Essays on Commercial Bank

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 ...

Introduction – History & Background3

Operations in the Emerging Markets4 International Strategy7 Acquisition of Household International7 Expansion of Financial Services in Rural China8 Challenges Affecting HSBCs operations in China11 Conclusion13 References14 Globalization is a process of interaction and integration among the people, companies and governments of different nations. It is a process that is driven by international trade and investment and aided by information technology. This process has effects on the environment, culture, prosperity, human well-being and economic development all across the world. The global strategy covers three important areas of global, international and multinational strategies that are specifically designed to enable a particular ...

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 ...

Recently, China has recorded a remarkable growth in its economy of nearly 10% per year. The bulk of this growth comes from the banking sector characterized by poor asset quality, low capitalization, and massive state intervention. For this reason, the government introduced sweeping changes to the financial sector to boost its stability. These changes included transforming the banking sector from a policy-driven, state-owned, non-performing system to a profit-driven, multi-ownership, competitive system. Although the sector has recorded marked improvements in its operation and efficiency, additional efforts is needed to deal with problems revolving around non-performing loans and shadow banking. The ...