...financial industry, and no emerge of any banks that are on the verge of bankruptcy or need government rescue. In this paper, in order to retrospect the intrinsic reasons, I will firstly explore the common features of the banking systems in Australia and Canada. Then I will compare their banking systems in structure and regulation with United States. Finally, the different ways mortgage lending is conducted in these three countries will be emphasized. Common features The common features of the banking systems of Australia and Canada are embodied in the high concentrated banking system along with intensive supervision and sound regulation. It is the common features that contribute to the resilient performance in these two countries’ banks through the global financial crisis. Generally speaking, the whole banking sector in either Canada or Australia is monopolized by a few large-scaled national banks. In Australia, there are mainly four banks, Commonwealth Bank, Westpac Banking Corporation, Australia and New Zealand Banking Group and National Australia Bank, which dominate Australian banking market. They are individually and collectively huge compared with the size of banking system and their total assets are vast compared with GDP. These four banks occupy 75% of the total banking assets and 80% of the residential mortgage market (Jang & Sheridan 2012, p3). Also, due to there are no mergers and acquisitions between top four banks, the major financial institutions tend...
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...Organizational Structure University of Phoenix Organizational Structure Organizational structure is the way a specific organization sets its roles and responsibilities so that it can operate efficiently and pursue its strategic goals. It defines the hierarchy of an organization and determines how roles, reporting structures, and processes, procedures, products, systems, customers, and possibly geographical responsibilities are commissioned and monitored. Organizational structure also directs how information flows throughout the organization. Two types of organizational structures exist, vertical and horizontal. The vertical structure deals with the individuals who possess the authority or right to make decisions. Board of directors and chief level executives, or the top management team, make up the top of the hierarchy. The vertical structure also identifies the span of control, delegation, responsibility, authority, and accountability. The horizontal structure deals with line departments and staff departments set up to work directly with the organizations key products, services, and customers. Within the two types of organizational structures exists four organizations, functional, divisional, matrix, and network. The functional organization allows jobs to be departmentalized around job functions like human resources, customer service, and marketing. The divisional organization allows jobs to be departmentalized around products, customers, or regions. The...
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...Japan. Transnational Banks - International finance institutions which do their business in many countries of the world. - These are special types of transnational corporations whose field of specialization is global banking or international finance. - Their customer are primarily the transnational corporations, governments (mostly developing countries), and rich individuals. Development of Global Banking - Colonial empires, mostly European countries like Great Britain, France, and Spain, established the branches or offices of their financial institutions in their colonies in order to facilitate trade. For instance, during the British colonial empire, banks were put up in their colonies to conduct foreign exchange operations and to supply short-term funds to both exporters and importers. And as trade expanded, banks grew in number. In fact, the British banking system even reached the shores of our country during the Spanish time. - Since England is the cradle of the Industrial Revolution, it started the factory system of production. This made England the leader in international trade. And subsequently, a pioneer in the development of financial institution – later on, global banking. - Other countries followed the footsteps of England. French financial institutions began overseas operations in the 1870s. - German banks likewise participated in international banking in 1886 with the establishment of an overseas bank...
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...Research Proposal University of Phoenix D’Ainsley Smith FIN/711 January 11, 2014 Professor Allen Research Proposal Financial analysis is important for every organization. In the course of financial analysis, it is determines the areas which are to improved by it. Two organizations selected here are Bank of America and HSBC. Both organizations are in the banking sector and have operations in various parts of the world. The organizations work for the purpose of making sure they achieve their targets. The study is conducted for finding out whether these organizations are working appropriately. Background The organization considered presently is Bank of America. This organization is a banking company and engaged in carrying out various kinds of banking operations for customers. “The organization has a total of 57 million clients at the present time” (Carroll, 2007). There are various banking operations carried out by Bank of America. Operations carried out by Bank of America include acceptance of deposits, lending to individuals and businesses, and various financial operations. This organization has been working towards achievement of target goals. For this organization, it is also important to ensure they provide a detailed financial analysis of the company’s operations. The assistance of the financial analysis ensures the company understands and knows their financial position is in...
