The importance of banking

THIS MONTH WE FEATURE our first commercial banker on the cover. And it's no small bank, but a mammoth financial institution. With US$14 billion in deposits, Banco Itau is the No. 2 private-sector bank in Brazil.
Also in this issue, we look at the proposed banking reforms now under consideration in Mexico. Again, these are no small considerations, but a transformation that should bring the Mexican banking system in line with the kinds of corporate governance and transparency common to much of the industrialized world,
Finally, we are pleased to run a Final Thoughts by Domingo Cavallo, the economic minister of Argentina. He offers his insight into what it will take to turn around Argentina's beleaguered economy Chief among his proposals is to lower the reserve requirements for banks, and thereby increase lending.
While these three pieces appear, at first glance, to be about different subjects, they all really revolve around one central idea: In order to stimulate economic growth, you need a strong, aggressive banking system. It's not merely about fiscal soundness. Witness Mexico, which has significantly refurbished its banking system since the Tequila crisis of a few years ago. Yet lending in 2000 was less than in 1999, a bad indicator for future development.
What Latin America needs is more liquidity and the ability for its financial institutions to lend more readily to everyone from established businesses to start-up entrepreneurs. Without a radical improvement in lending practices, the region will never attain the kind of growth rates needed to create a critical mass of wealth--enough to engender a real middle class, as well as pull a substantial number of citizens out of poverty.
This seems obvious enough. Then what is keeping a lid on higher velocity lending? It comes down to three things.
First there is the issue of credit worthiness. Until just the last few years, there were few comprehensive databases on consumer and commercial credit. Loans, when offered, were made on the basis of personal relationships, rather than objective criteria. When credit bureaus become omnipresent, then a whole world of lending--including mortgage banking --becomes possible.
Second, there is the issue of collections, which goes hand-in-hand with creditworthiness. In some Latin nations--Venezuela being a great example--it is almost impossible to collect on bad loans. Debtors can tie up claims in courts for years, and even then the penalties are mild. This culture of non-payment freezes the blood of even the most aggressive bankers, and must be fundamentally changed.
Third, Latin America must undergo a further evolution of its corporate mentality. The predominance of family-owned enterprises is slowly giving way to publicly traded corporations, as M&As, IPOs and ADRs continue to transform closed companies into transparent ones. When fiscal accountability becomes the norm, rather than the exception, banks will be far more likely to loosen their purse strings.
The tragedy is how much more rapidly Latin America could have grown with a vibrant banking system. The triumph will come when the real energies of the region are realized--and released--by a thoroughly modern financial network. The good news is that it's not too late.

Offers cardmembers a collection of family tailored travel benifits and ways to save

American Express has launched Destination Family, a program that provides money-saving benefits, and offers specifically tailored to family travelers. Reportedly, it is exclusively available to American Express Cardmembers when booking travel through American Express Travel.
American Express has claimed that the program offers family-focused benefits with renowned hotel, tour, cruise line and car rental partners, such as kids stay and/or eat free, up to 50% off second hotel rooms, on-board cruise credits, free car seats, and a host of other amenities.
Participating partners include: Hyatt Hotels & Resorts, Omni Hotels & Resorts, American Express Vacations, Royal Caribbean International, Norwegian Cruise Line, Regent Seven Seas Cruises, Avis, Budget and Hertz.
Audrey Hendley, vice president of marketing and strategic partnerships, Consumer Travel, American Express, said: "Family vacations are an important tradition that even in these tough economic times people do not want to give up and now they don't have to. We're hoping that this collection of family-friendly benefits and savings will help our Cardmembers afford that family vacation and enjoy it even more with extra amenities."

