Essays on Lending

Chapter III

This chapter will review the background of Real Property Law in the Kingdom of Saudi Arabia. In order to lay the foundation for comparisons in subsequent chapters, the elements of the Saudi judicial system and real property law will be reviewed. The background information pertaining to Saudi Arabia will feature the judicial court system, the property rights and real property ownership. A review of the current mortgage law in Saudi Arabia will be analyzed as well as possible reform to include the application of anti-deficiency laws.

Introduction

Saudi Arabia is governed by a monarchy. Its current legal system under the ...

[Submission Date] This paper is written to present a short summary of an article titled “The coming debt bust” that was published on 7th May 2016 in a magazine named “The Economist.” The article presents the concrete reasons for which the Chinese economy has been facing financial troubles. Such problems may continue to rise if the prevailing financial situation (concerning debt and lending practices) in China is not controlled to an optimum level. The article presents that after the global financial and economic crisis of 2008, China’s debt level increased where the debt-to-GDP ratio increased to an alarming ...

Aboriginal peoples and communities are among the first inhabitants of Canada and are thus considered as one of the founders of Canada. Aboriginal peoples already had legal systems and governance structures even before European settlers arrived in Canada. With the advent of European settlers, Aboriginal peoples were forced to either assimilate to the foreign systems and culture or ignore the immigrants and keep their culture. The latter, however, resulted in conflicts between the European settlers and the local Aboriginal communities. Such conflicts were settled through the signature treaties. However, the signing of the agreements did not guarantee that the ...

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 ...

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 ...

Question 1: Why Cartwright Lumber Company needs cash

Despite the profitability of Cartwright Lumber Company, it still faces cash flow challenges. The financial statements indicate that the company has a low balance in its cash account. Profitability does not necessarily mean the firm has a stable cash flow. The income statements indicate that Cartwright Lumber has been profitable in each of the years from 2001. The net income has increased from $31,000 in 2001 to $44,000 in 2003. However, its cash balance has declined in each of the years. Large sales and profitability do not automatically translate into cash flows. The company has large balances ...

1. Misconceptions Money generation remains central to economic activity. The process of how money is generated / created and destroyed is not, in fact, readily understood and is subject to numerous misconceptions. If anything, main conceptions about money creation and destroy assumes a linear conceptualization mode. Typically, money is widely – but mistakenly – believed to be created and destroyed by a direct relationship by which an owner places money deposits in a financial institution which, sooner or later, lends money to borrowers and hence creates more money. In modern era, particularly in a global financial system in which financial transactions ...

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 ...

The Federal government has limited options to address economic issues. These are generally described as “Fiscal policy” and “Monetary Policy.” In the most general terms, fiscal policy involves government tax and spend programs. The underlying theory is that tax cuts increase consumers spending ability by leaving consumers with more money and government spending provides a more direct stimulus by injecting money into the economy. Fiscal policy is generally identified under the popular “Keynesian Economics” label. Monetary policy, on the other hand, involves the central bank (the Federal Reserve Bank system, or “the Fed”) “adjusting” the money supply through interest ...

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 ...

CHAPTER II

This chapter will seek to conduct an absolute inquiry into what makes up security interest laws in the United States. In order to lay the foundation for comparisons in subsequent chapters, the three main elements of the study of the Saudi system will be reviewed here in the context of U.S laws with an emphasis on California state law. The features of the California legal system will include the assessment of foreclosure rules and patterns in California. This will include a detailed fact-based evaluation of CCP580 (b), CCP580 (d) and CCP726 (a). The different components will enable the study ...

Introduction

Natural law theory and positivism are two approaches to thinking that differ in the basic legal principles and rules on the treatment of law. Principles and rules influence English jurisprudence and the administration of justice through the attitudes, perspectives, approaches, decisions and pronouncements of judges and jurists. Natural law theory and positivism dominate respective areas of English jurisprudence and adjudication process, but these approaches may also simultaneously exert influence to raise issues and cause developments in other areas.

Influence of Natural Law Theory

Natural law is “the order of the dynamic tendencies that are proper to man as a rational being”. The rule of ...

Deficit spending refers to the spending of funds more than the income. In government, deficit spending occurs when the government expenditure exceed the revenues collected over a specified fiscal period (Investopedia, 2016b). An important note on government deficit spending is that it begins at the budgeting stage where the government plans to spend more than it expects to get in revenues. The consequence of this is that the government has to borrow even with the achievement of the highest estimates in revenue collection. The government finances the deficit through two main ways. Traditionally, the major method of meeting the ...

