The economic crisis that hit Indonesia has brought down the banking performance at zero point. The peak of the crisis is the revocation of business licenses of 16 banks insolvent category (Bank Indonesia, 1998). The next process is the establishment of IBRA as one item in a series of Letter of Intent (LOI) between the Government of Indonesia to the IMF, with the first LOI was signed on 1 November 1997 (Hermana, 2007). The next IMF loan agreed to provide standby (stand-by credit) amounting to U.S. $ 10 billion. Other assistance also came from the World Bank and ADB, each with U.S. $ 4.5 billion and U.S. $ 3.5 billion (Bank Indonesia, 1998). This is done to save the banking industries in Indonesia. This condition is mainly associated with the loss of public confidence in the national banking system. IBRA formation is considered as the beginning of the process of rehabilitation of the banking industry remained liquidation casualties with 10 banks, four banks recapitalized (Hermana, 2007). In addition, in this period occurred a sharp depreciation in the capital of the bank caused by a fall in asset quality, the banks rush and the negative spread. As a result, the supply of credit falls drastically known the term credit crunch. The same thing also happened with the implementation of the API starting early in 2004. Economic growth in the early period did not give a positive response, even economic growth tends to slow and only moved up after the fourth quarter. This condition describes the recovery process marked by the banking implementation of the precautionary principle and the closure of the banking consolidation of two banks in April 2004 and self-Liquidation of the bank (ING Bank) and the merger of three banks (Bank Pikko, Danpac Bank, Bank CIC to Century Bank ) (Bank Indonesia, 2004). Economic conditions that tend to not experience these movements, due to the implementation of one program in the API is the first pillar that contains the strengthening of national banking structures. The program aims to strengthen the bank's capital both conventional and Islamic banks in order to increase the bank's ability to manage business and risks, developing information technology, and improve its business scale in order to support capacity building of banking credit growth. As a result the bank focused on the addition of new capital and mergers with other banks to achieve the minimum capital requirement set BI.
In order to examine the impact of Islamic banking it is important to understand the historical origins of the banking system in predominantly Muslim countries and the evolving divergences from conventional banks. The modern conventional banking system in Islamic countries is a product of colonizers using the support of financial institutions for mining, agriculture, and manufacturing. The initial banks were predominantly used for the funds of foreigners and as a means to increase foreign-owned industries that spread through imperial rule. While these institutions were used to finance the expansion of the public sector in the Middle East and North Africa, huge portions of the population made up of devout Muslims were left out of the banking system altogether due to voluntary self-exclusion caused predominantly by their religious beliefs (Mohielden et. al 2011). A lack of the fulfillment of their banking needs has led to inefficient use of savings and a less powerful money multiplier, contributing to an overall liquidity problem.
Financing of agriculture, which had hitherto remained neglected by the commercial banking system in the country, has now become an accepted field of financing activity with the nationalization of major commercial banks in the country. With the adoption of new agricultural strategy and the growing momentum of ‗Green Revolution‘, the financial requirements of the farmers have become all the more urgent. Now, therefore, the crucial role of nationalized commercial banks in providing adequate credits facilities to the farmers has been widely recognised. Direct finance of agriculture, which was almost a forbidden thing in the years prior to the nationalization, has picked up fast in the past few years. The outstanding advances to the agriculture sector by the banks, which were barely Rs. 40 crore in June 1969, have increased to over Rs 5,29,659 crore by the end of year 2013-14.
banking may play important role in e-democracy. The author mentioned 2 case studies on the implementation of e-banking in digital democracy. One was farmer service and different was e-seva. whereas applying e- banking in e-democracy, services become safer, efficient, clear and quick. It becomes a win- win state of affairs for all, for banks its low price, for presidency its higher service, for business its quick and secure, and for voters its clear and economical. The author evaluated that e-banking might be used for thriving e-banking for on-line bill payment, on-line brokerage, on-line account management, anyplace banking, etc. The author terminated that e-banking services give one stop service and informational unit that gives nice advantages to banks, customers, employers and government.