The Next Step for Microfinance

In an article entitled ‘The Next Step for Microfinance: Taking Deposits’ in a recent issue of Time magazine [1], writer Ms Barbara Kiviat highlights the importance of deposit taking in the field of microfinance or what has been referred to by some development experts as the “forgotten half of rural finance.” Ms Kiviat, a staff writer for Time magazine, reiterates the point that whilst microloans are important, the service that a lot of the poor need ‘more than business loans, is a safe place to save their money’.
The article observes that whilst ‘in most parts of the world anyone can make a loan, including the non-profits that trek into developing countries to reach people traditional financial institutions have ignored’, the provision of savings accounts and other banking products (which are typically heavily regulated) has not been as widespread.
The fact that there is a greater need among the poor for a ‘safe place to keep their money’ rather than a business loan is a view that is supported by many participants in the microfinance sector. Bank Rakyat [2] in Indonesia, for instance, is quoted to have 10 savers for every one borrower. “Low-income people need a variety of financial services,” says Mr Bob Christen, director of the financial services group at the Gates Foundation [3], which has given tens of millions of dollars in grants to savings initiatives. Data from a survey by Bank Rakyat suggests that in 30 percent of cases, micro-borrowers use funds for consumables and household needs, like school fees, home repairs and holiday expenses. The issue, as pointed out in the Time magazine article, is not that poor people don’t have savings, but that they tend to save in ‘hard-to-tap assets, like livestock and jewellery’. To free up cash, the solution is often to pawn possessions-and to pay someone a significant fee in the process.
The article in Time magazine goes on to observe that efforts have been made to make savings a viable product for some MFIs and accounts less costly to maintain. For instance, ‘agent-based banking’ in which financial services are delivered though existing institutions-like pharmacies and newsstands-is one key area of research as is mobile banking. In Kenya, Vodafone’s M-Pesa [4] has seen significant headway with its mobile-phone-based banking system, which includes a way to save. A number of traditional MFIs, many of which have evolved into formal banks, are also assigning renewed importance to gathering deposits. Grameen Bank [5] was quoted as an example and it is stated in the article that the well-established MFI recently relaxed its rules on savings accounts to better accommodate clients’ saving needs.
Ms Kiviat also makes reference to recent efforts by Oxfam America [6] which is stated to have been creating savings groups in villages in Mali, Cambodia, Senegal and El Salvador since 2005. Each group has about 20 members, almost all of whom are women. The members contribute a small amount of money each week, and then, from this pool of savings, on-lend sums to members who need loans. The program is based on a model that is not uncommon n the microfinance world-such groups are called ‘tandas’ in India and ‘tontines’ in West Africa. The program is designed to promote group independence, with Oxfam eventually reducing its involvement over time. Mr Jeffrey Ashe, Oxfam America’s director of community finance was quoted as stating ‘we’re creating autonomous groups and defining sustainability in a whole new way.’ In many ways it’s microfinance back to its roots-small, rural and community-based. Whether this also represents ‘the next step forward’ in microfinance, as stated in the Time magazine article, remains to be seen.
The role of savings in microfinance was also the subject of a recent blog by Mr Nicholas Kristof entitled ‘Putting the Microsavings in Microfinance’ in the New York Times [7]. The blog has attracted a variety of comments. A comment by the publisher of Microcapital and Microcapital.Org, Mr David Satterthwaite, is noteworthy. Mr Satterthwaite reiterates the views of many micro-bankers that the ’local intermediation of funds’ or the use of local savings deposits is an effective funding strategy for microbanks. However, he cautions that articles that attempt to discuss the issue of micro-savings run the risk of presenting a ‘false choice’ between credit and savings. Microbanks cannot offer savings products to clients unless they are also effective at providing microloans. As Mr Satterthwaite stated, ‘you cannot have savings without credit’ as loans are the major source of income for micro-banks where deposits ‘are on the other side of the ledger’ and are essentially an expense. It is important to note that micro-banks must generate the revenue necessary to safely manage deposits

