...exposures, including foreign exchange, interest rate, and credit risks. By allowing investors to unbundle and transfer these risks, derivatives contribute to a more efficient allocation of capital, in many cases reduce market and portfolio volatility, facilitate cross-border capital flows, and create more opportunities for portfolio diversification. Despite rapid growth over the past several years, Emerging Market (EM) derivatives account for only about 10 percent of the total outstanding notional values in global derivatives markets. Compared to mature markets, the ratio of outstanding notional value of derivatives to market capitalization of the underlying asset markets is fairly small in most emerging economies and is mainly focused on sovereign risks. The most common issues that challenge the development of local derivatives markets are (i) relatively underdeveloped markets for the underlying assets; (ii) lack of adequate regulatory, legal and market infrastructure, and (iii) restrictions on the use of derivatives by local and foreign entities.2 The problem of misuse of derivatives is perceived to be more acute in emerging market countries where prudential regulation, credit information infrastructure, and risk management practices are not fully developed and maybe in conflict with reasonable economic, investment or portfolio objectives. This note provides a background for a discussion on policy measures to promote the benefits of derivative markets in EM countries, while acknowledging...
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...Economic Environment This Unit covers the second of the PESTLE elements LEARNING OUTCOMES The application of trade theory to explain the benefits of engaging in International Trade Economic Implications of a country’s membership of a trading bloc for a business Compare the various types of Foreign Direct Investment (FDI) and analyze how they may affect the various countries involved as well as the businesses within these countries INTERNATIONAL TRADE THEORY Four Theories of International Trade are: Absolute Advantage Product Life-cycle Theory New Trade Theory Porter’s determinants of National Competitive Advantage MERCANTILIST THEORY States that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports. Aim is to maximize exports and minimize imports. Rest on the idea that if one country gained, then another must lose. MERCANTILIST THEORY Problems : This theory excludes the fact that in some cases it is good to import. By discouraging import the population will have to do without certain consumer items. ABSOLUTE ADVANTAGE This concept is generally attributed to Adam Smith . Refers to the ability of a country/firm to produce greater output of a good or service than other countries/firms using the same amount of resources. Smith argued that a country should specialize in producing those goods/services for which it has an absolute advantage. Countries would benefit/gain...
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...chapter is to help students understand what the international monetary system is and how the choice of system affects currency values. It also provides a historical background of the international monetary system. This enables students to gain perspective when trying to interpret the likely consequences of new policies in the area of international finance. This chapter describes how exchange rates are determined under four different mechanisms--free float, managed float, fixed-rate system, and target-zone system. Under the latter three systems, governments intervene in the currency markets in one form or another to affect the exchange rate. Key Points 1. Under the latter three systems, which involve varying degrees of central bank intervention, the real exchange rate is liable to change, with important implications for exchange risk management (as discussed in Chapters 9 through 11). 2. Regardless of the form of intervention, fixed rates don't remain fixed for long. Neither do floating rates. The basic reason that exchange rates don't stay fixed for long in either a fixed- or floating-rate system is that governments subordinate exchange rate considerations to domestic political considerations. 3. The gold standard is a specific type of fixed exchange rate system, one that required participating countries to maintain the value of their currencies in terms of gold. Calls for a new gold standard remind us of the fundamental lack of trust in fiat money due to the...
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...Industry: Depository Institutions Overview • In this chapter, we explore two major depository institution (DI) groups: – Banks, and – Non-bank depository institutions. • We focus on the major characteristics of each group: – Size, structure and composition of industry group, – Balance sheets and recent trends, – Regulation. • In Australia, the Australian Prudential Regulation Authority (APRA) authorises financial institutions to carry out financial intermediation. Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Financial Institutions Management 2e, by Lange, Saunders, Anderson ,Thomson and Cornett Slides prepared by Maike Sundmacher 1-2 Products Sold by the Financial Services Industry • Comparing the products of DIs in 1950 and 2006: – Much greater distinction between types of DIs in terms of products in 1950 than in 2006. – Blurring of product lines and services over time. – Wider array of services offered by all DI types. – Refer to Tables 1.1A and 1.1B in the text. Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Financial Institutions Management 2e, by Lange, Saunders, Anderson ,Thomson and Cornett Slides prepared by Maike Sundmacher 1-3 Banks • Banks are the largest depository institutions in terms of size. • Major difference between banks and credit unions/savings institutions: banks have more varied assets and liabilities. • Differences in operating characteristics and profitability across size classes –...
