Essays on Financial Institutions

Bloomberg Businessweek Assignment #1

What is Behavox and how is its software in use? Behavox is a startup company that is based in London. Adylov started the company in June 2014 (Finch & Robinson, 2017). It is acknowledged for creating a compliance surveillance software that provides the financial institutions with holistic employee surveillance solutions. According to Finch & Robinson (2017), this company promises to save money for the financial corporations, which have paid out hundred millions of dollars hiring back-office workforces, accountants, and lawyers to adhere to the rules around money laundering, capitalization, and risk. Behavox’s software catalogs computer logins, bathroom breaks, phone habits, ...

Background

Today, the financial industry is more regulated than any other time in the history of economic globalization. However, the lack of fundamental professional behavior, ethics, and compliance raises the important question whether the current financial sector in Australia is destined for an endemic future. The persistent fraud cases in the Australian financial industry paints an impression that behaviors are yet to change even after experiencing the global financial predicament that emanated from the US. The recent ANZ suspected interbank interest rate rigging, CBA’s CommInsure denial of compensation to legitimate claims from terminally ill patients, and the Macquarie Group ...

Introduction

The financial crisis of 2007/9 was the worst in the U.S. since the Great Depression of the 1930s. It was the cause of the failure of some of the biggest financial institutions including Washington Mutual which was closed in 2008, and its assets transferred to JP Morgan. In 2008, the crisis reached its peak with loans dropping dramatically to the lowest levels to be witnessed in a half a century. For example, new loans to large borrowers fell by 47 percent in the fourth quarter of 2008 as compared to the previous quarter and by 79 percent relative to ...

Impact of Policy Changes on Financial Stability of Commercial Banks in India

Paper Due date Abstract The study envisages financial stability of Indian Banks, especially schedule commercial banks, in the backdrop of macro-prudential policy changes. Banks are put under microscopic vision in terms of performing as commercial units while strictly adhering to the policy norms. The effect of regulatory and supervisory policy changes can be evidently seen in stressed performance of banks in the recent years, in-spite of growth in their retail portfolios. The policy changes of increased provisioning for NPAs, improvement in asset account quality, revised guidelines for Net Stable Funding Ratio, restructuring of large accounts and many more have ...

Introduction

MasterCard Incorporated is a multinational financial services provider listed on the New York Stock Exchange. MasterCard provides electronic payment cards and other financial services for banks in the United States and around the world. This report will focus on the business environment within which MasterCard operates and how its internal and external environments interact to define its current status as financial service provider. This will include the company analysis which will be an inquest into the internal elements of MasterCard and its activities. The competitors and competition processes faced by MasterCard will be considered. Then the research will provide ...

Primary and Secondary Market

Primary markets are linked to the issuance of new securities that are apportioned and issues by the companies to people, who have subscribed to the issue. The securities in the primary market are issued to the public via initial public offerings (IPOs) by the public limited firms. The IOPs can be shares or the debentures. The IPOs are associated with the issuance of securities made by the company, which is limited to public on direct basis. On the other hand, in relation to bonds investors buy them directly from the firm. The shares or debentures are issued at the ...

Introduction

In the United States, some bodies have been formed with the aim of preventing consumer and investor exploitation. These bodies are aimed at providing financial protection to the citizens. Some special laws such as Usury laws have also been formed to protect the citizens from exploitation. These bodies include the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency, the Security Exchange Commission and the Financial Industry Regulatory Authority (FINRA) (Mckay & Seale, 2000).

The Federal Deposit Insurance Corporation (FDIC) and its purpose

The Federal Deposit Insurance Corporation (FDIC) is an independent public corporation based in the United States. It was formed in the year 1933 ...

Jay Kiley

Dr. Lorrie McGovern Literature Review Abstract Innovations are inevitable in the business nowadays as they lead to the increased efficiency. The more efficient the company is, the higher the profit it gains. This is equally fair for the product innovation and management improvement. Moreover, financial innovations are now even more desired. All these changes are beneficial for all parties, as development of the entrepreneurship leads to the social and political improvements. Therefore, within this paper, a literature review will be performed to reveal main discussions on the innovations in the financial management, especially in the commercial lending. Both advantages ...

