An example are the the Lumbung Pitih Nagari (LPN) among the Minangkabau in West Sumatra, Indonesia. They have evolved from two informal institutional sources: the communal rice store, lumbung pitih, and the rotating savings group, julo-julo. As money was substituted for rice, about 500 LPN turned into semiformal financialinstitutions owned by their members and registered with the provincial government. With the creation of a new provincial law during the 1970s, which does not come under the national banking law, legal upgrading followed institutional evolution. The provincial government gave the LPN an equity injection, which approximately half of them used for the purpose of growing in financial strength and outreach. In 1988, with the passing of a village banking law, LPN entered into yet another phase of legal evolution, meaning that they could now register as formal village banks, Bank Perkreditan Rakyat (Seibel 1989:24 -31). An increasing number of LPN has taken advantage of this option in recent years, with substantial upscaling effects on their operations.
DFI is a member of the Conference of State Bank Supervisors (CSBS) whose mission is to assure the ability of each state financial services regulator to provide safe, sound and well-regulated financialinstitutions to meet the unique financial needs of local economies and citizens. Since the 1980s, CSBS has sponsored a comprehensive state banking department performance Accreditation Program to enhance the professionalism of banking departments and their personnel. In 2009, CSBS partnered with the American Association of Mortgage Regulators (AAMR) to extend accreditation to state regulators that oversee the nondepository mortgage market. Congress recognized the value of this accreditation in federal law by stating in 12 CFR 1008.113 that “A supervisory authority that is accredited under the Conference of State Bank Supervisors-American Association of Residential Mortgage Regulators Mortgage Accreditation Program will be presumed by the Bureau (Consumer Financial Protection Bureau) to be compliant” with the standards it set for effective licensing, supervision and enforcement of the non-depository mortgage market. If the state does not continue to meet CSBS Accreditation standards, the Bureau could take over as the primary regulator of our licensees.
very successful institutions, with none having defaulted since their creation over a century ago. They take 57% of all deposits, although traditional banks make more loans than they do. In recent years this sector has undergone an intense concentration process. Starting in 1980 there have been 34 mergers. Some other mergers are still under discussion. The largest institutions are Caja Madrid and La Caixa. The total number of Savings Banks is 47. There have been many empirical studies on the efficiency of Spanish financialinstitutions. Examples are Lozano-Vivas (1997 and 1998), Dietsch and Lozano-Vivas (2000), Lovell and Pastor (1997), Pastor (1999), and Pastor et al (1997).
In Anglo-Saxon financial systems like the U.S. and U.K., it is usually argued that the market for corporate control solves agency problems between owners and managers. The threat of takeover and the subsequent firing of incumbent management ensure that managers work hard and pursue the interests of shareholders. In this version of the solution to the agency problem financialinstitutions have little role to play. However, until quite recently there was not a market for corporate control in many countries. For example, in Japan there have been no hostile takeovers in the last few decades. Franks and Mayer (1993) identify a total of three hostile takeovers in Germany between the mid 1940’s and the early 1990’s. The standard theory of the market for corporate control cannot be used in these countries. In order to explain how the agency problem is solved, the role of banks was stressed. Building on Diamond’s (1984) theory of delegated monitoring, it was argued that banks in these countries had an incentive to monitor the actions of firms and ensure that they operated efficiently. In Japan this was known as the Main Bank system and in Germany as the Hausbank system. Empirical studies suggested these systems were important in solving the agency problem in times of financial distress but were less important when a firm was doing well.
The rule of thumb for any business decision is, the higher the risk, the higher the return is and vice versa. Business risk is defined as risk arises out of uncertainty of future events. If these events are undesirable or unfavorable for business, damages and losses may happen. Risk arises because it is impossible to forecast risk in advance whether and to what extent a loss will occur. The importance elements in risk-taking are the hope of success and the fear of failure. That is why it is said that risk is a no-win game. For financialinstitutions, whether it is conventional bank or Islamic bank, making a right decision to finance is often a difficult task to do and crucial as well. A through and strict risk appraisal of the business must be performed and if they are uncomfortable in taking a certain business risk, normally they will then insist on certain terms and conditions with protection in the form of security and guarantees to overcome the risk identified. The objectives of this research is to understand the various types of business risks attached to different businesses as well as to acknowledge that business risk can be mitigated as well through various methods.
