US Financial Crisis and its Impact on Indian Banks - Free Essay Example

Sample details Pages: 4 Words: 1080 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Introduction: The 2008 financial crisis was triggered by a dramatic rise in mortgage delinquencies and foreclosures in the US, which had adverse impact on banks and financial markets around the globe. But, Indian banks unlike other developed countries and emerging markets were not seriously affected. It is not surprising as Indian banks have very few branches overseas. Don’t waste time! Our writers will create an original "US Financial Crisis and its Impact on Indian Banks" essay for you Create order Also, they had virtually no direct exposure to European or US mortgage market, and their exposure to complex derivative instruments whose value fell dramatically during crisis was miniscule. Some Indian Banks which have foreign exposure suffered a bit. Notably, ICICI bank faced significant loss of 375 crores as its London subsidiary had exposure of 57 million euro (375 crores) in Lehman Brothers, which had filed for bankruptcy in US  [1]  . As Indian Economy is now a relatively open economy, there were indirect impacts due to the crisis, especially on GDP growth, exports, exchange rates etc. India which had capital inflows of more than $100 billion during 2007-08, saw a net increase in capital inflows of $10 billion. During this time, it was also difficult for Indian companies to raise money from foreign markets. Exchange rate rose dramatically during this time as compared to previous years hitting liquidity and importers badly at same time. A snapshot of historical exchange r ate is provided below. Exchange Rate INR vs USD Indian Banks Performance: BSE SENSEX vs BSE BANKEX  [2] Historically, Indian banks have been well regulated and capitalized and they have also performed well financially. A comparative performance of BSE sensex and BSE bankex has been shown in the above plot. It clearly shows how Indian banks were hit during 2008 crisis, and how they performed post crisis. Though underperforming during the crisis, Indian banks have done fairly well post crisis. RBI Policies and Liquidity Condition: Repo, Reverse Repo and Mibor rates vs Time  [3] 2008 US financial crisis has shown liquidity risk can rise multifold during adverse conditions. In the Indian Financial System context, we can see during the crisis how dramatically Mibor rates had shoot up. In these conditions, it becomes very difficult for financial institutions to borrow money from market to meet their liquidity requirements. Reserve Bank of India (RBI) has already put in various ways to mitigate the liquidity risk at short term, systematic level and institution level. Some of the methods include limit of borrowing and lending in the inter-bank call money market, limit on inter-bank liabilities, monitoring of credit deposit ratio of each bank. RBI has also given guidelines on Asset Liability Management (ALM) for banks, and SPVs. RBI has so far not allowed some complex instruments, which are operating in foreign markets. Before the crisis many banks were accusing RBI of its tightening monetary policies (a s can be seen from increasing CRR below). But, later they were appraising RBI for taking prudential policies even before the crisis, and during crisis. The Chairman of HDFC, Deepak Parekh quoted He saved us of Dr. Y.V. Reddy (RBI Governor during the crisis). Nobel Laureate Joseph E. Stiglitz commented if America had a central bank chief like Y. V. Reddy, the US economy would not have been in such a mess. CRR Ratio vs Time  [4] Policy Response: Though, RBI had already taken various steps observing global financial system, it took an active role in protecting Indian banks in terms of providing support for liquidity through various mechanisms. Support from government thorough fiscal policies helped Indian banks and economy to recover faster as compared to other economies in the world. Monetary Policy Response: RBI advised banks to report their exposure to Lehman Brothers and related entities, as soon as Lehman Brothers filed for bankruptcy under chapter 11. During that time of 77 reporting banks, 14 banks reported their exposure to Lehman Brother and its related entities including India and abroad. In the aftermath of the turmoil caused by bankruptcy of Lehman Brothers, RBI announced a series of measures to facilitate financial stability and orderly operations of financial markets, which predominantly included providing additional liquidity support options to banks. RBI was able to manage the situation with appropriate u se of a range of mechanisms available to manage the liquidity in the economy such as Cash Reserve Ratio, Statutory Liquidity Ratio, Liquidity Adjustment Facility and Open Market Operations including Market Stabilization Scheme. As seen from the plot of Repo, Reverse repo and Mibor rates with time, 2007 had seen a large capital inflow, leading to excessive liquidity, which was absorbed by RBI through mechanism such as LAF, MSS and CRR. But during crisis, RBI started loosening the tighter monetary policy to provide additional liquidity in the system. In the first phase the cash reserve ratio (CRR) was cut down from 9% to 5.5% (sharpest reduction ever in CRR). The CRR reduction released Rs 1,50,000 cores of primary liquidity in less than a month to the liquidity stressed economy. Statutory liquidity ratio (SLR) was reduced from 25% to 24%. Also RBI allowed a temporary relaxation in SLR to the extent of 1.5%. This facility was granted to enable banks to borrow the RS 60,000 crores of additional liquidity to lending to mutual funds. RBI also cut repo rate from 9% to 4.75%, reverse repo from 6% to 3.25%. Other steps included, increase in the interest rate ceiling on NRI and FCNR bank deposits to attract deposits, providing export credit refinance and reducing provisioning norms on housing loans, real estate loans, personal loans etc. Fiscal Policy Response: Finance minister P. Chidambaram announced that RBI would provide temporary liquidity support of 250 thousand crores to commercial bank and NABARD, against the first debt. The government has decided that the limit of foreign investment (FII) in corporate bond would be raised from $3billion to $6 billion. SEBI also played a celebrated role in managing the flow of money from abroad. The promoters were now allowed to increase their holding in their company up to 75% through creeping acquisition route Earlier restriction prohibited them from acquiring more than 55% companys equity. Recommendations: Several lessons could be learned from the US financial crisis, which could help us to avert any similar future crisis. Especially for Indian Banking System, which was luckily not so entangled with the US or Europe financial system, various guidelines and policies could be recommended. Capital requirements for complex structured products, whose risk assessment is difficult, could be increased from current prevailing norms. Soundly managing, reporting of off-balance sheet items. Capital requirement treatment for off-balance sheet items could be strengthened. Helping banks to oversight the firm level and market level risks arising in future. Discourage the use of complex structured products, which are risky in nature, for banks.

