differences between bank centric financial systems and market centric financial systems?
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The market-centric system refers to the absence of explicit state intervention in the financial system.\n\nThe bank-centric system, however, does not view state intervention as a moral hazard. In a nutshell, governments get involved quite often.\n\nThe market-centric system is typically a United States and United Kingdom system. On the other hand, the bank-centric system is typically a European system, where governments are more socialized and have greater influence in the market.
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None of these. Those are both assets.\n\nDividends, common stock, preferred, etc. are more typical of stockholder's equity.
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Retail Banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.\n\nWholesale Banking is banking services between merchant banks and other financial institutions.
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Money Market accounts typically offer a much higher rate of return than savings accounts. They invest in super safe securities such as short term bonds and t-bills. They are completely liquid (you can make withdraws whenever). I highly recommend opening a money market account simply because you earn 2% or 3% more than a savings account. They also adjust to the current interest rate much faster than savings accounts which typically move like molasses on a winter day.
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There is no technical difference at all between a Swiss bank account and one in any other Western country.\n\nThe only thing a bit different in Switzerland is, that the Swiss justice would not help other countries for simple tax fraud except there is some other crime involved.\n\nAnd, of course, the banking standards in Switzerland are very high - transfers to any place of the world are done quickly and you can deal with one bank account at virtually any stock exchange around the world.
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Money Market is simply a generic name used to describe the market wherein banks and other financial institutions lend, borrow and trade money, Certificates of Deposit and other financial instruments. \n\nA Money Market Account is basically a premium account, or a high interest savings account.
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Hi Dave,\n\nI saved an article a while back that addressed this same question. Basically it has to do with the required reserves that banks must have because they take your deposits (and due to the nature of the business).  The article is below but is missing the related tables that it references.  Email me at bimmayute1@yahoo.com and I'll send you the article (word doc).\n\nNicholas\nnsmconsulting.net\n\n\n\nBy Vitaliy Katsenelson, CFA\n02/10/2006 \nInvesting in the stock market is a never-ending learning experience. That's what makes it so appealing and intellectually stimulating. And I inadvertently had one of those live-and-learn experiences just the other day. \nIn my piece on Lloyds TSB(NYSE: LYG), I wrote that banks usually trade at lower price-to-earnings ratios to the market because they are considered riskier investments as a result of their high use of debt. That line caught the eye of Foolish financial editor Joey Khattab, who asked writers Stephen Simpson and Nate Parmelee whether they agreed with my logic. Both disagreed. They argued that larger banks have lower P/Es generally because they are perceived to have a slower or more limited growth potential. \nAt first, I thought there might be a conspiracy of Fools at work against me! So I asked several investment professionals for their opinion. And to my amazement, they all agreed with the Fools. \nSo I looked at some larger banks to see whether they had been slow growers in the past, and I couldn't reach that conclusion. Many of these banks, in fact, had achieved very respectable earnings growth and paid above-average dividends in the process. I then looked at expectations for future earnings growth, and they appeared not to be below average, either. With the exception of Fifth Third(Nasdaq: FITB), which Wall Street once loved to love and now loves to hate, the rest of the pack was trading at a substantial discount to the market and still are. \nInstitution 10-Year Avg. EPS Growth Rate Median 10-Year P/E Current Dividend Proj. EPS Growth \nCitigroup18.6% 15.3 3.8% 10% \nU.S.Bancorp(NYSE: USB)\n17.5% 14.3 4.5% 10% \nFifth Third15.8% 22.7 4.1% 10% \nWells Fargo(NYSE: WFC)\n12.8% 15.6 3.4% 11% \nBank of America(NYSE: BAC)\n9.3% 13.4 4.5% 9% \nAmsouth8.7% 12.8 3.7% 8% \nRegions Financial(NYSE: RF)\n4.6% 13.7 4.0% 8% \nWachovia(1.6%) 13.6 3.9% 10% \nJPMorgan Chase(NYSE: JPM)\n(2.7%) 15.0 3.6% 10% \n\nThe answer must be more complex than just the growth rates. I believe the answer to banks' lower P/Es lies in the following four factors. \n1. Cyclicality \nThe banking business is closely tied to the health of the economy. As the economy expands, demand for loans increases and bad debt declines -- a combination that improves banks' profitability. In a contracting economy, of course, the reverse takes place. \nBecause investors pay up for predictability, they rarely pay a full market multiple for the volatility that comes with cyclical companies. Cyclical heavy-industrial companies like Caterpillar and Ingersoll Rand, for example, usually trade below the market P/E just as a many banks do. \n2. Financial leverage \nWe have not had a bank crisis in the U.S. for a while, so most investors have forgotten just how risky banks can be. But as Warren Buffett has said, by the time you find out a bank has a problem, it will be too late. The equity at most banks stands at meager 6%-10% of total assets, so when a bank does make a mistake, its high leverage amplifies the problem. \n3. Interest rate volatility \nBanks are subject to the risks that come with changing interest rates. They prosper when the difference between long-term and short-term rates -- in other words, the interest rate spread -- is high. However, when that spread narrows, it becomes increasingly difficult for banks to make any money. Many banks have addressed the problem by boosting their fee businesses. For example, fees account for a full 46% of U.S. Bancorp's income, thereby making the com
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Well they actually have nothing to do with each other.  Investment banking is an investment company function where a company invests money in other small companies.  The typical function involved is financial.\n\nInformation systems [in a corporate environment] are related to the data systems used to support the operations of the business -- from financial to manufacturing to marketing information is all held within corporation information systems.\n\nsource - i have an MBA with a concentration in information systems and have dealt with many investment bankers back in my dot-com days.