Marketing is the process of introducing and promoting the product or service to the market and encourages sales from the buying public. The study examines the fundamental role of marketing in the Nigerian Banking Industry. Nigerian banking sector has been characterized by an unethical marketing practices which have resulted to poor handling of customers of certain banks. The aim of the study is to ascertain the extent of marketing practices in Nigerian banks and the role marketing plays in bank’s performance. The study was designed around a survey research. Data collected were analyzed in tables and tested the research hypotheses with the analysis of variance (ANOVA) statistical techniques. Findings revealed a direct positive relationship between marketing and bank performance. It then concludes that Nigerian banks engage in marketing to a considerable extent and marketing plays a significant role in the banking sector. Hence, recommend that bank’s should increase their marketing efforts to enable them perform optimally and out perform competition.
Foreign exchange market is another area where international commercial banks play vital role. Foreign exchange market serves two main functions, convert the currency of one country into the currency of another and provide some insurance against foreign exchange risk. Multinational corporations constantly need various currencies for their operations and to hedge against foreign exchange risk. International banks provide foreign exchange services to their commercial business clients to complete their business transactions. These banks act as a broker between commercial customer and foreign exchanges around the world. International businesses receive payments in foreign currencies for their export, the income it receives from foreign investments and income received from licensing agreements with foreign firms. International business use foreign exchange market to pay foreign firms for its products and services and when it makes direct investment in foreign country. International banks play major roles in these transactions.
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After the introduction economic reform in the form Liberalization, Privatization and globalization, there is increase in growth of service sector in India. There is rapid increase in service sectors like banking, insurance, transportation, communication etc. But before 1991 the number of accounts holders in the various banks in both rural and commercial banks were very few. The use of manual banking system made it uneasy to serve customers in a more diverse ways as urgent demand for information coupled with reconciliation of financial statements of the various institutional customers were very hard to come by. But with the introduction of Computerized Accounting System, the more tedious banking functions through the use of manual banking system have been reduced. The use of computerized Accounting System in the various banks is drastically changing the way banking activities are being organized. Electronic commerce is now regarded as the panacea for the new commercial revolution that is taken place in the advance world which in one way or the other lacking in India and by offering reasonable banking products and services to customers, Indian banks had to adopt computerized Accounting System. The recent improvement in the country’s infrastructure has made banking sector to adopt this technology in order to improve their services for their customers.
The involvement of accountancy firms in anti-social practices in Nigeria has not been exposed or sanctioned by their professional bodies but by regulators (in the case of the recent banking crisis) and by whistleblowers (in the case of Afribank and Cadbury Nigeria Plc). Professionals have been implicated in unethical practices, but their role in such practices has rarely been investigated. Although section 368 of the Companies and Allied Matters Act 1990 creates civil liability for negligent auditors, liability is yet to be imposed. It has been argued that the compromising stance of the self- regulatory professional bodies in sanctioning their erring members has been further facilitated by the non-interference attitude which has usually been adopted by the Nigerian government (Bakre, 2007). The Nigerian accounting professional bodies should ensure that they enforce and maintain their acclaimed duty to see that their members exercise due diligence and act in a morally and ethically upright manner and in the best interests of their clients and of the Nigerian public as a whole.
Community preference against Islamic bank shows the high interests of the community against the Islamic bank, but it can be declined because of the limitations of the network (MN Rianto, 2012: 123). Banking services will be effective if it is supported by an extensive IT connection. CE frequently employs IT technology as a means to attract, develop, and retain customers. For example, the application of IT technology allows for IT-based interactivity that makes it possible for customers to have access to product and service information much faster than earlier (Adam and Michael, 2005). While direct mail and phone are highly effective in building an engaging relationship, the use of email and SMS texting can significantly improve results because of mobile communication consumption patterns. To communicate with the mobile customer, email and SMS texting should be direct and to the point. The customer does not want to know everything about the accoXQW WKH\ ZDQW WR NQRZ ZKDW¶V LQ LW IRU WKHP DQG KRZ GR WKH\ UHVSRQG :KLOH OLQNV VKRXOG EH XVHG WR SURYLGH DGGLWLRQDO SURGXFW LQIRUPDWLRQ LI QHHGHG D µVLQJOH FOLFN¶ RSWLRQ VKRXOG be available to say Yes. Social interaction in virtual words where users communicate and interact in real time can be used to connect with customers, provide information and experiences, and obtain customer input (Tikkanen, et al., 2009).