Using the Preterite Perfect Tense in Spanish

The preterite perfect tense is unusual in Spanish, and you  are unlikely to hear it in everyday speech nor have a need, in most situations, to use it. But you should be aware of how it is used in case you come across it in literature or historical accounts. Except when a writer is seeking a literary effect or providing a bad translation from English, the preterite perfect is seldom used in modern writing. Key Takeaways: Preterite Perfect Tense The preterite perfect tense is formed by using the preterite form of haber followed by a past participle.The preterite perfect is not common in modern Spanish, being mainly used for literary effect.In its historical use, the preterite perfect was often used to provide a sense of immediacy of action. How To Use the Preterite Perfect The preterite perfect, also known as the anterior perfect or the  pretà ©rito anterior  in Spanish, is formed by using the  preterite  of  haber  followed by the  past participle. It is used to refer to an event that was completed immediately prior to another event in the past, and thus it is usually used in sentences that also include use of another verb past tense. In other words, a verb in the preterite perfect is almost never the only verb in a sentence. Here is an excerpt from  Cervantes Don Quijote to illustrate:  Apenas  hubo dicho  esto el cristiano cautivo, cuando el jinete se arrojà ³ del caballo y vino a abrazar al mozo.  (The Christian captive had barely said this when the horseman leaped off his horse and came to hug the lad.) Note that the act of saying something (hubo dicho) immediately preceded a past action of hugging the lad. As in the examples below, use of the preterite perfect follows a phrase or word with a time element. Regardless of the specific words used, the word or phrase can be translated as something that means as soon as or immediately after, as that sense of immediacy is conveyed by the verb tense. And while the preterite perfect frequently is translated using an English perfect tense (one using had and the participle), it is often fine to translate using the simple preterite. There seems to be little difference, for example, in meaning between as soon as I saw it and as soon as I had seen it, so feel free to use whichever sounds better. Examples of the Preterite Perfect in Use Y luego que yo la  hube visto, caà ­ sobre mi rostro.  (And as soon as I saw it, I fell upon my face.)Cuando  hubo comprendido  esto no pudo evitar echar un vistazo al chico.  (Once he understood this he could not avoid glancing at the boy.)Una vez que  hubimos encontrado  un à ¡rbol que daba sombra, me ayudà ³ a sentarme en el pasto.  (Once we found a tree that provided shade, he helped me get seated in the grass.)Una vez  hube conocido  varios pueblos de la provincia, decidà ­ escaparme al Sur.  (Once I had met some peoples from the province, I decided to flee to the South.)Cuando todos los dioses  hubieron muerto, Tonatiuh, el sol, comenzà ³ su interminable camino por el firmamento.  (When all the gods died, Tonatiuh, the sun, began his eternal journey through the firmament.()Cuando  hube sabido  del budismo sabà ­a bien lo que era el dharma.  (As soon as I knew about Buddhism, I knew what the dharma was.)