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...organization structure of a FTSE 100 company and evaluate the reasoning behind its choice. Explain the advantages of this structure against other types of organizational structure. The FTSE UK index series is designed to represent the performance of UK companies, providing investors with a comprehensive set of indices that measure the performance of all capital and industry segments of the UK equity market. HSBC is on the 3rd rank of FTSE 100. History of HSBC HSBC Bank plc and its subsidiaries form a UK-based group providing a comprehensive range of banking and related financial services. HSBC Bank plc (formerly Midland Bank plc) was formed in England in 1836 and subsequently registered as a limited company in 1880. In 1923, the company adopted the name of Midland Bank Limited which it held until 1982 when the name was changed to Midland Bank plc. During the year ended 31 December 1992, Midland Bank plc became a wholly owned subsidiary undertaking of HSBC Holdings PLC (“HSBC Holdings”), whose Headquartered is in London. HSBC Bank plc adopted its current name, changing from Midland Bank plc, in the year ended 31 December 1999. The HSBC Group is one of the largest banking and financial services organisations in the world, with over 9,500 offices in 79 countries and territories in Europe, Hong Kong, the rest of Asia-Pacific, including the Middle East and Africa, North America and South America. Its total assets at 31 December 2009 were £579 billion. The Bank is the HSBC Group’s...
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...of imported capital goods, the neglect of exports, government investment based on foreign loans, the use of petrodollars, and loan pushers, contributed to the growth of external debts in Latin America between 1960 and 1990. Additionally, floating and rising interest rates, and the rise of official corruption only exacerbated the debt crisis they were facing. Latin America had an inward-looking import substitution industrialization policy, neglecting exports, which led to inferior substitutes that were more expensive than products in the global market. In addition, the agrarian structure in Latin America and their under-utilization of resources led to higher manufacturing costs, large scale migration to urban areas, and urban unemployment. The build-up of inefficiency resulting from import substitution industrialization, as well as the problems caused by the agrarian structure in Latin America increased the appeal of looking outward for assistance. By the mid 1970s, the Organization of the Petroleum Exporting Countries had successfully organized their control on exports which led to a phenomenal rise in the price of crude oil. Oil shocks such as the one experienced in 1973 when OPEC quadrupled the price of crude oil meant that Latin America would need more money to satisfy its consumption. On the other hand, the OPEC countries had an abundance of petrodollars that they sought to invest. This lead to loan pushing, a technique used by international banks to sell loans...
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...IV. Corporate Culture What is this powerful force called “organizational culture” that can determine success or failure in an acquisition and merger. It has been defined in various ways that to work with the culture of an organization is to work with all aspects of a company. “It is the traditions, shared beliefs, and expectations about how individuals behave and accomplish tasks in organizations (Cartwright & Cooper, 1993).” All organizations have a culture, and consistent set of beliefs, shared by most of the members of the organization about how people should behave at work and what tasks and goals are important. The culture also includes and is shaped by the pattern of successful internal responses to adapt to external threats and issues. Since, the culture is results of past successes it will resist change even though a change in the environment, specifically a merger or acquisition, might impose a change in the culture. Economic globalization is viewed by some as the best hope for world stability, by others as the greatest threat. But almost everyone accepts that businesses of all types must embrace it. Organizational culture is a big aspect to globalizations. For recent years more and more international companies has merged. There are very successful acquisitions and mergers, but on the other hand, there are also unsuccessful mergers due to the differences of corporate culture. Some factors of the difference of corporate culture that firms need...
