Essays on Depositors

Community bank is an independent, small and locally-owned commercial bank, which operates and obtains its funds solely from the community, where it is based. Community banks focus on providing traditional banking, derive deposits locally and mostly make loans to local businesses. It is widely known that today community banks provide most of the loans to our nation's small businesses and are an important financial resource to small cities. Because of that and because of the fact that they have knowledge of their local community and their customers, they are called “relationship” banks. They base their credit and loan decisions ...

The Savings and Loan Crisis, or commonly known as S&L, is termed as one of the largest financial crisis in the United States history. The crisis began in the late 1970s, and its impacts on the economy were felt in the 1980s and ended in the early 1990s. Various sources have indicated the causes of the S&L crises. Some of the documented reasons include high and volatile interest rates during the period, the phase-out and its elimination, negative regional economic conditions, and federal and state deregulation of depository institutions. Other reasons include deregulation of the thrift industry, declining regulatory ...

The Savings and Loan Crisis, or commonly known as S&L, is termed as one of the largest financial crisis in the United States history. The crisis began in the late 1970s, and it impacts on the economy was felt in the 1980s and ended in the early 1990s. Various sources have indicated the causes of the S&L crises. Some of the documented reasons include high and volatile interest rates during the period, the phase-out and its elimination, negative regional economic conditions, and federal and state deregulation of depository institutions. Other reasons include deregulation of the thrift industry, declining regulatory ...

Analysis of a Panic of 1907

The world has a witnessed some global financial crisis. The most notable one is the great depression that had severe impacts on the economy of the world. Developing nations were adversely affected by the crisis that hit many free markets. Nevertheless, the 20th century was marked by a panic, which ensued on the Wall Street. The aftermath is that American economy and Europe was not spared either as well as the rest of the world. The main aim of this exposition is to analyze the book The Panic of 1907; lessons learned from the Market’s Perfect Storm by ...

Hoarding among Americans Born during the Great Depression: Understanding the Socio-Economic Conditions of a Forlorn Era in Relation to a Peculiar Habit

Introduction

The capitalist economic setup of the United States (US) is not purely a success story. While markets in the US appear robust and active in contemporary times, it does not mean that it has not experienced any form of fluctuations. In fact, various maladies have affected the US economy for one too many times. In fact, the most recent economic crisis that has hit the US – the global financial crisis of 2008, has left the nation reeling in the pains ...

Question 1 (Appendix A):

Government interventions in the financial markets have been and will always be an issue of ethical dilemma (Stiglitz, et.al, 1993). Therefore, it may be worthy to understand beforehand, what an ethical dilemma is. In YourDictionary, ethical dilemma is defined as “situation in which there is a choice to be made between two options, neither of which resolves the situation in an ethically acceptable fashion. In such cases, societal and personal ethical guidelines can provide no satisfactory outcome for the chooser. Ethical dilemmas assume that the chooser will abide by societal norms, such as codes of law or religious teachings, in ...

In simple words, the tragedy of commons could be described as individuals working for self-interest and ignoring the needs of society. For example, there is a meadow that is utilized by the farmers of the countryside. The meadow can serve 20 cows in any season. If a farmer increases his number of cows from 2 to 10, this will put negative effect on other 18 cows as their resources will be over utilized. The farmer being aware of this situation does not think about the well being of all the farmers or cows, but only protects his personal interest. After some ...

Paulo Reglus N. Freire was a renowned Brazilian philosopher and educator whose contributions and ideologies on issues relating to educational instruction laid the foundation for the current instructional concept called critical pedagogy. Freire is known to have clamorously attacked the common routines in classroom where students were often given a passive role storing information during the process of education. This undesirable mode of instruction is called banking education. This paper seeks to analyze Paulo Freire's article titled The “Banking” Concept of Education from a student and well-informed reader’s perspective with a view of appraising Freire's contentions in the article before proceeding to ...

The beginning of Stock market in America.

Trading in the stock exchange markets has a definite origin. Ideally, the American Stock Exchange represented by the acronym (AMEX). Historically, the trading in the stock market commenced in the 1800s periods. This transition was referred to as the curb exchange. Historically, the origin shows that the stock exchange in the United States was established with the intention to develop a stable economic power. This was the primary disquiet of the United States economic stimulus policy. According to the historical records, this occurred during the times of Alexander Hamilton, the first secretary of the treasury at that time. This executive secretary ...

The Great Depression

Introduction: The Great Depression was the longest ever depression felt by the Western World as it spread from December 1929 and lasted till 1939. Although it originated in the United States, but its ill effects were spread around the globe in the form of low production numbers, increased unemployment rates and high deflation rates. In this paper, we will focus on the factors that lead to the Great Depression and will also look for the real reason that forced it to continue for 10 long years.

Causes of Great Depression:

Stock Market Crash The roots of the Great Depression were laid ...

This film dramatized the American economic collapse of 2008. The collapse, and the subsequent "government bailout", was precipitated by a number of factors. As pointed out in the actual drama of "Too Big to Fail", the combination of unregulated banking practices and lax requirements for consumer credit created an economic meltdown that had worldwide repercussions. During the short period that led up to the so-called TARP (Troubled Asset Relief Program), colossal mortgage bankers were in the practice of underwriting mortgages for both commercial and residential properties, such as houses, condos, and retail space. Mortgage insurance companies, like the behemoth ...

And the Netherlands

Through the centuries Amsterdam has played an important role in Dutch society. Because of its position in the province of North Holland, the city grew to become an important focal point for trade and politics. One of the most turbulent and influential episodes in the history of Amsterdam and of Holland for that matter, is the spread of Calvinism and the political and economic struggle that followed, which finally led to the supremacy of Amsterdam as financial and commercial hub during the 17th century. Protestant ideas took root very early in the Netherlands, after 1960, when religious wars broke ...

