Important Terminology Used in Games

Important Terminology Used in Games

3071   18-Jun-2018, Mon

                                              Some Important Terminology Used in Games

Sr. No.
Words Used
Games
1.        
Drop
Rowing 
2.        
Let, Smash, Deuce, Uber Cup, Thomas cup
Badminton
3.        
Bishop, Checkmate, Knight
Chess
4.        
Cover Drive, Boundary, L.B.W.(Leg Before Wicket), C.W.B.(Caught Behind Wicket)   , Ashes , Googly, Duleep Trophy, Ranji Trophy, Wisden Trophy
Cricket
5.        
Hitter, Batter
Baseball
6.        
Caddie, Tee, Par, Put
Golf
7.        
Target, Bull’s Eye           
Archery
8.        
Corner, Bully, Stick, Long Corner
Hockey
9.        
Jump Ball           
Basketball
10.    
Cue, Cannon, Long Jenny, Jigger
Billiards
11.    
Knockout, Welter Weight, Jab, Cut
Boxing
12.    
Dribble, Corner Kick, Penalty, Yellow Card, Tie-Breaker, Subroto Cup, B. C. Roy Trophy, Durand Cup
Football
13.    
Davis Cup, Wimbledon Trophy, French Open, U S. Open
Tennis
14.    
Plug, Muzzle
Shooting
15.    
Derby Cup
Horse Racing

Important Revolutions in India

Important Revolutions in India

5876   18-Jun-2018, Mon

Important Revolutions in India:-

1. Green Revolution Food grains 

2. Grey Revolution – Fertilizer

3. Pink Revolution - Onion production/Pharmaceutical (India)/Prawn production 

4. Red Revolution - Meat & Tomato Production 

5. Yellow Revolution - Oil Seeds production

6. Evergreen Revolution - Overall development of Agriculture 

7. Black Revolution - Petroleum Production 

8. Blue Revolution - Fish Production 

9. Brown Revolution - Leather/nonconventional (India)/Cocoa production 

10. Golden Fiber Revolution - Jute Production 

11. Golden Revolution - Fruits/Overall Horticulture development/Honey Production 

12. Round Revolution – Potato 

13. Silver Fiber Revolution – Cotton 

14. Silver Revolution – Egg and Poultry Production 

15. White Revolution (In India: Operation Flood) - Milk/Dairy production 

Books and Authors

Books and Authors

13013   18-Jun-2018, Mon

  1.  Cryptocurrency for Beginners- Amit Bhardwaj
  2. Making of A Legend- Bindeshwar Pathak
  3. Dalhousie...Through My Eyes - Kiran Chadha 
  4. President’s Lady - Sangeeta Ghosh
  5. Playing With Fire - Katie Price
  6. Future of Indian Universities: Comparative and  International Perspectives - C. Raj Kumar
  7. KadveVachan- Jain saint AcharyaTarun Sagar Maharaj
  8. I am HIV positive, so what?-- Jayanta KalitaManipur bodybuilder Pradip kumar Singh’s inspirational fight to overcome HIV)
  9. I Do What I Do’- Raghuram Rajan
  10. Immortal India- Amish Tripathi
  11. ‘How India Sees the World’ - Shyam Saran
  12. 100 things every professional cricketer must know’ -- BCCI player’s handbook 
  13. Hit Refresh - Microsoft CEO SatyaNadella
  14. Unstoppable: My Life So Far - Maria Sharapova
  15. Bhartiya Kala Mein SalilKridayenEvamSadyahsnataNayika - Dr.Kshetrapal Gangwar and Shri Sanjib Kumar Singh
  16. The Shershah of Kargil Biography of Kargil war hero - Late Captain Vikram Batra written by Deepak Surana
  17. A to Z of Financial Management in Autonomous  Institutions - Dr.Rajat Bhargava and Shri Deenanath Pathak
  18. The Singing Tree -To spread awareness on preventing child blindness
  19. An Insignificant Man Movie on Arvind Kejriwal. It was directed by - Khushboo Ranka
  20. The Coalition Years: 1996-2012 - Pranab Mukherjee’s political autobiography
  21.  Beyond the Dream Girl’ Biography of veteran actress Hema Malini written by Ram Kamal Mukherjee
  22. India 2017 Yearbook - Rajiv Mehrishi
  23. Dreamnation: Uniting a Country with Handwritten Dreams Contains inspiring words of Dr A.P.J. Abdul Kalam. 
  24. A journey towards self-reliance’ --First ever coffee table book on the Department of  Defence Production (DDP)
  25. ‘Two’ Gulzar Bollywood -The Films! The Songs! The Stars!, - S.M.M. Ausaja, Karan Bali, Rajesh Devraj and  Tanul Thakur
  26. "Poeatry" - Vikas Khanna
  27. 'Trivendra Ek Zindaginama - Khairasain ka Sooraj' Nandan Singh Bisht, a doctor
  28. ‘The Way I See It ’ Late journalist Gauri Lankesh ,edited by - Chandan  Gowda
  29. The People’s President: Dr. A P J Abdul Kalam - S.M. Khan
  30. Majuli: Resources and Challenges - Sanjib Kumar Borkakoti
  31. Imperfect - Autobiography of Sanjay Manjrekar 
  32. The Heartfulness Way - Kamlesh Patel 
  33. Dilli Meri Dilli: Before and After 1998- It includes comments by people like Mark Tully, E  Sreedharan and Sunita Narain 
  34. StaniyaSvasasan Mei Addhi Aabadhi- Dr. Sadhana Pandey
  35. 'Exam Warriors' Prime Minister- Narendra Modi
  36. ‘Hisaab Kitaab’ - Actress Anjana Sukhani
  37. 'Even When There Is A Doctor'- Dr. Yashwant Amdekar
  38. “Mere Sapno Ka Bharat”- Tarun Vijay
  39. Adi shankaracharya : The Greatest Hinduism - Pawan Sharma
  40. Andhere se Ujale ki aur - Arun Jaitley
  41. Citisen and society - Dr.Hamid Ansari
  42. A Century is not enough - Saurav Ganguly
  43. Delhi : my time my life - Sheela Dixit
  44. Playing it My Way - An autobiography of Sachin Tendulkar
  45. Test of My Life - Yuvraj Singh
  46. Race of My Life - Milkha Singh
  47. Kiss of My Life - Imran Hashmi
  48. Driven the Virat Kohli Story - Vijay Lokapally
  49. Six Machine - Chris Gayle
  50. AB An Autobiography - Ab Devillers