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 ...

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, ...

Relationship between inflation and interest rates

Introduction Predominantly, most economic agents base their decisions on the current and expected changes in the economic conditions. Variations in interest rates have been used as a major variable by most researchers and policy analysts. Additionally, the behavior of interest rates in the economy has been studied since the interest rate is a significant macroeconomic factor to help in the understanding of how it is related to other macroeconomic variables and its impact on the economy. Primarily, interest rates entail the percentage of the loan that lending institutions charge as interest to borrowers, and it is mostly expressed as ...

Money and prices in the long run and open economies dictate the financial market. As such, that is why factors such as domestic variables and foreign monetary policies are over-emphasized. Demand for money is thus affected by the domestic variables, which include interest rates, price expectations, and permanent income, among others. As such, this paper explores the financial market to reveal the viable strategies the US can adapt to secure reliable money and prices in an open economy on a long-term basis.

The state of US Financial Market

Over the years, the economy of the US has been in good shape, especially when compared to ...

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 ...

The internet retail banking business has been growing ever since Zopa’s (Zone for People’s Agreement) emergence in the UK in 2005. The retail banking business was already effective with the traditional banking system. Zopa introduced the concept of lending of money to a pool of people who borrowed. The system is operating strategy included the use of the internet as a channel of borrowing and lending money depending on credit worth examination. Like many other banking systems, the borrowers would have to be subjected to a creditworthy analysis to avoid fraud. The system includes registering the lender ...

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 ...

Eclectic Forecasting Research Paper

1. The year 2007 is the third year of a series of three consecutive years of broad-based growth in the world. Although developed economies and underdeveloped economies had a world average growth of 3.4 % in 2007 with a previous growth of 4.9 in 2006, the perspective for that year was to an increase in the world growth in 2008 with a value of 3.6% (QUOTE). In the year 2006, 96 of 159 economies of the world increased their gross domestic product with a value higher than 3%, and only nine countries had a negative growth in 2006. The challenge ...

Abstract

The US economy thrives on the proper functioning of the monetary policy of the government of the day. Interest rates, inflation and recession are all related and happen to influence proper functions of the government warranting their clear understanding. As a victim of a recent economic recession, a consideration of the role of interest rates on the overall functioning of the economy becomes particularly important. This paper shall seek to understand the concept of interest rates and how they affect the economy of the United States of America. The paper, in doing this, shall consider the causes of the ...

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 ...

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 ...

Introduction

The low cost carriers (LCCs) have been enjoying very fast growth in the past several years. Airlines like Ryan Air, Southwest, Lion Air and Asia have become dominant forces in their respective regions. Opportunities for growth and expansion abound especially in the light of changing consumer preferences and habits stemming from the global financial crisis. To take advantage of emerging opportunities, Air Asia needs to go public and raise funds for expansion. While its business model has so far been very successful, certain aspects of it operations and business model need to be modified for it to be able ...

Time and again, the history of consumer debt in the United States has been given the time and attention of many researchers although not too many have looked into the state of personal debts in the country and its evolution. In his book, Louis Hyman attempts to resolve this case, looking back into the personal credit of the Americans for the past 200 years. Hyman checks the four connecting themes: the many that consumers make their purchases, the institutions that grant personal loans, the government’s role in personal financing, and the development of technology that has paved the ...

1.0 Introduction Citi Group (Citi) has taken a bad hit during the financial crisis in 2008, which it continues to shoulder today, almost a decade later. The appointment of current CEO Michael Corbat in 2012 pushed the company back to the path of better reduction of non-profitability, which finally broke through in 2015 when Citi finally made positive profits beyond its 2015 breakeven target. The succeeding sections explored this journey of challenges and promises as clearly as possible. 2.0 Mission and Vision: Impact to Primary Stakeholders Citi’s vision and mission focuses on the customer as a financial services ...

Introduction

In late 2007, the Dow Jones Industrial Average (DJIA) closed at a record low. Stock markets around the world nose-dived alongside the DJIA. Turbulence in the sub-prime segment of the US housing market, paralysis of the credit markets, excessive lay-offs in organizations, steep decline in investments etc. were all some of the indicators that the world was heading for a massive credit crunch. In the words of Mr. Strauss-Kahn, head of IMF, “Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown” (BBC ...

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 ...