Hoffman in his study as quoted by Akelelo (2014), indicated that some of challenges faced in curbing fraud in financialinstitutions include weak internal controls, employee collusion, overriding of controls, and lack of segregation of duties. These can often be aggravated by corrupt political systems and weaknesses in the regulatory and institutional frameworks put in place. In some cases, politicians may meddle in the operations of financialinstitutions, inadequate laws to prosecute fraud and weak institutions that are required to deal with fraud.
Abstract: Market Economy is unthinkable without functioning of financial sector. Market is no more chaotic, nor unorganized, nor local. In this sense two processes are the most important: globalization and deregulation. Directing financialinstitutions on market competition , marketing has taken over one of the leading parts of forming their business policy. Financialinstitutions have changed their attitudes towards marketing. From the previous attitude that marketing is not for financialinstitutions, they have realized that this sector can not do without marketing.
The HP StorageWorks division offers a complete portfolio of disk array systems ranging from a selection of SAN devices featuring the very latest in efficient consolidation, functionality, and technology at very affordable prices to the leading high performance, high capacity, and high availability “virtual array” storage solutions designed for financialinstitutions that simply cannot afford any downtime or tolerate any data loss.
Based on the TOC TP approach described in Section 3.3, CRT and FRT techniques and methods were used to identify and map issues from the operations level to the corporate level of the financialinstitutions (see Appendix E). During this process, the CRT and FRT maps were intended to be modified and updated on the basis of the industry participant recommendations, academic literature alignment and industry reports (e.g., Australian Payments Network 2019; Australian Banking Association 2019; Commonwealth of Australia AUSTRAC 2019). In short, the CRT and FRT maps represent a diagrammatic depiction of the summary or end-point of aggregated information elicited throughout the interview inquiry with the participants. This process is illustrated in Figure 3.6 and compromises several stages. The conceptual model (see Figure 2.1) derived from the literature informed a guiding synthesis of what was known about financial supply chain risk factors that was conveyed by the researcher to the participants with the objectives of both minimising the gaps in theory specific to the literature that the participant data might reveal, and to provide prompts and a shared terminology about the risks discussed. For example, when a participant identified an issue, the researcher would check whether this aligned with descriptions from the literature and identify a shared terminology.
As noted in our previous list of Fed functions, one of the roles of the Federal Reserve is to serve as the lender of last resort to financialinstitutions in times of financial emer- gencies. The Fed performed this vital function well fol- lowing the 9/11 terrorist attacks. The financial crisis of 2007–2008 presented another, broader-based financial emergency. Under Fed Chair Ben Bernanke, the Fed de- signed and implemented several highly creative new lender-of-last-resort facilities to pump liquidity into the financial system. These facilities, procedures, and capabili- ties were in addition to both the TARP efforts by the U.S. Treasury and the Fed’s use of standard tools of monetary policy (the subject of Chapter 33) designed to reduce in- terest rates. All the new Fed facilities had the single pur- pose and desired outcome of keeping credit flowing. Total Fed assets rose from $885 billion in February 2008 to $1,903 billion in March 2009. This increase re- flected a huge rise in the amount of securities (U.S. securi- ties, mortgage-backed securities, and others) owned by the Fed. In undertaking its lender of last resort functions, the Fed bought these securities from financialinstitutions. The purpose was to increase liquidity in the financial system by exchanging illiquid bonds (that the firms could not easily sell during the crisis) for cash, the most liquid of all assets. Many economists believe that TARP and the Fed’s ac- tions helped avert a second Great Depression. The follow- ing list of new Fed credit facilities underscores the extraordinary extent of the Fed’s lender-of-last-resort re- sponse to the crisis.
The federal Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises the federally chartered banks, known as “national” banks. The Federal Reserve Board (FRB) and the Federal Deposit Insurance Corporation (FDIC) also participate in the regulation of national banks as well as state-chartered banks. Membership in the Federal Reserve System is required for national banks and optional for state banks. Under the 1991 Federal Deposit Insurance Corporation Improvement Act, state banks must apply to the FDIC for deposit insurance. Finally, the Division of FinancialInstitutions (commonly referred to as the FinancialInstitutions Division [FID]) of Nevada’s Department of Business and Industry charters and regulates State banks under the provisions of Title 55 (“Banks and Related Organizations”) of Nevada Revised Statutes (NRS).