Advantages of e-Banking System

E-BANKING system of Credy Banka has been constructed in order to greatly speed up and simplify business activities. Advantages of e-banking related to classic one are:
lowering to costs of transactions
faster turn-over
safe executions of payment operations
saving time
possibility of executing transactions from the working space
constant overview on the account balance and list of transactions E-Banking system of Credy Banka gives to its users using of following project solutions:
Working through FX Application (off-line application);
Working through WEB Application (on-line application);
Getting statements through e-mail;
Overview of the account balance through voice machine (VOICE).
Overview of the account balance through SMS messages Using of the above mentioned services allows using others.Fees for the payment operations of Credy Banka, for the payment orders sent through e-banking, are 15% lower. The Bank is obliged to provide users with Users' Package which includes installation CD, smart card, reader for smart card and users' manual.All the information of the E-BANKING system of Credy Banka, you can get on the following telephone number: +381 34 337 153.

When people think regarding online

When people think regarding online they consider regarding the viral videos on YouTube and videos on various other video sharing sites. At the same time as viral video can cause ample traffic, it’s not the single way online video can promote one’s business.
An online video on one’s can construct one’s trustworthiness, draw viewers, convey a sales message, and keep clients coming back. Here are some tips for making efficient utilization of online videos on one’s business website.
Bring the viewers something constructive. A lot of people go online for the reason that they’re searching for information. If a person can give it to them, one will harvest the rewards. Customers will consider the person as a specialist in their field, keep in mind one’s business name, and maintain some trust for one’s company—one will provide the impression that one cares regarding his/her customers.
If the person is a contractor then he should do a video series on home repair methods which can vary anything from putting up a ceiling fan to re constructing and redesigning a bathroom. If a person is in retail, do a video series on how to plan an efficient window presentation or floor sales methods.
ECA – stands for Ephedrine, Caffeine and Aspirin. These 3 products can work as a team to synergise and produce a thermal effect of genes which can raise the metabolism of the one who has consumed it. Due to better metabolism rate there is better chances and enhanced rate of fat burning. make the consumer more alert and suppress the consumers’ appetite and also it gives more energy to the consumer.
Now one can just wake up in the morning and feel energized to do all the required work. Now one can wake up in the morning and do all his required work outs.
This is made up of quite rare herbal extracts. They are namely- ma huang herb, caffeine is from kola nut and rare green tea leaves. Aspirin though is extracted from bark of the white willow. Some very popular method like using the citrus aurantium i.e. bitter orange. This works as a very fine appetite suppressant. These suppressant works as a fat burning by enhancing the metabolism.
Now a person can easily say bye to his high urge to eat the high calorie and high fat containing food items. Using diet pills that work can then easily get rid of all his excessive bulging of extra fat layers and can easily achieve his desired or dreamed about look in which he can get leaner and meaner. No need to get stared by stranger for your bad figure body.
Just relax and eat .
Now go ahead and grab your own ECA

Gulf CooperatingCountries(GCC)

Gulf Cooperating Countries (GCC) are in the process of strengthening and expanding financial markets in relation to listing, regulatory, trading and settlement procedures. Along with the opening up of markets to international investment, innovations that should enhance overseas investor interest include the development of meaningful GCC share returns and banking share returns indices. It is clear from almost four years of daily data, that unlagged GCC banking returns and GCC stock market returns are significantly and positively related. Over the longer term, they are also significantly Banking in Nepal is as important as banking in anywhere else in the world. Banking sector is the major institutional system in Nepal which carries out the flow within the economy. The importance of banking in Nepal can also be understood with the emergence of e-banking in the recent years. Banking results in the mobilization of money in the economy and also helps the people to invest and their money and also to give the money to the debtors to precede their
and give financial benefits to the economy.cointegrated. The GCC banking industry is a major component of the GCC share market. Causality tests demonstrate that dual causality exists but stronger causality runs positively from GCC banking returns to GCC stock market returns. GCC banking stock returns are exogenous. The evidence supports the notion that, because of such interdependence it is vital for the economic health of the GCC, that their banking systems remain financially sound. However in order to relieve the mounting pressure on bank debt as oil revenues and repatriated funds dwindle, it is important that the stock markets be opened in due course to outside or non Arab international equity investment

Bankers play very important role in the economic life of the nation.