Importance of underwriting standards to healthy real estate finance markets

Underwriting standards refer to guidelines established for ensuring that secure and safe loans are maintained and issued. The standards are crucial in setting the benchmarks on how much the debts can be issued, the loans’ terms, how much a company is ready and willing or can afford to issue as well as what rate of interest is to be charged. The standards complement the Banks’ Acts, Loan and Trust Acts, Cooperate Credit Association Acts, Insurance Companies Acts’ relevant provisions and the governments’ mortgage insurance frameworks that are guaranteed and which establishes rules for the insured mortgages that are government-backed ( ...

International Risk Management

Introduction Despite majority of the participants in global business arena associate German economy with efficiency and high quality, yet if the U.S. companies consider operating in this particular marketplace, they must be well-informed of different business risks. Therefore, this research paper is aimed at highlighted different business and operational risks which a U.S. based company might face while operating in Germany.

Exchange Rate Risk The very first risk that the U.S. based company has to face in Germany pertains to the fluctuations in foreign exchange rate against the domestic currency. In case, the U.S. dollar appreciates against Euro, the ...

How to Reform Corporate Ethics in American Business Today

Corporate ethics is an important sphere of American business the regulation of which is of utter importance. It comprises the rules how the company operates: its management, control and responsibility for improper actions. The regulations of corporate governance and implementation of effective corporate ethical standards affect the situation of the economy of the state. Inefficient regulations may lead to huge problems, such as the Great Depression of 1933, ENRON case of 2007, global financial crisis of 2008, because of which the whole world economy was negatively affected, a lot of investors were defrauded, money stolen and etc. Scholars believed ...

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 ...

The conservatives promoted the idea of rebuilding the American capitalism, which seemed to have faltered during John K. Galbraith’s influence of “affluent society”. Conservatives thought that Galbraith’s doctrine meant rolling back the government and shrinking its size in radical terms to manageable levels including removal of massive programs like social security (Karaagac, p. 31-47). Conservatives never thought in these terms, rather, they thought of more efficient ways. They wanted to see the government function better, and not simply reduce its size. Further, they wanted the government to least intrusive in people’s daily lives, as individuals would ...

Who are we? The National Bank of Canada is an incorporated group that offers an inclusive financial service to clients. Its customers are small, medium-sized firms and big corporations that are in the major market of the bank while providing special services elsewhere around the globe. The NBC offers a full range of services such as corporate, and investment banking in this sector. Moreover, it is considered as an active player on the world markets. What do we do? The bank participates in the brokerage of securities, management of wealth, the mutual fund and the retirement plan arrangements as ...

Fear is an emotional response to various situations that people experience in their lives. Just like any other emotion felt by a person, fear and apprehension are normal and natural to occur. However, to experience fear upon coming across a new venture or trying something for the first time is pretty natural to people nowadays. It might be common to anyone who is going to try something new in life, to have a certain apprehension about it. A feeling of reluctance and hesitation kicks in which makes a great room for fear. People will experience fear because of many ...

The Step of the Risk Management Process

The risk management process is comprised of five core steps. The first is the identification of risks. At the heart of this phase is to identify what is likely to hinder the ability to meet the targeted goals. After the risk has been identified, the next step is to analyze it. This stage requires one to determine the probability and the consequences of the identified risk(s). It assists a person or a group to understand the inherent nature of the risk along with the potential effects on the set goals. The third step is the risk ranking or ...

Openness and free trade are one of the vital economic practices because nations can import and export products and services without the government restrictions. These limitations include tariffs, restrictions, and bans associated with exports and imports. In developing countries there stand to befit a lot from the free trade because of their low levels in the standard of living and availability of resources. Developing nations have room for expansion in their economies through agreements involving strategic free trades. These are some of the benefits of free trade. Improved living standards: as a result of free trade, the citizens of ...

1) Which were the primary causes of the Great Depression? According to Walton and Rockoff, an acceptable explanation for the Great Depression has to distinguish between the initial forces, which brought a downturn in financial activity, and later events, that turned a downturn into a calamity. We can detect two issues on the economy that foreshadowed the real slump in economic activity. First, there was a decline in the construction industry that began 1925, that had a significant impact on the depression. Second, the agricultural sector suffered greatly, with falling world prices and massive indebtedness (422). Walton and Rockoff ...