SUMMITS  2018 PART - 2

SUMMITS  2018 PART - 2

963   18-Jun-2018, Mon

ASEAN Summits

  • ASEAN Association of South East Asian Nation
  • Headquarters - Jakarta, Indonesia
  • Establishment - 8 August 1967
  • Total Countries – 10 (Brunei, Cambodia, Indonesia, Laos, Malaysia, Burma (Myanmar), Philippines, Singapore, Thailand, Vietnam
  • Secretary General – Le Luong Minh (Vietnam)
  • Chairman - Philippines Rodrigo Duterte
  • Recently held and Upcoming ASEAN Summits
    • The First ASEAN summit was held February 1976 in Bali, Indonesia.
    • 30th ASEAN Summit 2017 (April) - Philippines,Metro Manila
    • 31st ASEAN Summit 2017 (November) – Philippine, Clark, Freeport Zone
    • 32nd ASEAN Summit 2018 (April) - Singapore
    • 33rd ASEAN Summit 2018 (November) - Singapore

SAARC Summits

  • SAARC South Asian Association for Regional Cooperation
  • These summits have generally taken place approximately every eighteen months.
  • Headquarters – Kathmandu, Nepal
  • Formation - 16 January, 1987
  • First holder - Abul Ahsan
  • Secretary General– Arjun Bahadur Thapa
  • Countries (8) – Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka
  • Recently Held and upcoming SAARC Summits
    • 18th SAARC Summit 2014 – Kathmandu, Nepal
    • 19th SAARC Summit 2016 – Islamabad, Pakistan (cancelled)

APEC Summits (Asia Pacific Economic Cooperation)

  • Headquarters – Singapore
  • Establishment - 1989
  • Total Countries – 21 countries (Australia, Canada, Brunei, Chile, china, Taiwan, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Peru, Philippines, Russia, Singapore, Thailand, United States, Vietnam).
  • Executive Director – Alan Bollard
  • Recently Held and Upcoming APEC Summits
    • 29th APEC Summit 2017 – Vietnam, Danang
    • 30th APEC Summit 2018 - Papua, New Guinea Port Mores
    • 31st APEC Summit 2019 - Chile
    • 32nd APEC Summit 2020 - Malaysia
    • 33rd APEC Summit 2021 - New Zealand
    • 34th APEC Summit 2022 – Thailand
    • 35th APEC Summit 2023 - Mexico
    • 36th APEC Summit 2024 - Brunei
    • 37th APEC Summit 2025 - Republic of Korea

BIMSTECH Summit

  • BIMSTECH – Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation
  • Countries (7) : Bangladesh – India – Myanmar – Sri Lanka – Thailand – Bhutan – Nepal
  • 3rd BIMSTECH Summit 2014 : Nay Pyi Taw (Myanmar)
  • 4th BIMSTEC Summit 2017 be hosted by Nepal

Global Insurance Summit

  • 10th Global Insurance Summit (2017) : Mumbai

Arab League Summit

  • 2015 : Sharm El Sheikh, Egypt
  • 2016 : Noukchott, Mauritania
  • 2017 : Amman, Jordan