The general purpose of financial reporting is to provide financial information about reporting entities that are useful to be presented to potential equity investors, creditors, and other creditors in making decisions about providing resources to the entity. Investors will make better investment decisions if they get high-quality financial information currently available from companies operating in the same industry or business. (Kieso et al, 2012: 37). Financial statement analysis is a very important tool to obtain information relating to the company's financial condition and the results achieved in connection with the selection of the company's strategy. By analyzing the company's financial statements, the company leader can find out about the condition and financial development of the company and the results achieved. Financial difficulties of a company can be reflected in the performance indicators, namely if the company experiences short-term financial difficulties (liquidity) that are not immediately addressed will result in long-term financial difficulties (solvency) so that it can lead to bankruptcy of a company (Suharman, 2007) This was also experienced by cooperative financialinstitutions, where many cooperatives were inactive and eventually went bankrupt, so the government would close the cooperative. The Minister of Cooperatives and SMEs Puspayoga said that the cooperative report that was not active needed to be done in the framework of the total cooperative reform program that was being intensified by the government. "The campaign to dissolve the inactive cooperative will continue to be carried out consistently to lead a quality Indonesian cooperative," Based on data from the Ministry of Small and Medium Enterprises, the number of cooperatives in Indonesia is 209,000 cooperatives. Of these 147,000 active and inactive cooperatives as many as 62,000 cooperatives (Kompas.com: 2017). As many as 6,213 cooperatives have been officially dissolved, which have not carried out any activities at all as a cooperative. (Jurnalibukota.com:2016). The DKI Jakarta Government is one of the cities that participated in developing cooperative financialinstitutions which were shown by providing both financial and technical assistance for the development of cooperatives that were still new and those that had long been operating. The development of the number of cooperatives in DKI Jakarta in the last five years shows an average increase of about 9.7% of the total cooperatives, but still high at the level of cooperatives that are not active due to the decline in cooperative performance, this can be seen in Table 1.
Allen N. Berger is at the Board of Governors of the Federal Reserve System and the Wharton FinancialInstitutions Center, the University of Pennsylvania. Richard J. Herring is at the Wharton FinancialInstitutions Center, the University of Pennsylvania. Giorgio P. Szegö is at the Università de Roma 'La Sapienza.' The opinions expressed do not necessarily reflect those of the Board of Governors or its staff. The authors thank the Wharton FinancialInstitutions Center for sponsoring the conference on which the special issue is based at the Wharton School, March 9-11, 1994. We also thank Sankar Acharya, Franklin Allen, Bob Avery, Mark Carey, Doug Cook, Mark Flannery, Diana Hancock, Dave Jones, Myron Kwast, Jim O'Brien, Steve Pilloff, Tony Santomero, and Greg Udell for helpful comments, Jalal Akhavien and Joe Scalise for excellent research assistance, Alpha Bauer, Terry DiNardo, and Debbie Tiller for invaluable administrative work, and all of the conference participants for making the conference and special issue possible. JEL classification codes: G21, G28, G32, E58, L89.
Abstract: Paper work “Financial analysis of the financialinstitutions sector in Kosovo” treats financial sector in Kosovo. Paper work contains the current position of the economy, economic prospects and macroeconomic projections for the financial sector in Kosovo, future potential and possibilities of financial sector in Kosovo. The main goal of this research is financial analysis of Kosovo financialinstitutions sector - overview of key indicators. This research evaluates the performances of commercial bank’s profitability, which have operated in the market during the period 2006-2012. This research is conducted through financial analysis coefficients: Return on Equity, Return on assets and Cost to Income. Test t-Student is used to analyze the profitability for the period 2006/2007 before the financial crisis and the period 2011/2012 after financial crisis.