Bankers play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Today modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the people for the investment purposes. If there would be no banks then a great portion of a capital of the country would remain idle. A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless, so if the finance is not provided to Agricultural sector or industrial sector, it will be destroyed. Loan facility provided by banks works as an incentive to the producer to increase the production. Many difficulties in the international payments have been over come and volume of transactions has been increased. Cheques, drafts bills of exchange and letters of credit are very important instruments of the banks. The banks collect these instruments drawn on banks in other cities or countries and proceeds according to the accounts of the customer's concernsPurpose – The growing importance of use of Internet banking as another service delivery channel by banks to their customers lead to a number of supposition and deductions been made on the value creation of Internet banking and its extent of use. In the light of this, a profound and comprehensive study was conducted with the aim to first, determine the extent of use of Internet banking in Sweden, second, to validate the conjecture and the anecdote inferences that Internet banking provides values to both the bank and its customers.
Design/Methodology/approach - To test the validity of the conjecture and the anecdote inferences made over the years, the author use data collected in two folds. One set was collected from financial institution “the big four banks” and the other set from 60 bank customers out of the 90 questionnaires administered.
Findings - The results provide first, evidence of the high rate of adoption of Internet banking in Sweden, second, the values the banks and its customers have enjoyed since the advent of Internet banking.
Research limitations/implications - Although this exploratory study approach may have validated the proposed model, further research into other cities is required to generalize these findings as this study has the limitation of using only Stockholm and the number of respondents used.
Originality/value - The findings contribute and support several other studies that pointed to the fact that use of Internet banking channel of delivery is on the increase, and its value creation far exceed all other service delivery channels; provide critical implications for managers of financial institutions, Internet service providing firms, government and highlight directions for future research.
Keywords Internet banking, Online banking, Service delivery channels, Technology-based, Enabled-service, Product-service ContinuumAt the end of the twentieth century Asia, and especially China, has rapidly integrated with the world economy. It has been recently confirmed by China's accession to the World Trade Organisation. While this process has been possible due to Chinese fast economic growth, inefficient banking sector appears as a major threat that may shake the stability of the Middle Country in the future. The dissertation focuses on reforms and challenges facing Chinese banking sector, but it also includes other interrelated aspects like privatisation and development of regulatory institutions. This study analyses the experiences of Polish transformation in banking sector and compares it to the situation in China. This paper investigates the present situation in China in banking sector, the reasons behind it and the correlations that are responsible for shaping it. The comparison with Poland is used here to show which solutions applied in other transformation countries may be helpful in China, but also to claim that their successfulness hinges on internal conditions in China. It is argued that to change the situation in Chinese banking sector the government's engagement in the sector has to be limited and the importance need to be put on regulatory arrangements.

Banks play very important role in the economic life of the nation.

Banks play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Today, modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the people for the investment purposes. The savings are encouraged and saving rate increases. If there would be no banks then a great portion of a capital of the country would remain idle. A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless. So if the finance is not provided to Agriculture sector or industrial sector, it will be destroyed. Loan facility provided by banks works as an incentive to the producer to increase the production.Many banks provide very similar services and that is why creating and maintaining relationships to clients is a differentiation strategy to get customer to return. Private advising is one service provided by banks where much interaction occurs and relationship is of great importance. The relationship between private advisers and their clients is therefore suitable for research.
Knowing why a relationship ends is a strategic piece of information to improve the firm’s ability to keep customers in a relationship. The purpose of this paper is to identify the issues that lead to dissolution of a relationship and where they occur in the relationship development process between private advisors and clients.
A pre-study was first made on Swedbank, through interviews, to obtain a holistic view of the situation. More in-depth interviews followed as well as triangulation through a questionnaire.
The thesis presents seven issues that can lead to dissolution of the relationship: better offering from competitors, availability, personal factors, unachievable demands, no need for service, lack of certain services, and requirement not fulfilled. These issues have also been related to where in the relationship development process they occur and ranked in order to know how common it is for them to occur