Finance Articles

Finance articles section focuses on various concepts of finance like budget, stock market and economics of various products & services. Apart from these articles on global financial institutions, different banking systems and topics of international importance in the field of finance are present.



Does FDI Promote Sustainable Economic Growth? November 21, 2014

Theory of de-capitalization of local economies discernibly warns the host nation against the capital investment by MNC’s as the former will not benefit from those investments. Astonishingly, each developing country still looks out for the investors from abroad promoting the buzzword ‘FDI’. The discussion over the buzzword has risen again in the last decade due to the Uruguay round and some other factors like breaking of USSR, etc. And how can India remain unaffected from the epidemic and hence, there has been an arena of advocacy over this issue in the world: Is it helpful for host nations?

 

Evolution of Basel Norms Impacting Creation of ‘Banks too big to fail’- India Perspective November 17, 2014

Banks are highly regulated profit making financial intermediaries where they accept money fromdepositors and lend money to borrowers at a rate of interest. These companies are highly leveraged and dealing with public money entails sufficient risk. Therefore a strong regulation of Banking system plays an important role in the holding the financial backbone of the economy. The breakdown of the Bretton Woods in 1973 led to casualties. The Franklin National Bank of New York closed down due to huge foreign exchange losses. Bankhaus Herstatt lost its license due to holding foreign exchange exposure three times the capital. These disruptions in the international financial market led to formation of a committee on banking regulation known as Basel Committee on Banking Supervision. The committee sets up minimum standards for supervising the banking business.

 

India Needs To Dig Deeper For the Black Gold to Rise & Shine November 11, 2014

The oil and gas sector is seeking all the attention these days by making the oil ministry work on a weekend (23rd and 24th of August 2014) to finalise the cabinet note which relates to fuel pricing and subsidy sharing. The dark clouds of rise in crude oil prices due to breakout of civilian war in Syria were cleared when recently, crude was trading at US$ 100 which is US$ 12-13 lower than the crude prices on the day budget was declared. Oil Ministry says that every dollar fall in crude prices saves India Rs.6000 Cr. of its import bill.

 

SMEs as a Target as Trends in Industry Change November 09, 2014

The SME sector has been on the growth trajectory in India, especially in the last decade. SMEs have made a significant contribution to the economy and this can be seen from the impact they have made on the total GDP of the country. This is evident from the numbers below-

 

Retrospective Taxation – Is It The Right Way Forward November 06, 2014

What is Retrospective Taxation?

Retrospective means something concerned with or related to the past. Retrospective taxation means taxing old proceedings according to new laws. Using this taxation law, the government can tax any transaction which happened even before the law was passed.

 

Crowd Sourcing in Financial Institutions November 02, 2014

Crowd sourcing is the process of outsourcing the task to a distributed group of people. The succeeding terms like “Crowd funding” is often popular. However the use of Crowd Sourcing in Finance is still approached with much caution. Let us look at a few of Crowd Sourcing innovation techniques used by leading banks.

 

The Real African Dilemma November 01, 2014

Many termed MTN’s move to pay $285Mn in 2001 for a mobile licence sold at the auction by the Nigerian government as an insane move. Though the country had rich reserves of oil reserves but at the same time it had been under military rule for close to half a dozen decades or so. It had a deteriorating infrastructure and the business climate was more often than not unstable.