Agriculture is a gigantic sector of the Indian economy as its share to gross domestic product (GDP) is almost 17 per cent. Over 60 per cent of the population adopts agriculture as main occupation. In spite of a large of Indian economy, agriculture is lagging behind many aspects and characterised by poor connectivity and disintegration of market, unreliable and delayed information to the farmers, small land holdings, non adoption or less adoption of improved technology and so on. It has become indispensable to explore various ways to keep our farmers updated about modern technologies and relevant information. The development and timely dissemination of better personalized technologies specific to different agro-climatic conditions, size of land holding, soil type, type of crops and related pests/diseases is the real issue to brazen out ahead for the agricultural scientists/experts. The timely availability of right information and its proper utilisation is indispensable for agriculture. ICT based initiatives can be taken for propagation of information, transfer of technology, procurement of inputs and selling of outputs in a way so that farmers can be benefitted. The timely information and practical solutions of the agricultural problems helps the farmers to adopt good agricultural practices, make better choices of inputs and to plan the cultivation properly.
In the 1990s, the banking sector in India saw greater emphasis being placed on technology and innovation. Banks began to use technology to provide better quality of services at greater speed. The Internet Banking is becoming one of the fastest growing technologies that is playing a significant role in the daily lives of human beings. Internet Banking and Mobile Banking made it convenient for customers to do their banking from geographically diverse places. Banks also sharpened their focus on rural markets and introduced a variety of services geared to the special needs of their rural customers. The Internet is slowly gaining popularity in India. The Internet Banking is changing the banking industry and is having the major effects on banking relationships. Internet Banking involves delivery of banking products and services. At present many of the banks around the world have web presence in form of ATMs, Internet Banking, Support services etc. In the world of banking, the development in information technology has an enormous effect on development of more flexible payment methods and more- user friendly banking services. Electronic Banking services are new and the development and diffusion of these technologies by financial institutions is expected to result in more efficient banking system.
Krishi Community Radio is established on May 17 th , 2007 by the University of Agricultural Sciences, Dharwad in Karnataka. It covers in 15-20 km area in and around the University. The CR is completely dedicated to the service of agriculture and the rural community, keeping in mind the largest economic growth sector and broad in the rural community. The community radio station is engaged in active involvement of farmers in production of programmes. It creates a platform for the farmers and also looks at preserving local culture of the farmers. A study was conducted by MadhuPattanashetti and D.A Nithya Shree in 2009-10 to analyse the impact of the Krishi Community radio on its listeners. According to them the CR ―gives useful information on agriculture as the major reason‖ followed by ―information on pesticides, helps to adopt new agricultural technologies, information about new varieties and increases knowledge‖ (Madhu, Pattanashetti, D.A. Nithya, 2012). The community radio also helping the listeners in gaining knowledge about ―improvised varieties of seeds, seed treatment, seed selection, storage, better methods of agricultural practices, control of pesticides and
farming community in and around 25 km from KrishiVigyan Kendra, Baramati. It provides a platform for the farmers, farm women to share their experiences, skills, art, problems and needs to their other farmers and farm communities. Farmers, Self Help Groups (SHG), students, doctors, local artists, agriculture businesspersons, teachers, experts in agriculture participate in programme production. The programme producers of the stations goes around the farmers in villages in collecting information about their problems of livelihood, their farming techniques and experiences and record them and broadcasted on the CRS. The CRS also records local folk songs from the members of the community and they were played in the CRS. The CRS airs information by agriculture scientists and experts to help the farmers to improve their farming. The CR also broadcast programmes on human health, market prices and weather forecasts. A study of SharadaKrishiVahini revealed that ―a majority of the farmers (67%) preferred agricultural success story programme followed by live interactive program (62%) and phone in programme (57.50%). A majority of the farmers were interested in programme like rainfall prediction, agricultural news, disease and
we used to see to other countries for self to meet our food requirements. With the help of HaritKranti which was the slogan of our beloved Prime Minister Late LalBahadurShastriJi, we are in the position of self-sufficiency and some of the surplus products of agriculture, horticulture, livestock, floriculture etc. are getting exported. With the outcome of Green Revolution, India not only became self- sufficient in meeting the requirement of food grains but also achieved the economic growth all round. As is in the case of developing markets, provision of agricultural credit and involvement of the respected governmental agencies needed, India is in the right earnest in this direction and use of Kisan Credit Cards, Rupya Cards are examples. Investment in marketing by public sectors, private sectors or any other form including the cooperatives in various forms like the marketing, transporting, distribution including import or export of produces, processing of products, supply chain method of marketing etc. ultimately improves the financial position of farmers, agriculturalists and the country and countrymen. Subsidies on fertilizers, irrigation, agricultural loans is a progressive approach and this leads to further research including increase in produces and growth
Contrary to the conventional agriculture, conservation agriculture is becoming increasingly popular today because of it’s positive effect on soil, plant and animal life, and also on reduction of climate impacts. Conservation agriculture is defined as the concept of agricultural production with the preservation of resources that are striving to achieve acceptable profit together with a high and sustainable level of production, while at the same time preserving the environment. Conservation agriculture is based on three main postulates which are the minimal soil disturbance, permanent soil cover and crop rotation. Today conservation agriculture is becoming increasingly used in the world and many countries accept this model of land management, both for economic reasons and for the conservation of the environment. Overall, conservation agriculture as an alternative paradigm for sustainable intensification of production offers a number of benefits to producers, society and the environment that can not be achieved by conventional agricultural production and is necessary to meet the goal of sustainable development.