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SIMPLE ANSWERS:\n1. Mortgage broker: middle man between the lender and consumer\n2. Secondary Mortgage Market: the government buys loans from lenders so lenders can have more money to loan out.\n\nsimple eh?
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an integrated suite of banking applications designed to support deposits, loans, cards customer management and collections for the global banking market.\nCORE would mean the basis of this.
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The first two answers your question received are correct, in a limited sense, but there are great differences that they failed to mention.\n\nThe biggest difference to you, as a consumer, might be the protections available to you when you use a debit or credit card to make a purchase.\n\nIf you use a credit card to purchase something, and you find that the item is faulty, or not as advertised, or the seller fails to deliver it in proper order, or perhaps fails to deliver it at all, you can challenge the charge and if you can substantiate your case, the charge can be reversed.\n\nIf you use a debit card, you are guaranteed no such protections.\n\nI'm not recommending you cut up all your debit cards and use only credit cards, just pointing out a major difference between credit and debit cards, which is what you asked about.
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Equivalent Distributed Money, which is on yearly basis to control separated volume of any bank product, ussually in National Treasure Bank of a country run by government.\n\nElectric Data Management - computer based banking\nElapsing Date Minimum - birth/nursery\nEstimated Divertion and Missed - geography\n...etc...
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Neither one is better than the other. Each product has their own characteristics. Every person in the market for insurance has their own individual needs. NEVER listen to anyone who tells you to only buy either one or the other. Most people will carry a mix of both. The best thing a person can do is consult with a financial professional and have a needs analysis done.
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It depends on your thinking processes.  Although, they are closely related and complementary in knowledge they are quite different.  \n\nAccounting is very mechanical.  There are lots of rules.  Many of them have to be remembered by heart.  Meaning they are difficult to reason your way back into them.  In other words, accounting logic can be somewhat counter-intuitive. \n\nFinance is often viewed as more complicated.  But, with some efforts you can reach a certain finance common sense.  The logic is more intuitive and easier to replicate. \n\nWhen I got my MBA I often noticed that the students who were good in accounting, often struggled with finance and economics.  And, the reverse was true too.\n\nI think a good comparison is Algebra and Geometry.  Algebraic formulas often have to be memorized cold, because you would be hard pressed to replicate them through logic.  Geometry, on the other hand, you stand a much better chance to reconstruct a theorem using logic and common sense.  \n\nAlgebra is like Accounting.  Geometry is like Finance.  That may give you an idea if you are more gifted for one discipline or the other.  If you were equally excellent in high school algebra and geometry you have a very balanced quantitative mind.  And, you will have no problem with either accounting or finance. \n\nIf you need further clarification, please contact me through "Answer."
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The stock exchanges play a role, but they really do not have any other influence except that of facilitating the buying and selling of securities. I really don't understand what you mean when you say "consolidate activities."  But if you are referring to the consolidation of the banking sector, it has already begun. For example, JP Morgan & Chase,  JP MorganChase and Bank One.  You get the picture?  The role of the exchange in this situation was to facilitate the merging of shares between these individual banks into one share to be traded on the Stock Exchange.
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I am a trainee actuary working in a financial reporting department of a major Irish life assurance company.\n\nAt the moment, all of the modelling that we do is deterministic in nature - we set assumptions, run them through our model and analyse the results. We then might run the model with slightly different assumptions to see how sensitive the results are.\n\nHowever, this approach will have to change in the near future. IFRS (International Financial Reporting Standards) are being brought in many countries (including the UK and Ireland) which require products with guarantees to be modelled stochastically. This will require far more runs and will place a lot more demand on computing power.\n\nIndeed, in the UK, I believe they have already brought in some form of stochastic modelling as part of the reappraisal of the way that with-profit business (i.e. policies that pay bonuses) is valued by the life assurers in the UK. The financial regulators have brought in a "realistic balance sheet" for with-profits that uses market consistent stochastic modelling.\n\nI can't speak for the situation in the US as I'm not aware of the situation there. I imagine it's much the same - if not more advanced.\n\nI'm sure stochastic modelling will also be used more in the future in general actuarial modelling as well as financial reporting as it more accurately takes account of risk.\n\nSo to answer your question, stochastic modelling is being used and will be used increasingly over the near future as the computing power capabilities and regulatory requirements increase. It's the way of the future!\n\nI don't know much about the second part of your question but I did a couple quick searches on Google and they seemed to show up a few results (see below).\n\n(I hope my answer wasn't too long and technical - excuse me if it was.)
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central bank or bank job?