Introduction

An organization is regarded as an entity that is made up of people with a collective objective and is connected to the external environment. Hence, a business organization is a group of people collaborating to achieve a commercial objective (Handy, 2005). Toyota Motor Corporation is a Japan based auto manufacturing company with its headquarters in Toyota, Aichi. The company was ranked as the 13th largest in the world in terms of their revenue. It was the largest automotive manufacturer in 2010 ahead of the Volkswagen group and the general motors in terms of their production. The Toyota motor company ...

The two thousand and eight financial crises resulted in significant economic turndowns. Before it began in two thousand and seven, prices of housing rose, new investment options emerged, and risk diversification increased. Following the crisis, house prices fell by huge percentages. It exposed economic weaknesses of the United States. Additionally, it led to an increase in the unemployment rate by ten percent (Mishkin, 2011). Approximately, nineteen trillion dollars of household wealth were lost. Lehman Brothers collapsed in two thousand and eight affecting the global financial system. Taxpayers had to bail out various banks to stabilize the system. This paper ...

Market discipline has evolved from the real need to address the financial concerns that brought on the last few financial crises. The international economy is tied deeply to the financial sector, and international organizations such as the International Monetary Fund and the World Bank have been tasked with providing ease of liquidity throughout the world, while also helping to protect the flow of capital across borders to facilitate trade. These financial institutions are remarkably limited to what they can do because they hold little sovereignty over the independent nation-states that compose them; only the World Bank is effective when ...

The emergence of digital currencies and their rapid expansion into international financial markets and the lives of common people has been nothing but a substantial shake-up for the global financial sector. These digital or virtual currencies, often known as cryptocurrencies, employ cryptography to secure and authenticate transactions, as well as to administer the creation of new units. Today, both youngsters and older people know the Bitcoin benefits and Ethereum features: they are decentralized and operate on a peer-to-peer network, giving users more independence and near-absolute anonymity.

In recent years, digital currencies have grown in popularity, and their use has spread beyond ...

Background

Being a small sized nation and also one lacking too much of natural resources, it was mandatory for Singapore to adopt a policy of open trade. The overall trade in Singapore currently amounts to thrice its GDP. Moreover, Singapore possesses absolutely no exchange controls either on the inflows or the outflows of foreign currency funds through its residents and non-residents. Despite the presence of stricter controls over the flows of domestic currency, there is no control that the nation has on its inflow and outflow. The country is known to be following an extremely liberal foreign direct investment (FDI) ...

Out of several things determining the success of the business, the ability to manage the financial risk is also an important factor. Failing to manage the financial risk has lead to the failure of many big companies. MF Global bankruptcy is one of the greatest examples of failure where the company made several attempts to raid the customers’ account to meet the financial obligations (heartland.org, 2012). The company's inability to manage the financial risk caused the loss of million dollars to the customers, and the company turned out to be bankrupt (Till, 2012). This paper explains about various techniques ...

Abstract

When an organization has cash inflows and outflows of foreign nature, the cash forecast for every currency will help during the identification of the currency exposures. The format of the estimation should allow the users to determine the balance for every currency and whether there is a growing shortage or extra money over time based on reasonable cash flows. The increasing gaps between the cash inflows and outflows may need hedging, and the cash flows that offset over time represents the issue of timing effectively. The management of foreign exchange transaction can be achieved through the offsetting transactions to ...

The chapter under consideration is the Chapter 5, Financial Services: Savings Plans and Payment Accounts. The chapter gives to the reader five important aspects that contribute to the understanding of the personal finances. 1. The first aspect is the selection and use of the available financial services in the market and the factors that influence the decision to select a specific financial service. The selection of the financial service depends on of the needs of the client and the convenience of fees and conditions. One of the financial services is the availability of cash. The cash is the most ...

Credit Risk Management

Commercial Loan Market Commercial loans are debt arrangements agreed upon by the lender (business) and borrower (financial institution) to cover operational costs or fund business projects. During economic downturn, financial institutions are cautious of their lending and consequently import strict regulations that force borrowers to pay a higher interest rate. The agreement between the lender and borrower in the market is documented in a “credit agreement.” In credit risk management, the most important components of the agreement describe the covenants, the security requirements, priority of payments and events of default.