Working Capital Guarantee Program

Working Capital Guarantee Program allows the exporters to unlock or overcome any working capital hindrance before the shipment of their consignment. Important to note, while the entire program is operated by the commercial lenders, it is backed by Export-Import Bank’s guarantee. This business friendly program allows the exporters to purchase raw materials, suppliers or equipment to fulfill the export orders committed by them. In addition, the funds obtained can be used for positing bids and performance bonds. Many commercial banks have now expanded the authorized channelizing of the funds obtained under the program for the issuance of standy ...

Conclusion about the economy

The conclusion made after the April 27th FOMC meeting is that the interest rates paid were to be left unchanged while the excess reserves balances will be charged a 0.50 percent. In addition, as a decision policy, the board voted towards authorizing and directing the Open Market Desk at New York’s Federal Reserve Bank and until further instructions are given, the transactions will be executed in the System Open Market Account. This will be in accordance with the domestic policy directive that was earlier initiated. Ensuring that interest rates are not increased will foster economic development as firms ...

Introduction to Mongolian Financial Institution System

Introduction Following seven decades of communist rule, Mongolia adopted democracy in 1990, closely followed by a shift to a market economy (Wagner). The transition has been beset with turmoil, and the Mongolian financial system has undergone crises in ‘1994, 1998 and 1999’ (ADB), primarily due to the government’s predilection of interfering in the lending policies of banks and directing credit to poorly performing enterprises. More recently, the global financial crisis of 2008 and a drop in copper prices triggered another financial crisis in Mongolia, prompting the government into entering a standby arrangement with the IMF till 2010. The ...

China and Russia are two significant members of the group known as the BRICs. The other members are India, Brazil and South Africa. While China seeks to use its economic influence in buying world power, Russia seeks to regain its lost political influence by challenging the United States and Western Europe. This paper seeks to examine and explore China’s use of economic incentives in the form of cheap loans to gain influence in Sub-Saharan Africa. It also examines Russia’s constant antagonism with the United States and its allies in Eastern Europe and the Middle East. The argument ...

Part 4 and Part 5 Final Paper

Actual changes that are eminent in the expounded Chapter three of ‘A History of Usury and Debts’ entails an in-depth insight of the connection between war, capitalism, Protestants as well as their significance in the development of banking and debts around the world, an ordeal which reflects the current status of financial markets. The author well explains Protestants' connection to usury and debt, and how the selection from the Roman Catholic influenced other themes in the chapter, such as war and capitalism (Geisst 107). Actual changes include the way the three themes related in the previous part is construed ...

The Savings and Loan Crisis, or commonly known as S&L, is termed as one of the largest financial crisis in the United States history. The crisis began in the late 1970s, and its impacts on the economy were felt in the 1980s and ended in the early 1990s. Various sources have indicated the causes of the S&L crises. Some of the documented reasons include high and volatile interest rates during the period, the phase-out and its elimination, negative regional economic conditions, and federal and state deregulation of depository institutions. Other reasons include deregulation of the thrift industry, declining regulatory ...

The film Too Big To Fail (2011) tells a story of the events that took place in 2008 in the financial industry in the USA when several largest financial service companies including Lehman Brothers faced bankruptcy due to the subprime mortgage crisis that hit the USA. Lehman Brothers was the fourth largest bank in the USA and it was surprising to see that the Federal Reserve did not help this bank to survive by offering extensive financial support. Instead the Federal Reserve wanted to make the other largest banks like Goldman Sachs, Merrill Lynch, etc. to purchase Lehman Brothers ...

The process of borrowing a loan from any bank begins with an expression of interest by the borrower to borrow such funds as he might require. Thereafter, it is the obligation of the lending institution, Community bank in this case, to conduct an objective and fair evaluation of creditworthiness of the borrower. The credit evaluation process is a clearly outlined procedure that varies from one creditor to another and it seeks to ascertain the degree and ability of the borrower to repay the borrowed funds as agreed at the time of borrowing. ("eCFR — Code of Federal Regulations", 2016) The ...

Geisst R. Charles’, Beggar Thy Neighbor: A history of Usury and Debt.

Part 2: Description of Expected Plans of Revisions and Expansions.

This paper primarily focuses on examining the three themes that dominated the era of usury and debt. The segregation of Protestants from the main denomination, that is, the Roman Catholic Church, the subsequent wars and Capitalism are some of the major things witnessed during that era. This paper will explore the major themes while having a look whether there exist any form of connection between them. From the Authors point of view, there is a connection between the three themes therefore he discussed them as a single ...

