationalization brought about a major policy shift in the working of these banks. The economic development of our country depends more on real factors like the industrial development, modernization of agri¬culture, organization of internal trade and expansion of foreign trade, especially exports, and less on the monetary factors contri¬buted by banking— Economic planning like laying down of specific targets and allocating particular sums of money that constitute the economic policy of the government also plays a significant role. Still we cannot under-estimate the importance of banking and the monetary mechanism. One of the most important problems of a developing economy is that of capital formation. There is a good deal of difference between hoarding and saving and the people...
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...Econ., Vol. 9, pp. 55-65 (1417 A.H / 1997 A.D) Hamid Zangeneh and Ahmad Salam Central Banking in an Interest Free Banking System J.KAU: Islamic Economics, Vol. 5 (1993), pp. 25-35 Comments: RODNEY WILSON Professor of Economics Department of Economics University of Durham U.K. The article by Hamid Zangeneh and Ahmad Salam is a welcome departure in the Islamic finance literature, as relatively little has been written about the role of central banks in an Islamic financial system. The authors review the major functions of central banks, and then discuss how monetary tools need to be adapted in an Islamic economy, these including discount rates, open market operations, reserve ratios, refinancing ratios, credit controls, moral persuasion, profit sharing ratios and exchange rates. The authors cite an earlier paper by Mohammad Nejatullah Siddiqi who has probably given more consideration to the issues than anyone else. (1) One of Siddiqi's main concerns is the central bank's role as lender of the last resort, as it is ultimately responsible for safeguarding the interests of depositors, whether the system is conventional or Islamic, although arguably in an Islamic economy it is not so much a matter of consumer rights, but rather of moral responsibility to Muslim depositors who have entrusted their savings to an Islamic bank in good faith. Although the authors quote Mohammad Uzair when discussing the tools of central banking, (2) Sidjqi has looked at these matters more recently...
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...Russian commercial banks in comparison with Western once Commercial banks are in the business of providing banking services to individuals, small businesses and large organizations. Today's commercial banks are more diverse than ever. The goal of this essay is to clarify is there any significant changes for the institutional structure of the Russian banking system during last 5 year, make comparison between Commercial banks VTB24 (Russia),Barclays (England) and Goldman Sachs (USA)to understand the progress of developing Russian commercial banks. In 2012 active growth of retail lending in the Russian banking sector continued. Corporate lending was growing at slower rate and the share of corporate credit in the Bank assets decreased. At that, the share of deposits remained at a high level. Notwithstanding the fact that attraction of the population's funds grew at a slower rate - almost twice slower than the growth of the credit portfolio - the population still remains the net creditor of the Banking sector. VTB24 is the country’s second largest retail bank as regards the volume of loans provided to the population as well as regards the volume of deposits made by the population, it exceeds the nearest following banks by more than 3 times. At the end of December 2013, VTB24 owned total assets of RUB 6,789.6 billion (US$ 210.7 billion).Figure 1 provides an overview of the structure of VTB’s assets in 2013. With 63%, loans and advances to customers account for the largest share...
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...problems which were caused by planned economics system in these three countries. The development of financial system was mainly controlled by government and less freedom can be given so that it caused the less-developed problems among these Mekong countries. However, during the last decades, with the distribution of market-oriented economy government released the control of private enterprises and the discrimination of small and medium enterprises have been gradually eliminated. The banking system faced new challenge. New reforms should be done to adapt to the changing circumstance. The new regulatory and supervisory was strengthened for more efficient banking system. This essay will first illustrate the banking system in these three countries respectively and then find some similarities or differences between them during the reforms. Finally conclusion will be illustrated. Banking system in Vietnam In order to adapt to the transformation of economy system in Vietnam, much attention are paid on the banking reform and optimization. The financial liberalization process has been continued to accelerate. (1) The government made the duties of specialized banks clear and commercialized the operation. In 1990, Vietnam formed state-owned banking system which consisted of the central bank and 4 specialized banks. The asset of these state-owned banks accounts for 70% of total asset in Vietnam. Vietnam’s economy was only supported by a “one-bank” system. However, because of the unclear...