Segmentation of Commercial Loan Market

Financial institutions use credit rating to qualify borrowers based ...

2007 Economic Crisis Review

Abstract

This article is an academic review of the economic crisis that struck in 2007 whereby the world economy experienced deep and long prolonged recession with the crisis being considered as the worst to be experienced since the Great Depression . This article largely lies its basis on the U.S experience during that period with the effects, which resulted from the crisis in the overseas markets outlined. Also, the article brings an understanding of some of the conceptual underpinnings of the issues lying at the heart of the economic crisis. The underlying causes of the economic crisis ...

Summary of Business Research

Over the years, financial institutions have faced a lot of risk including financial loss e.g. customer defaulting as well as the channeling of resources in projects or initiatives that make them loose their valuable resources and probably don’t add value to their organization (McNeil, Frey, & Embrechts, 2015). The effects of these risks have made the financial institutions fail to achieve their objectives and decrease in performance as well as maintain their market share. The end results show that the organization is not able to sustain its capabilities. The study is to investigate the effects of risk management on ...

Introduction

Background of the Study The world economy is currently facing numerous challenges, ones that imped growth and continuous economic development. In reality, there is no such thing as a straight line when it comes to economic development, accounting, and asset management. If history is to serve as a basis, economic development, both on a national and international scale, has been and so can be characterized by a cycle of boom and bust . Based on the metrics that both accountants and economics experts look into when analyzing a for-profit organization, a bank, or a macro economy, the risk of being ...

In his “ on the political economy of the financial crisis and bailout of 2008-2009”, Roger Congleton argued that the decision of the United States government to provide financial aid to the financial institutions stricken by the 2008-2009 global mortgage crisis was rather an ill-conceived move, in the both political and economic contexts. His ideas were further explored by the Alan Montague, who emphasized that the very idea government aid to the large financial institutions was hardly compatible with the ideas of welfare state (Montague, 11). During the global recession, twenty millions of the Americans were not capable of finding ...

Moral hazard in equity contracts

In some instances, the seller of security is driven by incentives to conceal information from the purchaser and may engage in detrimental activities. This constitutes the problem of moral hazard in equity contracts. An example is the problem of Principal-Agent, which concerns the separation of possession and management of firms. The executives in corporations in this case only own a small share of the firm compared to the principals/share-holders. The managers then opt to pursue their interests at the expense of the firm's profitability bringing about a conflict of interest between the shareholders and corporate management (Banerji, and Basu ...

Introduction

The main issues with Parmalat include the ineffective audit planning process and risk management. The company was involved in the fraud and misrepresentation of the financial statements. In addition, due to ineffective audits the company had to face severe consequences at the end. There is a need to implement effective audit strategies and risk management process.

It is important for the auditors to confirm cash balances with the financial institutions that are used in the cash reconciliation of the company like Parmalat. By using standard from confirmation, the auditor requests financial institutions to confirm by examining their records about ...

1. The Financial Crisis: Avoidable but Inevitable Theoretically, the financial crisis could have been avoided as investigation findings revealed . Under the circumstances however, the crisis was an inevitable consequence of everything that was going. The Federal inquiry concluded that the 2008 financial crisis could have been avoided. The crisis was the result of “widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street”. It was the result of “greed, ineptitude or both” on the part of government and the private sector. Among the persons found responsible for the crisis included Federal Reserve Chairman Alan Greenspan and, ...

CONCLUSION

5. Conclusion The research was conducted complying with a predefined set of tools, techniques, and methods. It was accomplished without exceeding the limit of time and other resource allocated for this purpose. This chapter sets out to throw light as to what degree the study has succeeded in meeting research objectives and how it can be applied to managerial level. It is followed by detailed identifications of future prospects of research based on the current study. Finally, the researcher draws attention to some of the drawbacks of the research project along with an assessment of their impact on overall ...

Question one: What happens to the value of equity when the value of mortgages decline?