Background

During the World War I, United States and European countries economies had forged an intimate and unique relationship and owing to this, the Great Depression spread to these countries. After the World War I, United States emerged as a major financier and creditor of postwar Europe. The national economies of European countries were greatly weakened by World War I and the war debts (McNeese, 2010). In particular Germany and other countries that were defeated were expected to finance war reparations. The United States Economy slowly slumped after the World War I and the American investment credits flow to the European ...

Introduction

Situated between the North Atlantic and Arctic Ocean, Iceland is one of the Nordic countries falling into the European continent. The population of the country is 321,000 and the total area of the country is 40,000 sq. mile. Iceland is the least densely populated country in Europe. The capital city of Iceland is Reykjavik which is also the north most capital city in the world. In 2008 when a global financial meltdown started in US after the bankruptcy of Lehman Brothers, Icelandic economy was hurt badly by the crisis. This resulted in the whole banking sector of Iceland ...

Interest rates are amounts charged by lenders to borrowers as fees on borrowed assets. The interest rate is the price an individual pays for the use of money they have borrowed; it can be thought of as an economic rent. When a person deposits money in a bank, they receive interest as a percentage of the total amount deposited. Similarly, when an individual borrows money, they pay interest to the lender as a percentage of the total money they owe the lender. The percentage of the principal amount paid as a fee over a given period is the interest rate. Interest rates are macroeconomic variables ...

The chapter serves to discuss the importance and contribution of Financial Markets in the Economic Growth of a country. The author discuss as how the financial market serve to marshall the general savings in the economy and channelize them to the most productive avenues of the firms undertaking investment activities. By this, the author puts forward a view in contrary to classical view that an economy dependent on Financial Markets for its growth will need to rely less on the banking system and will thus experience economic growth. Before discussing the pros and cons of Banking system, author cites the example ...

PROBLEMS IN THE REGULATION AND SUPERVISION OF INTERNATIONAL BANKS AND NONBANK FINANCIAL INSTITUTIONS

INTRODUCTION The banking and non-banking financial institutes have witnessed both growth and change in the functioning practices across the globe. Many economies have suffered severe financial crisis due to the global economic recession. It has disrupted the economic activities. The risk management teams and policy makers have focused their attention towards redefining the regulation and supervision practices of international banks and non-bank financial institutions. The objectives of these practices are to ensure stability and growth in the financial practices. This report will focus on highlighting the changes in the regulatory practices which have been implemented on both ...

Conventional versus Islamic

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Fin399-P

Dr. N E Abstract: The current paper relates financial analysis of commercial and Islamic banks in UAE. The aim of this paper is to evaluate financial performance of commercial and Islamic banks in UAE and make appropriate conclusions regarding comparative advantages and disadvantages of the two groups of the banks. The evaluation between commercial and Islamic banks was carried out with the help of financial analysis. Analysis of financial ratios was used as the main technique of financial analysis in this paper. There were four groups of financial ratios analyzed, namely: liquidity ratios, solvency ratios, ...

BUSINESS CASE (OSCHADBANK)

Background on the organization The state savings bank of Ukraine (Oschadbank) boasts as being one of the largest financial institutions in Ukraine, thus having about 6000 branch offices since its establishment in 1991. The company has been able to employ about quarter of all banking personnel in the whole country, which intern has propelled them into becoming one of the key players in the banking services market for both small, medium and even individual businesses. Oschadbank is uniquely the only Ukrainian bank that fully covers monetary funds and other valuables as the state guarantee through the law.

In ...

INTRODUCTION

The Federal Reserve System also known as the Federal Reserve was formed on December 23rd 1913 after the approval of Federal Reserve act (Beckhart, 2). The enactment of the act was accelerated by a series of financial panics, mainly by a severe panic in 1907(Bechart,2).It’s main objective was; to provide economic stability by formulating and implementing monetary policies that will ensure price stability, to facilitate discounting of commercial papers and lastly to regulate the activities of commercial banks (Prochnow,3). However the goal of the Federal Reserve has changed overtime and broadened to accommodate other economic ...

Question 1 - What is a sub-prime mortgage?

The consumer financial protection bureau defines sub prime mortgage as “A subprime mortgage is generally a loan that is meant to be offered to prospective borrowers with impaired credit records.” A subprime mortgage is a kind of mortgage granted to borrowers with impaired or zero credit history. A prime or conventional mortgage is not offered to such borrowers as they have greater risk of defaulting. These loans are also called interest only loans and do not require any principle payments for initial few years, number of which is settled among the borrower and lender The interest charged on such ...

Question 1

The Investment and Savings curve (IS) represents the commodity market equilibrium, with the national savings (S) being determined by national output (Y) - (Private Consumption (C) + Government Expenditure (E). Y is a function of the tax policy, economic expectations and interest rates etc, while E is dependent of government policy (Krugman, 2009).

Figure 1: IS Curve Derivation

The 2007 recession started in the sub-prime mortgage market, due to the expansion of liquidity derived from the bond markets, which was unmatched increases in real assets. The risky loans amounted to $1.3 trillion in 2007, with the subprime market accounting for 18% of total originations. Increased securitization, ...

Q.no.1: The financial crisis that hit the United States first and then the world economy starting in fall 2007 meant that the future prospects of many firms looked gloomy at best for some time. Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate. Show your answer using a graph. Answer: A depression is a severe economic downturn that lasts for several years. It is characterized by falling Gross Domestic Product (GDP) and high unemployment rates. What started as a financial crisis in the ...