In this paper contagious risks and financial crises are endogenized through the interactions among corporations, banks, and the interbank market. We show that the lack of financial discipline in a single-bank-financing economy generates informational problems and thus the malfunction of the interbank market, which constitutes a mechanism of financial contagion and may lead to a financial crisis. In contrast, financial discipline in an economy with diversified financialinstitutions leads to timely information disclosure from firms to banks and improves the informational environment of the interbank market. With symmetric information in the interbank market, bank runs are contained to insolvent banks and financial crises are prevented. Our theory sheds light on the causes and timing of the East Asian crisis; it also has important policy implications for the lender of last resort and banking reform.
Through entrepreneurship one can contribute in the solving the problem of unemployment in the country, since Entrepreneurs generate employment opportunities directly and indirectly. Directly means self-employment which is the best way for independent and honorable business or industrial life. Indirectly means by setting up business units which offer jobs to thousands of people. Entrepreneurship balances the regional development. Government and financial institution encourages the entrepreneurs to establish their business undertakings in backward, rural, hilly and mountain areas. In general it can be said that the gap between the demand for and supply of industrial finance is sought to be filled through term loans by development of financial institution. Over a period of time, there has been a steady growth in the number of industrial units assisted, and in the amount of loan sanctioned and distributed by financialinstitutions. It could be concluded that the financial institution is the backbone in growth of an industry, whether it is agricultural, textile or any other kind of industry different financial institution have different kind of role and different purpose of existence and have number of different way that help the industries in their growth and prospects.
Entrepreneurship is the most important and indispensable part of the social and economical growth of any country - developed, developing or underdeveloped. The development of entrepreneur has been recognized widely as the key to economic growth, development and human welfare. In India, the movements of entrepreneurship promotion and development in the past few decades have gone a long way particularly in the developing countries. Governments, various industrial promotion and support institutions are making considerable efforts to facilitate the process of development of new entrepreneurs for setting up enterprises. Peter Drucker, father of modern management, said that, in all the countries in the world, the entrepreneurs are between 12% to 15%. This is very low percentage. It is absolutely necessary to increase this ratio for economic growth. This paper presents the role of financialinstitutions in India in developing the entrepreneurship.
The financial crisis of 2008-09 provides an ideal setting to test the role of institutional investors in enabling firm managers to adjust their payout policies because of its plausi- bly exogenous nature. The crisis developed as a result of large losses suffered by banks and financial firms on their portfolio of subprime mortgage securities. The financial crisis escalated into a full blown credit crisis after the collapse of Lehmann Brothers in Septem- ber, 2008. Ivashina and Scharfstein (2009) documents a severe contraction in new lending to large borrowers during the height of the crisis (4th quarter of 2008). Credit markets froze as financialinstitutions refused to lend to each other and firms found it increasingly difficult, and at times, even impossible, to access capital markets (Campello, Graham and Survey (2010)). Thus, from the perspective of non-financial firms, the economic reces- sion of 2008 can be seen as an exogenous shock to the ability of firms to borrow funds for investment purposes. There is no doubt that the scale of the economic crisis lead to a severe deterioration in the investment opportunities for firms. However, by focusing on the early period of the crisis, I hope to exploit the crisis as a quasi-natural experiment, whereby firms suffered a negative shock to the supply of external capital. This allows me to identify the role played by institutional investors in the ability of firms to adjust their payouts in response to unanticipated, adverse circumstances.
(c) The rationale for inclusion of other revenues as part of FISIM calculation can be looked at from another perspective. Once the funds have been mobilized by the financialinstitutions (regardless of the sources) then they decide the areas where they want to channel the collected funds in order to maximize their returns, which inevitably result in diversified portfolios we see in the balance sheets of today’s financialinstitutions. What is most important here to the national accountant is to recognize the fact that this behaviour leads to an improvement in both efficiency and competitiveness of the financialinstitutions as the potential for future lending at competitive rates is increased with the higher earnings (compared to a situation where financialinstitutions are only involved with deposits and lending). Consequently, these gains in efficiency and competitiveness will be translated into more competitive interest rates and other charges on subsequent lending by financialinstitutions to different clients. 3 This line of reasoning provides further support for inclusion of other revenues in the calculation of FISIM.
Essays on Financial Institutions~ Inflation and Inequality Jakob H0rder Thesis Submitted for the Degree of PhD in Economics London School of Economics University of London 1997 1 To my parents, Kirste[.]