Introduction

The exchange rate is a very significant economic variable that all markets keep a close watch. Exchange rates are influenced by multiple factors both political and economic. A variation in exchange rates implies that the reference currency has become weaker or stronger against the underlying currency. The Japanese Yen has experienced numerous stability swings against other currencies over the past here decades. The worst point in the era experienced by the Yen was in the early 1980’s when the Yen weakened to trade at as low as between 200 – 270 yens per dollar. This condition persisted until after ...

Credit Risk in Retail Banking

Credit risk is defined as the probability that borrowers will not be able to make payments on borrowed funds. Credit risk combines both the uncertainty regarding the failure of a borrower to make the payments, as well as the expected time taken to make the payments . Retail Banking, more commonly known as Consumer Banking, is offering banking and financial products and services to individual investors or customers. Consequently, there are different types of credit risks involved that these institutions have to deal with. This includes cases in which a customer is unable to make the due payments at a ...

Issues of Competition an Expansion of the Customer Base

This research project entails a critical review, analysis and subsequent discussion of the major competition issues as well as the expansion of the customer base within the banking sector with a specific focus on the interstate banking framework in the United States. The need to carry out this research was informed by the realization that the introduction of the interstate banking framework has revolutionized the financial sector in the United States and created competition issues as well as the expansion of the customer base factors that are unique to this framework in comparison to the previous framework where banks ...

Executive Summary

This research project entails a critical review, analysis and subsequent discussion of the major competition issues as well as the expansion of the customer base within the banking sector with a specific focus on the interstate banking framework in the United States. The need to carry out this research was informed by the realization that the introduction of the interstate banking framework has revolutionized the financial sector in the United States and created competition issues as well as the expansion of the customer base factors that are unique to this framework in comparison to the previous framework where banks ...

Introduction

The year 2007-08 brought nightmares for the US economy and its participants because least anyone had expected that the world’s biggest economy will cripple and face the worst ever recession after the Great Depression of 1929-1930. While Wall Street lost more than trillion dollars in value, thousands of Americans were left unemployed and the businesses, even the one who had more than 100 years of their presence in the United States, were filing for bankruptcy. On the other hand, Federal Reserve Bank, which once cited economic bubble as the natural event that cannot be prevented( courtesy the ideology ...

Business Internship Report

Business Internship Report

I come about the Bank of China internship opportunity through the company website. It offers a three months and six months internship in various departments at least two times a year. The application for the internship was online, giving my details and credentials to the career application form on the website. The response for the internship was three days later. I received, and email confirmation that my application was received, and they would like to do an interview the following week on Monday from 9.30 am. Five members of staff did the interview. I introduced myself, ...

Gupta and Goldfajin defined a tight monetary as “a case in which real interest rates in the aftermath of the crises are higher than the average real interest rate during the 24 months preceding the crises”(Goldfajn and Gupta, 1999, p.4). The primary objective of ensuring that the monetary policy is tightened is to make sure that the supply of money in the economy is reduced and also to ensure a conducive environment for businesses. For a commercial bank to lend money, there are a lot of factors that it considers. Some of the factors include the volume of ...

Abstract

Managing small businesses is a complex undertaking that requires skills and perseverance. This is based on the understanding the small businesses face some challenges that are unique. Some of the key issues include limited access to funds, limited access to professional skills, and overdependence on the family. The small business managers also complain of long working hours and the need to be present in the running of the business. They also lack perpetual existence, which further complicates the succession politics. The owner has to constantly worry about how the business will perform if he or she dies. This paper ...

International Financial Management Assessment

International Financial Management Assessment

International Monetary Fund (IMF) is an international financial organization that works closely with member countries to foster global monetary cooperation, facilitate international trade, secure financial stability, reduce poverty and promote high employment and stable economic growths. Together with the World Bank, IMF was formed in 1944 during the Bretton Woods Conference, though it formally came into existence in 1945. The organization is headquartered in Washington DC. Member countries contribute funds to the IMF’s financial pool, and any country that experiences difficulties in its balance of payment can borrow the money (Conway 2006). Macroeconomic stabilization ...

Finance

2016-04-19

Introduction

This paper is devoted to the possible spillover effects between the usual banking and existing shadow banking systems and the impact of regulatory policies on the shadow banking system. The usual banking system consists of the banks and regulatory agencies. In comparison, the shadow banking system is a set of financial institutions, which are not banks, but perform their functions. The issue of the shadow banking system has become more important after recent global financial crisis. The Financial Stability Board has been established at that time. According to experts of this organization, various aspects of the shadow banking ...