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...is necessary. An entity, known as the ‘Servicer’, issues debt securities called Mortgage Backed Securities (MBS) and raises funds. The funds are used to grant home loans or mortgages. The borrowers or homeowners make monthly payments to the services. These payments include both principal and interest components. The servicer transfers these payments to Mortgage Backed Security Holders or the investors after deducting some spread which can be viewed as profit margin or administrative fee charged by the servicers. Generic Mortgage Backed Securities are further classified in different tiers or tranches to suit specific needs of individual and institutional customers. This multiple class or tranche structure is known as the Collateralized Debt Obligation (CDO) structure. CDO structure is a way of redistributing the prepayment risk and credit risk. Rating...
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...Capital Management: Wells Fargo vs. BoA. Bank Management and Financial Services Individual Assignment 2 Report of discussion about banking capital issuecompare 2 banks: Wells Fargo and Bank of America. Prepared by Phan Ngọc Mẫn Student code: FB00422 Class: FB0605. 1|Page Capital Management: Wells Fargo vs. BoA. Content Executive Summary----------------------------------------------------------------------------------3 I. Introduction-----------------------------------------------------------------------------------------------3 1. Theoretical Overview--------------------------------------------------------------------------------------3 a. Bank capital-------------------------------------------------------------------------------------------3 b. Capital Risk of banks---------------------------------------------------------------------------------4 c. Managing capital risk in commercial banks-------------------------------------------------------5 2. Banks’ Profile------------------------------------------------------------------------------------------6 a. Wells Fargo-----------------------------------------------------------------------------------------------6 b. Bank of America-----------------------------------------------------------------------------------------7 c. Differences in economic context-------------------------------------------------------------------7 II. Analysis and Findings-------------------------------------------------------------------------------------7...
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...national economic systems through the growth in international trade, investment and capital flows. It also includes a rapid increase in cross-border social, cultural and technological exchange as part of the phenomenon of globalization. 2 Definitions: Small and Medium Enterprises (SMEs): There is no consensus of SME definition as various countries had different definition depending on the phase of economic development and their prevailing social conditions. In this, various indexes are used by member economies to define the term such as number of employees, invested capital, total amount of assets, sales volume (turnover) and production capability. 3 2. SMEs in Tanzania In the context of Tanzania, micro enterprises are those engaging up to 4 people, in most cases family members or employing capital amounting up to Tshs.5.0 million. The majority of micro enterprises fall under the informal sector. Small enterprises are mostly formalized undertakings engaging between 5 and 49 employees or with capital investment from Tshs.5 million to Tshs.200 million. Medium enterprises employ between 50 and 99 people or use capital investment from Tshs.200 million to Tshs.800 million. This is illustrated in the table below: 4 SMEs in Tanzania, categories Category Micro enterprise: Small enterprise: Medium enterprise: Large enterprise: Employees 1–4 5 – 49 50 – 99 100 + Capital Investment in Machinery (Tshs.) Up to 5 mil. Above 5 mil. to 200...
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...multinationals corporations. Political Risk- Brazil has been a stable democracy for 25 years. Despite some unique risk as corruption, Brazil has been rating overall medium risk for dynamic risks, governance framework, political violence and business and macroeconomic environment. Financial Markets in the country & Sources of Capital for the multinational corporation Brazil is now the eighth-largest economy in the world and will continue to seek a growing international role. The country has also been considered a confident player on the world stage and also seat temporary at the UN Security Council. The Brazilian Bovespa index of the Sao Paulo Stock Exchange has been doing very well with several shares from different sectors which are providing steady growth to the Bovespa index. There are many financial service as the private multi-purpose commercial banks, universal banks, play the leading intermediary role in the country’s financial sector. Public financial institutions are also among the leading intermediaries, promoting rural economic activity and agricultural production through the provision of subsidized loans. Tax Structure & Investment Incentives for which foreign based companies are eligible Brazil’s Tax Laws and system, Brazil's corporate tax rate for 2010 around 34%. The tax consists of a basic tax of 15%. There is also a surtax of 10% for annual income of over BRL 240,000, about $ 110,000. Additional, all corporations are subject to a social contribution...