Under the scenario where the price of mortgages decrease, financial institutions such as banks will reduce their investments as well as the lending. Therefore, consumers will experience some difficulties while obtaining home equity loans. For instance, the withdrawal of capital in the United Kingdom put up extra pounds into the economy before the financial crisis. Thus, leading to negative pounds in 2008 (Investopedia). The declining value for mortgages have an adverse effects on the banking industry. It implies that falling mortgages will make financial institutions to lose cash especially when bank’s clients default from their mortgage payments. Consequently, ...

Saudi Arabia is the world's largest exporter or crude oil, with the country exporting 68% the product to the Asian market. The nation enjoys a market share of 40%, enabling the government to fund a significant proportion of the budget from oil revenue. Consequently, Saudi Arabia was able to accumulate vast financial reserves in the years preceding the current low oil-prices when the price per barrel stood at $120 (Baumeister, & Kilian, 2016). However, the state of affairs has changed in the last couple of years following the drastic decline in oil prices. As a result, the country has experienced ...

LPIPT in Saraburi, Thailand, currently operates waste-to-energy power plants. Our company has brought a residual waste such as municipal solid waste (MSW), landfills and non-hazardous industrial trash into the sorting process. The main purpose of it is to improve quality, for example the heat, size, and chemical composition to be transformed as refuse derived fuel (RDF) production. Using RDF technology from Europe and China along with the machinery developments of the company ourselves gaves us an opportunity to produce RDF with a capacity of 2,500 tons/day for use as renewable energy for generating electricity of our 2 RDF ...

Every day the entrepreneurial market transforms or changes from the way it is. New aspects are developed in a matter of seconds making the entire business scenario different to financial institutions and companies. Amongst the changes, are factors that the firms can control and those that fall beyond their regulation known as the systematic elements. The systematic factors are prevalent in the external surrounding and a greatly influence the corporations. Hence, it is fundamental for the businesses to invest money and time in identifying the primary trends and forces in the external environment that can affect their operations. For ...

1. Corporate Governance refers to the mechanism or system in which enterprises are directed and controlled, especially in which the interests of stakeholders are balanced. It is also known as the relationship between various stakeholders of business such as shareholders, management, the board of directors, etc. (Tricker & Tricker, 2012). Corporate governance system varies from country to country due to the differences in the economic and political system. It can be observed in a way that American corporate governance is entirely different from that is followed in Japan and Germany. In America, corporate governance system is controlled and directed by ...

Executive Summary

The report comprises of two main tasks that are financial ratio analysis and distress analysis to determine and evaluate the financial performance of HSBC. The case study is prepared to analyze the financial conditions of HSBC. HSBC Bank Plc. is one of the largest financial services providers in the world. HSBC operates in Finance and Insurance industry that is highly competitive in the global market. The decline in values of current ratio, quick ratio, and cash ratio reveals that the company did not succeed in maintaining stability in its financial position, but the decrease of 0.02 and 0.01 is ...

Adopted Derivative and Function in the Financial Markets

Derivatives are important tools in the financial markets because they help reduce investment losses resulting from the fluctuating interest rates. For example, Societe Generale lost about $7 billion following the 2008 property market crisis, which could have been much higher if the company did not hedge its funds. Credited default swaps (CDS) or credit derivative contracts on mortgage-backed securities played a major role in the development of the housing bubble in the American property markets. The swipes were widely used to insure debts using subprime housing securities in the property markets. Swap derivatives can be defined as a series ...

Impact of Financial Crisis on the United States’ Banking Sector

The 2007-2008 crisis also referred to as the global financial crisis affected the banking sector across the world in many ways and the US banking sector was not spared. Over the short term period, the crisis affected the banking sector in several ways. Several banks incurred huge losses because of the increased default rate as people and businesses were unable to repay their loans. Mortgage defaults were very high making the banking sector to enact legislation to curb the spread of the crisis. The crisis caused the interbank lending sector to freeze with credit to consumers and businesses drying ...