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...banking facilities in Hong Kong and on the China coast. The increasing and frequent trade was undertaken between Europe, India, and China, which contributes to the extension of the bank. HSBC now is one of the world’s largest banks with extensive international operations. Although the bank rapidly expanded across the globe, HSBC retained a clear focus on China market. In view of these changes of HSBC’s China strategy, it may be instructive to examine how banking environment and police of China changed over the years. Upon China’s accession to the WTO, foreign bank were allowed to enter China’s bank sector. HSBC seized the tremendous opportunity to strengthen its presence in China. This essay will begin by examining the evolution of HSBC’s Strategy in pre-WTO and post-WTO China. Next, It turned to analyse the impetus to these changes of HSBC’ China strategy. In the following part, this essay will introduced the background of HSBC expanding in China’s rural areas and evaluated this strategy from advantages and disadvantages aspects. Having presented the HSBC’s presence and strategy in China, the paper then analyses HSBC’s operating in other emerging markets with the evidence from India and Argentina. Moreover, the data and facts will be provided to evaluate the operation of HSBC during the recent world economic crisis. The further research about the reasons that Asian was identified by HSBC for future opportunities will be presented followed. The final section presents some conclusions...
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...relationship between entrepreneurship, innovation and economic development as well as the role of sustainability in the relationship Introduction: The origin and development on theory As early as the 17th century, the French term "entreprendre "appeared in economics, which evolved into "entrepreneur" as commonly used (Dees,1998). The concept of entrepreneur keeps on developing and varies with the development of socio-economics. Richard Cantillon published his in 1775 “Essay on the Nature of Trade in General" (Murphy,1986). Since then, entrepreneurship was given a definition in the perspective of behavior, including decision-making, sound judgment, supervision of production, innovation, and resource reallocation (Herron, 1993). The new definition of the "entrepreneur" credited by French economists was put by Jean Baptiste in the 19th century "the entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield". In this time, entrepreneurship was given the meaning of "creating values"(Dees, 1998). In 1911, “entrepreneur as innovator” was put forward by Schumpeter. In his theory, entrepreneurship nearly the same as innovation is thought to be a critical factor in the promotion of economic development. This theory was unceasingly completed by Schumpeter. Through the process of “disruptive innovation” (Schumpeter, 1942), entrepreneurs create economic opportunities and obtain economic benefits by causing a series of disturbances to...
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...financial center 7 2.2 Theory of bank management mode 8 Part 3 Analysis 10 3.1 Management mode of China Merchants Bank 10 3.21 Industrial structures 10 3.22 Services provide to customers 11 3.23 Source of profit 12 3.24 Financial products 12 3.3 The advantages of China Merchants Bank under the construction of international financial center 13 3.31 History and location 13 3.43 Headquarters circle 15 3.5 The challenges of China Merchants Bank under the construction of international financial center 16 3.52 Competitions from the non-bank financial institutions 17 3.53 Weakness in leading of Shanghai 17 Part4 Evaluation 19 4.1 The transformation of China Merchants Bank 19 4.11 Introduce financial talents 19 4.12Enhance the service satisfaction 21 4.13Adjust the industrial structure 22 4.14 Promote efficiency 22 4.15 Innovative financial products 23 4.2 GFIC analysis and People Factor 24 5. Suggestions 28 5.1 Diversified financial services 28 5.2 Financial personnel policy after the subprime crisis 29 5.3 Make reasonable risk early warning mechanism 30 6. Conclusion 31 7. Bibliography 32 Student statement 33 I hereby declare that the contents of my thesis on 33 Part 1 Introduction and Problem Statement 1.1Introduction In the development of financial globalization, Shanghai is under construction to become one of the international financial centre. In recent years, with the development of Chinese economy, the essential issue...
