deposits, loans, payment services, money transfers, insurance, savings, micro-credit etc. to the poor and low income individuals. The importance of micro-finance in the developing economies like India cannot be undermined, where a large size of population is living under poverty and large number of people does not have an access to formal banking facilities. The taskforce on Supportive Policy and
(according to the World Bank reports), micro-finance can play a vital role in providing financial services to the poor and low income individuals. Microfinance is the form of a broad range of financial services such as deposits, loans, payment services, money transfers, insurance, savings, micro-credit etc. to the poor and low income individuals. The importance of micro-finance in the developing economies like India cannot be undermined, where a large size of population is living under poverty and large number
large U.S. trade deficit. Low interest rates made bank lending more profitable, while Trade deficits resulted in large capital inflows to the U.S. Both made funds for borrowing plentiful and relatively inexpensive. The event that precipitated the crisis was the overvaluation of the United States housing market in 2006 and the subsequent crash. Housing prices were driven upwards by easy credit and over speculation on the belief in the false truism that housing prices always go up. Low initial rates
Glass-Steagall Act via the Gramm-Leach-Bliley Act was not a primary reason behind the Global Financial Crisis 2008; however it did however worsen the situation. The Glass Steagall Act The Glass Steagall Act was initially signed into law in 1933 after the famous stock market crash of 1929. Commercial banks had invested heavily in the stock market and after the crash, a hefty part of the population lost their savings. To prevent something similar from happening again, the Glass Steagall Act was passed. The essence
Currency Crisis in Mexico The Mexican financial crisis began from 1994-1995, and it was mainly known as the “Tequila Crisis”. The crisis started after Mexico’s devaluation of the peso in the month of December in 1994. It precipitated as the worst banking crisis in Mexican history, it was the largest depreciation in one year, from being at 5.3 pesos per dollar to increasing to over 10 pesos per dollar. Mexico’s crisis demonstrated that that costs that arise when a country lets its guard down and
CURRENT FINANCIAL CRISIS AND BANKING INDUSTRY Financial crisis is a state in which the value of assets or financial institution drops rapidly and usually comes as a result of assets or institution being over valued and this is shown by the investor’s behavior. This is associated with a run on banks or panic in which the banks shareholders sell off their shares or withdraw their savings with expectation that the value of their shares will fall if they remain in the financial institution. The main
largest conduit for the recruitment of domestic savings. Hence, it becomes the main source of external capital to firms and the key player in the payment system. Apart from their financial intermediation role, banks have been shown the contribution to the general economic stability. This was prevalent during the Asian financial crisis when economy was adversely affected by the then-weak banking sector. Against the backdrop of the Asian financial crisis, many countries have undertaken the massive reform
the consumption of fuel is at a very high rate at present. If people keep wasting and consuming fuel at a high rate the world will get deprived of energy resources in future. Hence it is the need of the hour that people should be made aware of this crisis so that a shortage in energy consumption takes place and so that we are able to save fuel for our future generation. This advertisement became very popular in India, and through this advertisement people got motivated and influenced to such an extent
9.3. Advantages of life insurance 9.3.1. Superior saving plan: Unlike any other savings plan, a life insurance policy affords full protection against risk of death in the event of death of a policy holder, the insurance company makes available the full sum assured to the policy holders near and dear ones in comparison, any other savings plan would amount to the total savings accumulated till date. If the death occurs prematurely such savings can be much lesser than the sum assured. Evidently, the
wholesale banking panic. Finally, it is stated how the early part of this crisis is different from historical episodes in the last two centuries. Difference retail banking and wholesale banking Retail banking comprises financial services provided from a financial institution (e.g. commercial banks) to households. Examples of offered services are mortgages, debit and credit cards, savings, checking accounts and personal loans. On the other hand, wholesale banking consists of banking services between