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...direction, guidance and support helped me a lot in writing this report. It was a great pleasure for me to work in Southeast Bank Limited (Gulshan Branch) as an intern. I thank all the employees for being friendly and cooperative. I was taught lots of important things through-out my internship career because of their proper attention and co operation. My deepest appreciation and special thanks goesto Mr. A. K. M. NurulAlamDeputy Managing Director the Head ofGulshanBranch, Mr.Md. HamidulHaque the Manager Operation of Southeast Bank Ltd Gulshan Branch, for extending their support in compiling this report. At last I must mention the wonderful working environment and group commitment of this bank that has enabled me a lot deal to do and observe the banking activities during my internship period of three months. Finally I convey my sincere thanks to my friends who inspire in different ways to complete the report and the course as well. 2.Executive Summary As a student of Bachelor of Business Administration (BBA) everyone has to conduct a practical orientation in any organization for fulfilling the requirements of the 12 weeks Internship Program. The main purpose of the program is to expose the students to the real world situation.I was assigned to pursue internship on the “Total Banking Analysis”of Southeast Bank LtdGulshan Branch Dhaka. There are some differences between theories and practice. Due to complete the report, I worked at...
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...THE RECENT CRISIS AND RECOVERY OF THE ARGENTINE ECONOMY: SOME ELEMENTS AND BACKGROUND Arturo O’Connell Universidad de Buenos Aires and Università di Bologna a Buenos AiresT 1 Argentine-Australia Economic Conference Buenos Aires, April 2007 Draft version; not to be quoted without permission from the author Introduction The Argentine crisis could be examined as one more crisis of the developing countries – admittedly a star pupil that had received praise from many sides – hit by the vagaries of the international financial markets and/or its own policy mistakes. illumination. But it could even be more interesting to examine the peculiarities of the Argentine experience – always in that general context – which did add to the difficulties other economies have faced and that have made it such an intractable case for normal medication. And not only those peculiarities and their consequences should better been pinned down. But also an attempt should be made at understanding that they were not just a result of the extravagance of that far away people in one Southern end of the world. This paper is organized in the following way. In the first section a brief And to a great extent that is a line that could provide some examination of some long-run trends in the Argentine economy is introduced. The next section is an attempt at a thorough examination of the performance of the Argentine economy in the 1990’s and the development of some severe imbalances eventually leading to an unsustainable...
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...\ eighth edition Global Business Today CharlesW. L Hill University of Washington McGraw-Hill Irwin contents PREFACE xiii PART ONE Chapter One Introduction 4 What Is Globalization? 6 The Globalization of Markets 6 The Globalization of Production 7 The Emergence of Global Institutions 9 Drivers of Globalization 11 Declining Trade and Investmen t Barriers 11 The Role of Technological Change 14 The Changing Demographics of the Global Economy 16 The Changing World Output and World Trade Picture 16 The Changing Foreign Direct Investment Picture 18 The Changing Nature of the Multinational Enterprise 19 The Changing World Order 22 The Global Economy of the Twenty-First Century 23 The Globalization Debate 24 Antiglobalization Protests 24 Globalization, Jobs, and Income 26 Globalization, Labor Policies, and the Environment 28 Globalization and,National Sovereignty 29 Globalization and the World's Poor 30 Managing in the Global Marketplace 31 Key Terms 33 Chapter Summary 33 Critical Thinking and Discussion Questions 34 Research Task 34 Closing Case: Legal Outsourcing 35 Introduction and Overview 2 Globalization 3 PART TWO Chapter Two Country Differences 36 National Differences in Political Economy 37 Opening Case: Ghana: An African Dynamo 37 Introduction 38 Political Systems 39 Collectivism and Individualism 39 Democracy and Totalitarianism 42 Economic Systems 44 Market Economy 44 Command Economy 45 Mixed Economy 45 Legal Systems 46 Different Legal Systems 46 Differences...