KMS Design Intervention in Banking Industry

Introduction Banking institutions are under significant competition and pressures emanating from the market. Due to these reasons, banking organizations may experience credit reduction growth to private sectors, poor investments, high-interest rates, and inadequate management of risks. However, banking businesses would lose meaning without customers. Ensuring good relationship with clients contributes to the developments of any particular organization. Business systems that invest in customer knowledge concerning services that they offer stand a chance for future innovation. Surviving institutions retain valuable and accurate information from the profiles of their individual clients. These may include needs, demands, and wants of the specific ...

BTMN632-9040

Dr.

Sources of capital

The sources of funds for the company are divided into two categories means that the company is going to collect funds from two sources. These two sources of funds include debt and equity. The company is going to receive total long term debt of $13,000,000 from the financial institutions. This long term debt and capital from equity will be the major sources of the capital to the company. For now, the equity is held by the owners or the founders of the company that are also going to play the major roles within the organization as ...

5 C’s of Credit 5 C’s of Credit In early times, the lack of financial institutions and absence of banks resulted in the exploitation of poor by the greedy financiers. Borrowers can only escape from the clutches of loan sharks if they have easy access to efficient credit networks. Moreover, credit network is also required so that the savers can deposit their money in reliable financial intuitions so that it can be channelized from the rich people to the poor industrialists (Ferguson, 2008). The primary relationship that money defines is between a lender and a borrower. This ...

The Royal Bank of Canada had first tried to venture the financial market in Thailand in 1980. The bank’s ability to survive in third world country economy was limited. The authorities were skeptical about foreign bankers. Nonetheless, the interest rates were high, and the populations’ ability to pay was relatively small. In 1986, the bank had to close shop. The conditions were unbearable, and the bank could not cover the operating costs. The institution had not even become a fully-fledged firm before the unfortunate thing happened. They had been operating as a marketing outlet, an idea that had ...

Most of the services offered by a bank are largely financial in nature. However, the terms Assets and Liabilities have a different meaning when it comes to banks. For instance, assets in banking terminology would indicate fund usage, while liabilities in case of banks would, in fact, be a source of funds for banks. This essay will consider five different services or function that a bank offers and would explain with reasons if the said service is an asset or a liability, while also evaluating the services and providing an overall impression of the same. This essay considers the ...

Many people got used to understand the bankruptcy as process over. This term is associated with lesions in the business market. However, very few people know that bankruptcy may be a unique tool for solving various problems. For example, the bankruptcy procedure can successfully carry out the liquidation of the legal entity. Therefore, it is possible to identify a number of objectively positive and negative aspects of this method of the “disappearance” from market. Advantages of this procedure include (Elliot and Elliot 64): Bankruptcy is the only currently legitimate way to relieve the company from debts before the ...

Sources of capital

The sources of funds for the company are divided into two categories means that the company is going to collect funds from two sources. These two sources of funds include debt and equity. The company is going to receive total long term debt of $13,000 from the financial institutions. Apart from debt, the company is going to receive capital from the equity holders as the company is going to issue 100 preferred stocks and 100 common stocks at the beginning of the business. This long term debt and capital from equity will be the major sources of the ...

Program Director

Statement of Purpose In the highly competitive and complex world that we strive to conquer daily, we sometimes forget that our most common struggle is being human. We focus on creating a selfhood based on a limiting personal or professional recognition when our common denominator is defining our humanity. I realize that my journey in defining self has been one of shaping my inner being struggling against a strong, external influencer. Recently, I reached a pivotal turning point in my life by redirecting my objectives from the standard and trusted environmental science direction chosen by my traditional Indian family. ...

Introduction

A discussion among the classical economists and the Keynesian economists continues on the government intervention in the free markets. According to the classical economists, the free market mechanism can develop solutions for the crisis in the market if there is no external influence on the markets. The Keynesian economy merely expresses that the free market economy carries the risk of generating crises and undesired deficit or surplus in the economy when the demand cannot clear the supply (Posner 234-252). The discussion on the government intervention is changing direction each time the world economy suffers from a global crisis becomes ...