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... ii INTERNATIONAL BANKING: HISTORICAL SYNTHESIS OF THE BASIC PROBLEMS AND DEVELOPMENTS OF THE MONETARY AND CREDIT SYSTEMS DURING THE 19th AND 20th CENTURIES Thesis Statement: Our historical synthesis focuses on the economic and political aspects of banking, with questions of industrial management and the credit economy taking second place. OUTLINE I CURRENCY AND MONETARY HISTORY IN THE 19th CENTURY 1 From Silver and Bimetal Currency to Gold Standard 2 The Development of the Bank Note into a Legal Tender A Bank Notes and Issuing Banks in England until Mid-19th Century B Peel’s Bank Charter Act C The Banque de France in the 19th Century D Overcoming the Federal System of German Issuing Banks E The United States’ Arduous Journey Towards the Federal System II BANKS AND BANKING FROM THE EARLY PHASE OF INDUSTRIALIZATION TO THE MIDDLE OF THE 19th CENTURY iii 1 Bank Types at the Beginning of the 19th Century A Private Bankers B Public Banks C State Banks 2 The State Loan Business and the Political Role of Private Bankers 3 The Financing of Railway Construction 4 The Financing of Early Industry 5 The International Financing Power of the Rothschilds III...
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...territorial control. [2] Actually, structures of exploitation mean exploit a country by using certain level of strategies. In old imperialism, firstly they enter a country by colonized them, secondly they produced and exported manufactured goods in exchange for raw materials, minerals and other industrial inputs or consumer commodities their colonies. Imperialist dominated all the resources in colonial countries where this is way allowing them to accumulate capital[3] via ‘unequal exchange [4]and unequal development. According to James Petras, there are no differences in new imperialism and old imperialism. But there are some differences, which are in new imperialism, there more focus on development as a form of imperialism. There is still existing of structure exploitation in new imperialism where developing countries are dominated by multinational corporations. In addition, most developing countries where introduced and practice the neo-liberalism system which is also a part of structure exploitation. Neo-liberalism benefited and makes richer the capitalist as much as possible while the developing countries remain underdeveloped. Industrialization is a process of transition from agriculture sector to industry sector where there are consists of two parties, capitalist and workers. The events that led to the adoption of industrialization as a strategy to promote economic growth for post-colonial in East Asia in late 1960’s and Latin America after the Second World War...
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...years of ownership, Advent helped Cetip in its transition from a non-profit mutual organisation, with more than 600 financial institutions as members, into a listed business with a strong growth profile. Following its demutualisation in 2008, the company reinforced its management team, implemented best-practice corporate governance, instilled a culture of innovation and performance improvement and subsequently acquired GRV Solutions, effectively doubling in size. As they wrapped up lunch with a traditional café, the three colleagues wondered whether Advent had sold its stake in Cetip at the right time. Had Advent really unlocked all of the remaining value in the investment? History of Private Equity in Brazil Private equity and venture capital (PE/VC) investment is a recent phenomenon in...
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...Latin America, out of IMF’s control World Economy and Latin America 20 December, 2011 Contents Introduction Past relationship between Latin America and IMF How LAC could get out of IMF’s control Conclusion Introduction Latin America was a volatile region with a history of exceptionally high inflation rates, substantial macroeconomic instability, and a record of unsuccessful monetary and fiscal stabilizations. However, during the past decade, Latin America’s economy has strengthened their body and benefited from high exports, strong economic growth in its trading partners and good global financial conditions and domestic policies. All of this is related with international financial institutions and one of IFIs, International Monetary Fund had affected in currency perspective in the region. In this paper, I will search the changing relationship between Latin America and one of IFIs, IMF whose role is so involved with Latin America’s economy. The first session will explain the relevance between the region and IMF and in the following part, there will be the reasons that Latin America could escape from IMF’s control. Past relationship between Latin America and IMF The IMF was set up to assist countries that had temporary current account deficits and lacked a sufficient quantity of official reserve assets to support a fixed exchange rate. However, the slow motion collapse of the fixed exchange rate system in the 1970s created an odd situation for the IMF. At about the...
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