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...years back Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four ‘Focus Groups’ were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produced a document that would be a basic risk management model for each of the five 'core' risk areas of banking. The five core risk areas are as follows- a) Credit Risks; b) Asset & Liability / Balance Sheet Risks; c) Foreign Exchange Risks; d) Internal Control & Compliance Risks; and e) Money Laundering Risks. Bangladesh Bank in one of it’s circular (BRPD Circular no.17) advised the commercial banks of Bangladesh to put in place an effective credit approval and monitoring system by December, 2003 based on the guidelines sent to them. In my study, I would try to put forward my findings about the “Credit Management Policy of Bangladesh Bank, and its implementation”. To illustrate my point, I am giving the example of Bank Asia Limited. 2. Objectives of the study. Broad objective: ❖ The broad objective is to know the Credit Management Policy of Bangladesh Bank. ❖ To analyze...
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...September 9, 2013 Accounting is the information system which records, summarizes, and reports the underlying economic conditions of an entity. Financial accounting is used to report this information to external parties [managerial accounting is to use this information internally]. Financial statements are management’s report to owners. 3 profit-seeking entities: Sole proprietorship simple to establish, owner controlled Unlimited liability (no legal separation). All profits and losses belong to owner, report income on tax returns. Business ends if owner dies, can sell it. Easy and inexpensive to operate. No reporting requirements. Partnership simple to establish, shared control, broader skills and resources Two or more owner-managers. Want a formal agreement covering $ contributions, workload, withdrawals, decision-making. Each partner’s net income reported on his or her personal tax form. No tax advantage. General Partners: have unlimited liability (person A and B legally connected). Limited Partners: limited involvement, limited liability (LLP at the end of the name). Ends if the partners die or dissolve it, can try to sell your portion. Corporation Easier to transfer ownership, easier to attract investors, no personal liability, tax advantages possible. Separate legal entity from owners. Owners called shareholders. Limited liability. Can only lose investment, not personal assets. Taxed separately from owners:...
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...Conclusion: Lessons Learnt/Recommendations 5. References 1. Executive Summary: National Australia Bank (NAB) is the largest business bank in Australia and the fourth largest retail bank (by total assets) with net operating profit of $A6728 million in 2011. However, due to already competitive trading environment, every major banking institution is beset by increasing pressure on their trading performance – and NAB is no exception. NAB has responded to these challenges by increasing its proprietary trading positions within the Corporate & Investment Banking division, which was in contrary to the customer-focused strategy. The traders engaged in large unauthroised transactions with minimal supervision, which turned into fraud and significant trading loss due to volatile market conditions. However, the integrity of the traders was not the sole cause that led to the $360 million loss. Along with NAB’s unreliable internal risk and control framework and an inappropriate level of governance, the traders exploited the loopholes within NAB’s operations and created fictitious transactions. These were not discovered immediately due to the lack of oversight from the senior management and a complacent corporate culture. The findings and analysis outlined in this case study report addressed the major risk management issues ASB Trading Enterprise needs to learn from the NAB foreign exchange trading loss as well as an enhanced corporate governance approach within the...
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...NSU Library System MIS 205.10 Group Number: D Md.Tanjil Islam 121 0690 030 Soumik Saha 122 0191030 Rafid Habib 122 0318 030 Md. Ali Noman 122 0385 030 Md. Fakrul Alam 122 0185 030 Table Of Content Serial Number | Content Name | Page Number | 1 | Introduction | 1 | 2 | Resources | 1-2 | 3 | System Architecture | 2-3 | 4 | RFID technologies for libraries | 4-5 | 5 | Advantages of RFID system | 6-7 | 6 | How North South Library System works | 8-10 | 7 | New innovation through RFID system | 10-11 | 8 | Proposed system | 12-14 | 9 | System design | 15-19 | 10 | Software testing | 20-21 | 11 | Conclusion | 22 | 12 | References | 23 | Introduction North South University (NSU) Library grew over the years since 1992 and now has become one of the best university libraries in the country. This is the first fully automated university library in the country using Bi-lingual Library Management Software, developed by NSU Library, which supports MARC-21, web-based online lending and receiving, browse databases of books, CDs, journals...