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...An essay On “Monetary Policy of Bangladesh” Course Code: MBA 510 Course Title: Macro Economics Submitted to: Professor Abdul Bayes Department of Business Administration East West University Submitted by: Minhajul Abedin ID: 2013-1-95-019 Section: 01 Date of submission: 24 august, 2013 Monetary Policy of Bangladesh Decisions regarding the monetary policy are very important for any country in today’s world. To control the supply of money by targeting a rate of interest, and to promote the economic growth and stability, a good control over the monetary policy is a must for every country. Bangladesh is a developing country and its monetary policies are generated by the central bank of the country. Though the land size of Bangladesh is not that big but in terms of total people, it is a big country relative to other countries. As a developing country it is undertaking so many developments and business projects both publicly and privately. The monetary policy of Bangladesh is playing a pivotal role to control the money supply of the country which in turn is promoting the overall economic growth of the country. This essay briefly discusses about some of the activities of the central bank related with the monetary policy of Bangladesh along with some other primary things which are related to the basic monetary policy. In this essay the “Monetary Policy of Bangladesh” will be presented by following this sequence, 1. A brief overview of monetary policy ...
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...Describe the origins and evolution of the Eurocurrency markets and the key financing instruments they provide for firms and organisations operating internationally. Why did these markets grow so fast and what are the advantages of raising finance through them for international businesses and organisations? http://homepages.uel.ac.uk/K.Bain/euromarkets.pdf https://ulib.derby.ac.uk/ecdu/CourseRes/dbs/economic/Gow13.pdf http://site.ebrary.com/lib/leicester/reader.action?docID=10232762 The Euromarkets can be broadly divided into two types: Eurocurrency and Eurobond markets. The Eurocurrency market plays a crucial role in international finance and they are the most important international financial markets today. It provides the most convenient financial service to international businesses and organisations as the nature of the market and its free convertibility. This essay will introduce the origins, begin with the definition and background of Eurocurrency market and some basic characteristics of the market, and development of Eurocurrency markets and will also find out what the financial techniques they provide for companies and organisations are. In next section, it will focus on explaining the reason why the Eurocurrency markets develop in high-speed and finding what the advantages of using Eurocurrency markets to raise fund for companies and organisations operating internationally are. The US dollar, the Eurozone euro, the British pound and the Japanese yen are the...
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...The history of human development has been affected by many factors such as environment, trade and science. There is no doubt that inventions or creations of something new have had a significant influence in the historical process of human beings. Creativity is the source of innovation, and all the inventions, science and technology which promoted the advancement of human civilization, are inspired by creative ideas. Without creativity, there would be no development, and the world might be the same as hundred years ago. “Creativity, understood as fruitful originality, not mere novelty, is omnipresent in human experience, from the brilliant artistic works, inventions and discoveries that change the course of one life or many to the everyday efforts of problem solving seen in verbal or mechanical wit” (Caramenico & Goodman, 2013). On the other hand, commercial and trade also play a substantial role in the development of society. Moreover, the method of payment, which is a crucial part of business, has had a tremendous impact on individual’s lives. This essay will analyse the creativity of payments in two aspects which are motivation and imagination by examing the development of human society. This essay will also provide two real world examples to give a critical analysis of how creativity is applied in payments. The methods of payments are everywhere in people’s lives, such as shopping or transfer accounts. According to Babbush & Charles (2008), “payment is the performance...