Financial recess is never a novel term. Depressions have always hit the financial system of the world, and the latest recess America is most likely not the final one. Nonetheless, many issues worked together to make the recent U.S crisis the worst financial recession since the global downturn. These factors include failures of market, weaknesses in the execution of policy, as well as macroeconomic problems. The primary concept, which had controlled economic thinking for many years, was that markets functioned. The appropriate prices often get a buyer as well as a seller. Besides, millions of sellers, as well as ...

The American Economy has faced one of the most destructive economic crises in 2008. The crisis started in the sub-mortgage markets has expanded to the financial markets, and the largest financial institutions have declared their bankruptcies. Subsequently, the collapse of the financial markets has spread to all the industries in the country. What the American lost in the global financial crisis and what made the recovery from the crisis tough was the loss of trust for the American Economy among the agents in the economy. Until 2008, the economic development in the US was based on the consumption economy. ...

There is a common misconception in the business world that without money a business cannot be operational. This is because any business requires money to undertake and develop. It is important to note that a business starts with an idea and the business is the implementation of an idea (Amabile 12). The implementation of the idea requires funds for execution. Notably, the first requirement in a business is an idea. It is difficult to have a viable and practical idea than to obtain finance to implement the idea. Most businesses have already been explored and thus the difficulty experienced ...

a. Carson is providing the funds by investing in the treasury securities. A surplus unit is the only unit that can invest in securities. b. As a deficit unit, Carson has actively borrowed the required funds from the financial institutions. c. Providing the required funds for the expansion can facilitate Carson’s expansion. d. As like finance companies, by providing the required funds for the expansion, commercial banks can facilitate Carson’s expansion. e. This limitation could be because of the borrowing of the Carson that reached its maximum limit. Because of this situation, banks and other financial institutions ...

Financial institutions and financial markets play a massive role in guiding the international economy. The financial industry is the purveyor of credit in the market, allowing individual investors to prepare for their retirement and consumers to purchase homes. The financial industry also works closely with the central banking system of the countries they are located in through legislation and interest rate control, directly relating them to the machinations of the central banking authorities. The roles of financial institutions have changed over time, developing as economics advanced and more needs accrued. Banking institutions were originally created for people to store ...

What is a cartel? (5 marks)

The companies in a market might collude to set the prices by making explicit or implicit agreements between them on the market price, sharing the market geographically, or controlling the quantity supplied in the market. The agreement between the companies in a specific market might create an oligopoly behaving like a monopoly. The companies might set the price, and all the agreement partners might obey the agreement. If the companies can create a large market power, they might behave like one monopolist. Cartel is the situation of existence of an explicit or implicit agreement between the companies in a ...

Abstract

Do the imbalances in current accounts still matter in today’s deep global financial markets that exhibit two-way gross economic flows that dwarf the new outcomes provided by current accounts? Contrasting the adult perception of the world and complete markets, extreme current account imbalances indicate severe financial and macroeconomic stresses, particularly as was the case in the mid-2000s. The increasingly massive valuation differences in nations’ net global investment standards and positions, as well as risk allocations, cannot be relied upon to offset the variations in regional wealth systematically as implied in the current accounts. The same conditions that warrant ...

1.0. Introduction Every business is exposed to small and big risks in its internal and external business environment and risk management strategies are directed to eliminate, avoid, or manage these risks. An effective mechanism for risk management ensures the long term survival, growth, and profitability of an organization. The importance of risk management is peaking in the modern business climate that is much more characterized by uncertainties and risks than its classical form. Financial institutions, as well as all other types of organizations, are also faced with certain threats within their business life, and several of them, if not ...

Essay one (China’s financial system)

Introduction and Thesis Statement The restoration of an economy from a depression requires a careful adoption of strategies. Various measures that governments use to promote the growth of key sectors as wells the entire economy have severe outcomes which must be considered before they are put in practice. Fundamentally, governments implement different fiscal and monetary strategies to solve economic problems, which may be successful or not. Thus, the analysis of the strategy to be deployed becomes essential to achieve the desired objectives. The financial sector in an economy is of central importance. As such, public policies that impact on ...

Abstract

The purpose of the above paper is to highlight the impact of the great recession that was experienced in 2007 -2009 and the bailout strategies used by governments to restore investment institutions from collapsing. The paper starts with an introduction that explains the impact of the great recession to the U.S and global economy. As a remedy to avert the adverse effects of the global recession, both short term and long term strategies were sought. The advantage of using the short-term strategies was to restore stability in the financial sector and prevent further collapsing so as to achieve economic ...