Informative Speech Informational Readings On Space

Chervantis Lee Content Area: 4th Grade Reading Title: Informational Readings on Space Dates: December 5,2016- December 9, 2016 Common Core Standards Addressed CCSS.4. RI.4.1 Refer to details and examples in a text when explaining what the text says explicitly and when drawing inferences from the text. CCSS. 4. .RI.4.2 Determine the main idea of a text and explain how it is supported by key details; summarize the text. CCSS.4 .RI.4.34 Explain events, procedures, ideas, or concepts in a historical, scientific, or technical text, including what happened and why, based on specific information in the text. Instruction Plan Day 1: Introduction to Space Present: Students will participate in a participate in a â€Å"Solar System Games† a series of three various games such as (Name that Planet, Identify Constellations, Navigating the Solar System) designed to assess exiting knowledge and understanding of Space and used as an introduction to the unit. At the conclusion of â€Å"Solar System Games,† I will divide the class into groups of 5 and provide each student with a copy of the book The Moon by: Gail Gibbons Apply: I will have the students read the students read the text quietly to themselves then have them to partner up and work together to identify one thing they liked about the text (one from each group). They should be able to identify the moon and what features it has. Review: At the end of the lesson, have each student tell the class what he/she liked about the book. Then displayShow MoreRelatedFUNCTIONAL STYLISTICS3615 Words   |  15 Pagestypical of the given culture, in which he has to play a definite social role, i.e. to behave according to norms accepted in the given society for such situations. One of the manifestations of a social role of a person is his speech behavior – specific ways of speech organization characteristic of definite spheres of communication. 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There is less emphasis placed on information transmission and greater emphasis placed on developing student skills. 4. There is greater emphasis placed on the exploration of attitudes and values. 5. Student motivation is

Ford Motor Company An American Manufacturer Of...

Ford Motor Company, is an American manufacturer of automobiles headquartered in Dearborn, Michigan and is comprised of about 181,000 employees. With 65 plants worldwide that span over six continents, Ford Motor Company has retained its title as the best selling U.S. brand for three years straight since 2012, according to Forbes. In fact, Ford Motor Company sold approximately 6,330,000 vehicles at wholesale around the world in 2013. By 2020, the company projects its annual global sales to increase between 45% to 55%, equivalent to approximately 9.4 million vehicles. In addition, Ford opened its third assembly plant in Chongqing, China, which became Ford’s largest manufacturing location outside southeast Michigan (corporate.ford.com). Ford†¦show more content†¦Ford Credit is a wholly-owned subsidiary, which offers automotive financing products to and through automotive dealers throughout the world. It earns its revenue primarily from the payments made under retail insta llment sale and lease contracts that it generates, and purchases payments made under dealer financing program. Ford Credit does business in the United States and Canada through business centers. Outside of the United States, Europe is Ford Credit’s largest operation. Other Financial Services includes a range of business, including holding companies and real estate. Ford Motor Company was founded by Henry Ford in 1903. Due to the high profit it generated in the first few months after they incorporated the company, it planted its first international subsidiary in Canada in 1904. By 1919, Henry Ford established Ford Motor Company as a family business by making himself, Clara Ford, and Edsel Ford the sole owners of the business. To balance out the simple and affordable cars that Ford produced, Ford then purchased Lincoln from his former business associate in 1922, which added a more opulent side of the company as Lincoln branded themselves as a car manufacturer that focused on pr oducing luxury cars of historical and aesthetic note. In 1938, Edsel Ford launched Mercury to market entry-level luxury cars slotted between Ford-branded regular models and Lincoln-branded luxury vehicles. By the mid 1950’s, Ford became a publicly traded company; its