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...overview The introduction of money and the development of local markets to trade goods were the genesis of the financial system of today. Money is a medium of exchange that facilitates transactions for goods and services. With wealth being accumulated in the form of money, specialised markets developed to enable the efficient transfer of funds from savers (surplus entities) to users of funds (deficit entities). A modern financial system comprises financial institutions, instruments and markets that provide a wide range of financial products and services. Importantly, a financial system encourages accumulated savings which are then available for investment within an economy. Financial assets, or financial instruments, incorporate attributes of risk, return (yield), liquidity and time-pattern of cash flows. Savers are able to satisfy their own personal preferences by choosing various combinations of these attributes. By encouraging savings, and allocating savings to the most efficient users, the financial system has an important role to play in the economic development and growth of a country. A range of different financial institutions has evolved to meet the needs of financial market participants and to support economic growth. Chapters 2 and 3 examine the major types of financial institutions. At this stage the institutions are categorised by the nature of their principal activities. Depository institutions, such as commercial banks, building societies and credit unions, specialise...
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...CARIBBEAN EXAMINATIONS COUNCIL Caribbean Secondary Education Certificate CSEC ® PRINCIPLES OF BUSINESS SYLLABUS Effective for examinations from May/June 2008 Including 2009 amendments CXC 08/G/SYLL 06 Published by the Caribbean Examinations Council. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means electronic, photocopying, recording or otherwise without prior permission of the author or publisher. Correspondence related to the syllabus should be addressed to: The Pro-Registrar Caribbean Examinations Council Caenwood Centre 37 Arnold Road, Kingston 5, Jamaica, W.I. Telephone: (876) 630-5200 Facsimile Number: (876) 967-4972 E-mail address: cxcwzo@cxc.org Website: www.cxc.org Copyright © 2006, by Caribbean Examinations Council The Garrison, St Michael BB14038, Barbados CXC 08/G/SYLL 06 2 Contents RATIONALE...........................................................................................................................................................1 AIMS ........................................................................................................................................................................1 GENERAL OBJECTIVES ......................................................................................................................................2 SKILLS AND ABILLITIES TO BE ASSESSED ........................
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...systems in the western economies. In this essay, after a brief illustration of the development of banking system in China, the recent event of money shortage in it will be discussed. Development of banking system in China “Piaohao” is the earliest Chinese form of bank which appeared in the Qing dynasty (over 200 years ago). It is a firm for exchanging and transferring money, and it also provided deposit and loan services. However, the first modern bank is established by the English in Shanghai in 1845 (Wang, 2008). After the People's Republic was founded in 1949, the modern banking system of china was built and developed gradually. Recently there are 3 major types of bank in the system. First, the central bank, which is The People’s bank of China, operates similar functions as that of western countries. And it is the only bank that can issue Chinese currency (RMB) and unify the national currency (PBC, 2013). The second type of bank is policy banks, which are established by the Chinese government and they are non-profit oriented. The major role of these banks is to provide long-term financing support for economic and trade development and state-invested projects (Wong, 2001). The last type is commercial banks, including state-owned banks, local bank, private bank, foreign bank and other types of small and medium banks (Wong, 2001). In particular, the “big four” state-owned banks of China were ranked as 4 banks of top 5 profitable Banks in the world in 2012 (HITC Business, 2013)...
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...May Bumar Final Examination – Essay Format. 1. Define business and discuss the role of business in the economy? Business: An organization or enterprising entity engaged in commercial, industrial or professional activities. A business can be a for-profit entity, such as a publicly-traded corporation, or a non-profit organization engaged in business activities, such as an agricultural cooperative, (Investopedia) Business is a crucial part of the economy. Without businesses there would be no revenue for the government to collect taxes and perform the daily activities necessary for our environment. Our government depends on the businesses to bring in money. If there were no businesses whether it is a small business or a large corporation, our economy would suffer. 2. Define economics and discuss the evolving global economic crisis? Economics: A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants. Economics can generally be broken down into: macroeconomics, which concentrates on the behavior of the aggregate economy; and microeconomics, which focuses on individual consumers. (investopedia) The global economic crisis was caused by improper use of foreign money. The government failed to regulate this activity so mortgages, hedge funds, investments were all affected. This is an ongoing situation with our economy because we are still borrowing money that we cannot...
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