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...from the Eurozone Member States and IMF 14 8.3 Why didn’t Greece leave the Euro? 15 9.Recommendations 17 10. References 18 1.Introduction The euro (symbol: €; banking code: EUR) is the currency of 17 EU member states. It was launched on 01.01.1999 virtually, but physically launched from 01.01.2002. The currency is the second most traded currency after the US dollar. The currency is used by around 332 million people daily. €915 million in circulation, highest combined value of Bank notes in circulation in world. The countries that use the euro are Finland, Austria, Belgium, Cyprus, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. If you are planning a trip to Europe then the euro is the currency you will need for most of the locations you visit. There are additional countries that will accept the euro even though there is no formal agreement to do so. It is managed and administered by Frankfurt based European Central Bank. 2. History In 1969 Commission and EEC head of State propose monetary union “Werner report” by the end of 1970 by “Bretton Woods Systems”. But collapsed .The Bretton Woods’s system had already begun to show signs of strain in the late...
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...Harvard Business School 9-799-131 May 4, 2001 European Monetary Union In the spring of 1999, Romano Prodi, newly designated chairman of the European Commission, prepared to help create an economically integrated Europe. Since the introduction of the euro on January 1, Europe had been operating with a single currency—at least for business-tobusiness transactions. Despite some technical problems with the changeover and an 8% depreciation of the euro against the dollar, this extraordinary step toward integration had gone fantastically well. Western Europe continued to experience healthy growth—in excess of 2% annually—and the Commission was expanding its plans to further integrate Europe’s markets. But before real integration could be achieved, many more reforms would be needed. While the Commission recently concluded that “thanks to the Single Market Programme, today’s European 2 product markets work much better than they did in the 1970s,” they still exhibited wide price differentials, diverse regulations, and a lack of inter-European investment and competition. Capital markets had moved further, as members of the European Union had dropped regulations and encouraged competition across national borders. But even here, prices and margins remained high, and inter-European rationalization had only just begun. Finally, the markets for labor had barely begun to integrate. Here, high minimum wages, payroll taxes, unemployment benefits and diverse restrictions on flexibility...
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...NON-PERFORMING ASSETSCHALLENGE TO THE PUBLIC SECTOR BANKS INTRODUCTION After liberalization the Indian banking sector developed very appreciate. The RBI also nationalized good amount of commercial banks for proving socio economic services to the people of the nation. The Public Sector Banks have shown very good performance as far as the financial operations are concerned. If we look to the glance of the financial operations, we may find that deposits of public to the Public Sector Banks have increased from 859,461.95crore to 1,079,393.81crore in 2003, the investments of the Public Sector Banks have increased from 349,107.81crore to 545,509.00crore, and however the advances have also been increased to 549,351.16crore from 414,989.36crore in 2003. The total income of the public sector banks have also shown good performance since the last few years and currently it is 128,464.40crore. The Public Sector Banks have also shown comparatively good result. The gross profits of the Public Sector Banks currently 29,715.26crore which has been doubled to the last to last year, and the net profit of the Public Sector Banks is 12,295,47crore. However, the only problem of the Public Sector Banks these days are the increasing level of the non performing assets. The non performing assets of the Public Sector Banks have been increasing regularly year by year. If we glance on the numbers of non performing assets we may come to know that in the year 1997 the NPAs were 47,300crore and reached to 80...
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...perfect in handling the real business situation, therefore, it is an opportunity for the students to know about the real life situation through this program. The program consists of three phases: ▪ The orientation of the Intern with the organization, its function and performance. ▪ The project work pertaining to a particular problem(s) matching with the Intern’s area of specialization and organizational requirement. ▪ The report writing to summarize the Intern’s analysis, findings and achievements in the proceeding of the followings. As practical orientation is integral part of BBA, I was sent to the Uttara Bank Ltd, Foreign Exchange Branch to have real life exposure on a 90 days internship program (from October 24, 2011 to January 23, 2012. This internship report titled “General Banking and Foreign Exchange Activities of Uttara Bank...
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