Ku Klux Klan Black Panther Party free essay sample

Examines groups origins, political ideologies, leadership, racial views, publics attitudes, violence and social impact. Although the Ku Klux Klan and the Black Panther Party both employed violence to obtain their objectives, few similarities exist between the two groups. The Ku Klux Klan was committed to maintaining the status quo, white supremacy, in the communities in which it operated. Their objective was to suppress the activities of people of color, whom they perceived as threats to the established order. In contrast, the Black Panthers considered themselves revolutionaries. Their goal was to elevate the oppressed masses of African-Americans and to overthrow the existing political system. Thus, the Klan sought to restore a sense of power to whites, while the Black Panthers sought to gain a rightful share of power for blacks. The Ku Klux Klan is a name that describes two distinct groups of white racists in American history. The first Klan. We will write a custom essay sample on Ku Klux Klan Black Panther Party or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page .

Library and information science free essay sample

(Designation), Department of Library and Information Science, University of Delhi, Delhi for his meticulous and expert guidance, constructive criticism, patient hearing and benevolent behavior through out my ordeal of the present research. I shall remain grateful to him for his cordial, cooperative attitude, wise and knowledgeable counsel that acted as an impetus in the successful completion of my project work. I would like to particularly thank the Head of the Department ________________ (Name of the HOD) for giving me guidance and inspiration during my study in the department. We will write a custom essay sample on Library and information science or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I never forget the kind help extended by the HOD. It however, not possible for me to forget the kind of help provided by the faculty members, Professor (Mrs.) S. P. Singh, Dr. Shailendra Kumar, Dr. (Mrs.) P. K. Walia, Dr. K. P. Singh, Dr. (Mrs.) Meera, and Mr. Manish Kumar. I also convey my thanks to Department Library Staff for extending their support in my study in the department. At last but not least my friends in the department who deserves some words of thanks. Chapter 3: Bibliography with Abstract gives complete citation information about the various literatures used in the study with proper abstract according to Modern Language Association of America (MLA) Handbook for writers of research papers, 7th edition. Appendix- I: Author Index with Abstract. This chapter deals with the names of the authors related to references provided in the Chapter-3 of the report i.e. Bibliography with Abstract. All authors in the part are arranged in alphabetically. Appendix- II: Title Index gives at a glance overview of the titles of the articles used in the study and arranged in alphabetical order. The literature survey is conducted for the period 20 20 . It includes the articles of journals, which are subscribed by the Central Library, University of Delhi, Delhi. A search has been conducted on the terms â€Å" -(your topic related keywords†, â€Å" †, in LISA, Emerald, LISTA, Science direct, EBSCO and other database to complete review of literature for the proposed study, including search on e-journals websites. In addition to above searches, bibliography of journal article are also reviewed for more sources as well as websites and consulted various eminent experts. 1.5 METHODOLOGY For preparing of this literature survey I have taken a lot of steps for collecting the articles about the (your topic name). First Sir/madam, told us about the what is literature survey and what are the steps involved for preparing it. He had given me the topic – â€Å"(your topic name)† for the survey. I went to the department library and central library for collecting articles from journals on my assigned topic. I also consulted electronic resources for collecting articles such as emerald, [emailprotected] Infonet, Open-Jgate, Directory of Open Access Journals (DOAJ), etc. After the verification of the entries of the articles by the supervisor my last was the preparation of the report.