This research is used to investigate the efficiency levels in the banking sectors in various Arabian countries, while considering the role of economic development and different financial reforms taking place, and how these reforms impact the banking industry performance and efficiency (Al-Jarrah, 2007). The comparison of these financial institutions to American or western culture nations shows how these reforms can help or cripple banking industries around the world. Efficiency estimation techniques can be categorized into two groups including parametric and nonparametric methods. Data Envelopment Analysis (DEA) is an example of a nonparametric method of analysis, which is believed to ...

Community bank is an independent, small and locally-owned commercial bank, which operates and obtains its funds solely from the community, where it is based. Community banks focus on providing traditional banking, derive deposits locally and mostly make loans to local businesses. It is widely known that today community banks provide most of the loans to our nation's small businesses and are an important financial resource to small cities. Because of that and because of the fact that they have knowledge of their local community and their customers, they are called “relationship” banks. They base their credit and loan decisions ...

The financial managers are facing different challenges on a daily basis. Their duties consist of the preparation of reports, providing an oversight role in the function of accounting, managing cash of the company, and engaging in planning and investment strategies. Therefore, they are required to uphold the highest ethical standards. Ethics are the set of principles that are grounded on performing the right task by maintaining the moral values where the individual or business operates.

Article 1: The Challenges of Business Ethics – Management and the Question of Ethics

According to this article, ethics management may be considered as the component of the corporate social responsibility (Jamnik, 2011). Over the past five decades, ...

American Public University

Capital structure has an essential place for making a business sustainable today and in the future. The capital structure reflects all the firm's debt and equity obligations. A company might create a capital structure consisting of different capital resources with different risk levels. The components of the capital structure include the followings: senior debt, subordinated debt, mezzanine debt, hybrid financing, convertible debt, convertible equity, preferred equity, and common equity. While creating and managing the capital structure, making decisions on the preference of use the mentioned components has high importance, because each element has a risk level for creating sustainable ...

Chapter 2: Literature Review

Introduction The chapter consists of all the relevant information that can be collected from past studies and are combined to present a clear view. It is the initial for determining the factors that can be used to synthesize the overall study through findings and discussion. The positivist approach is used to collect and summarize the information from the previous studies and determine the model that can be used to conduct a viable study. The positivist approach emphasizes all the relevant information regarding the topic that is to compare Islamic and Traditional banks using data envelopment analysis. The theoretical framework ...

Mitigation of cyber attacks

Introduction The development of internet technology has both advantages and limitations on global development. The major drawback associated with advancement in internet technology is the cyber crime, which is globally on a rise (Weimann, 2006). Cyber terrorism poses serious threats to the security of both private companies and government institutions. Cyber attacks involve unauthorized access to critical information as well as the infrastructure of business organizations and public institutions (Weimann, 2006). The resultant effects of cyber attacks are numerous, and they make both private and public entities more vulnerable to collapse (Osipenko, 2004, p 46). Thus, these institutions adopt ...

Introduction

The Bank of America is one of the largest financial institutions in the United States of America. In accordance with 2015 reports, the company was the twenty-third biggest company in the United States in terms of gross revenue. When the company acquired Merill Lynch in 2009, it became one of the most significant wealth and investment management corporations in the world, demonstrating 10-12% increase of its assets and portfolio annually (Bank of America, 2016). Holding more than 14% of all banking deposits in the United States, the firm has presence in all regions of the United States and in ...

Company and Situation

According to Cadieux (2010) the worst recession since the 1930s started at the end of 2007 and was at its peak by the fall of 2008. Several businesses were shattered are some were facing serious economic challenges because of the financial crisis. Government offered various bailed out packages to save financial institutions from huge loss. The packages were offered by providing loans, equity, and guarantees. Goldman Sachs was one of the companies that suffered a great loss. Goldman Sachs is an American financial institution that provides financial services to its clients globally. Goldman Sachs took part in cheap credit ...