While it has long been recognized that economic development is inextricably linked to agriculture, there has been little consensus about its precise role. The dual economy models inspired by Lewis (1954) and popular in development economics in the 1960s and the 1970s typically featured agriculture as a backward, subsistence sector. In this view, resources were to be drawn from the unproductive agricultural sector to encourage development of the productive industrial sector. Much of the early development economics literature was thus interpreted as supporting an industrialization strategy, leading to an urban bias in development planning (Lipton, 1977), and fiscal and trade systems that systematically over-taxed agriculture (Krueger et al., 1988). A more positive view on the role of agriculture in development (especially during the early stages) emerged later, following the seminal contributions by Johnston and Mellor (1961) and Schultz (1964). They emphasized the critical contributions of the agricultural sector to growth in the non-agricultural sectors, implying that investments and policy reforms in agriculture might actually yield faster overall economic growth, even though agriculture itself might grow at a slower pace than non-agriculture. Since then several authors have found that the multiplier effects from agriculture to non-agriculture are indeed substantial, especially in Asia, but also in Sub-Saharan Africa (SSA) (Haggblade, Hammer and Hazell, 1991; Delgado et al., 1998). The experience of the Green Revolution in Asia, whereby traditional agriculture was rapidly transformed into a fast growing modern sector through the adoption of science based technology, provided further confidence in the proposition of agriculture as an engine of growth.
comprehensive approach that pursues multiple pathways out of poverty - shifting to highvalue agriculture, decentralizing nonfarm economic activity to rural areas, and providing assistance to help move people out of agriculture," (p. 2). Currently, the unfavourable farm and age structure in Romanian agriculture prevents innovation and farm enlargements for most households. Lacking alternative income sources in rural areas and pensions that do not cover daily living expenditures prevent people from exiting agriculture. Nevertheless, NRDP (2008) expects that important structural changes will occur in the rural economy, given that "Major development opportunities can arise from restructuring the agriculture and from revitalizing the rural economy … The restructuring of agriculture will have a tremendous impact on the wider rural economy, as farming continues to be the most important activity in rural areas, and an essential source of income for rural households," (p. 10). Despite this optimistic statement, it should be kept in mind that as long as the majority of farms are social safety nets, they cannot be the drivers for development. Thus, the question remains: Who could be?
Abstract. Islamic banking in Indonesia presents in a dual banking system. Islamic banking is expected to contribute more in the process of economic development and improving people’s welfare. The main objective of this study is to analyze the role of financing Islamic banking and conventional banking credit to the improvement of people’s welfare as measured by reductions in poverty. The study was conducted using the explanatory method, applying the panel regression estimation techniques simultaneously with the Two Stage Least Square method (TSLS) data from the period of 1992-2012. Results of the study reveals that the increase of financing Islamic banking and conventional banking credit assign roles to poverty reduction in Indonesia. The role of Islamic banking financing is lower than conventional bank credit role in reducing poverty. In addition to improve financing and credit, changes should be applied in the value of the instruments of monetary policy, economic growth, unequal distribution of income and the depreciation of the local currency that contribute towards poverty conditions.