OPEC International Seminar

  • OPEC – Organization of Petroleum Exporting Countries
  • Recently Held and upcoming OPEC Summits :
    • 6th OPEC International Seminar 2015 : Vienna, Austria
    • 7th OPEC International Seminar 2018 : Vienna, Austria (20−21 June 2018)

IBSA Summit

  • IBSA Dilogue Forum (India, Brazil, South Africa) is an international tripartite grouping for promoting international cooperation among these countries.
  • 7th IBSA Summit 2017 : India (New Delhi)

Nuclear Security Summit

  • 3rd Nuclear Security Summit 2014 : The Hague, Netherlands
  • 4th Nuclear Security Summit 2016 : United States

East Asia Summit (EAS)

  • Establishment - 1991 by Malaysian Prime Minister Mahathir Mohamad.
  • Countries : Australia, Brunei, Cambodia, China, India, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, Philippines, Russia, Singapore, South Korea, Thailand, United States, Vietnam
  • The East Asia Summit (EAS) is a forum held annually.
  • EAS meetings are held after annual ASEAN leaders’ meetings.
  • The first summit was held in Kuala Lumpur, Malaysia on 14 December 2005.
  • Recently held EAST Asia Summits
    • The first summit was held in Kuala Lumpur, Malaysia on 14 December 2005.
    • 12th East Asia Summit 2017 – Philippines
    • 13th East Asia Summit 2018 - Singapore

SUMMITS 2018 PART - 1

SUMMITS 2018 PART - 1

1515   18-Jun-2018, Mon

BRICS SUMMIT 2018

  • There are 5 Core Brics Members Countries Brazil, Russia, India, China and South Africa
  • Recently Held and upcoming BRICS Summits and Venues

    6th BRICS Summit 2014 – Fortaleza, Brazil

    • 7th BRICS Summit 2015 – UFA, Russia
    • 8th BRICS Summit 2016 – Benaulim, Goa, India
    • 9th BRICS Summit 2017 - xiamen, china
    • 10th BRICS Summit 2018 - johnnesberg, south africa

G-20 Summit 2018

  • Headquarters - Cancún, Mexico
  • Establishment - 20 August 2003
  • Chairperson - Mauricio Macri
  • Total Member Countries - 20 (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom United States and European Union)
  • Recently held and Upcoming G-20 Summits and Venues
    • 9th G 20 Meeting 2014 – Brisbane, Australia
    • 10th G 20 Meeting 2015 – Antalya, Turkey
    • 11th G 20 Meeting 2016 – Hangzhou, China
    • 12th G 20 Meeting 2017 – Germany
    • 13th G 20 Meeting 2018 – Argentina, Buenos Aires

G-7 Summit 2018

  • Earlier it was G8, Now Russia has been temporarily suspended. So it was renamed as G7.
  • Established on  - 1975
  • Group of Seven Countries – France, Germany, Italy, Japan, United Kingdom, United States of America, Canada.
  • Recently Held and Upcoming G7 Summits
    • 40th G8 Summit 2014 – Brussels, Belgium
    • 41st G8 Summit 2015 – Schloss Elmau, Germany
    • 42nd G8 Summit 2016 – Shima, Japan
    • 43rd G8 Summit 2017 – Italy
    • 44th G8 Summit 2018 – Canada
    • 45th G8 Summit 2019 – France
    • 46th G8 Summit 2020 - United States
    • 47th G8 Summit 2021 - United Kingdom

ADB Annual Meeting

  • ADB – Asian Development Bank
  • Annual meeting of the board of governors of the Asian Development Bank (ADB) held every year.
  • Recently held and Upcoming ADB Annual Meetings
    • 47th ADB Annual Meeting 2014 : Astana, Kazakhstan
    • 48th ADB Annual Meeting 2015 : Baku, Azerbaijan
    • 49th ADB Annual Meeting 2016 : Frankfurt, Germany
    • 50th ADB Annual Meeting 2017 : Yokohama, Japan
    • 51st ADB Annual Meeting 2018 : ADB Headquarters, Manila
    • 52nd ADB Annual Meeting 2019 : Nadi, Fiji

NAM Summit

  • NAM – Non Alighed Movement
  • Membership countries (120 + 2) Two nations namely Azerbaijan Republic and Fiji
  • Recently held and upcoming NAM Summits
    • 17th NAM Summit 2015 – Caracas, Venezulea
    • 18th NAM Summit 2019 - Azerbaijan

NATO Summit

  • NATO North Atlantic Treaty Organization
  • Head Office : Brussels, Belgium
  • Members : 28
  • Secretary General : Jens Stoltenberg
  • Recently held and upcoming NATO Summits 
    • NATO Summit 2014 : Wales (Britain), UK
    • NATO Summit 2016 : Poland
    • NATO Summit 2017 : Belgium (25th May)
    • NATO Summit 2018 : Belgium (11th-12th July)

CHOGM Summit

  • CHOGM - Commonwealth Heads of Government Meeting 
  • Recently held and upcoming CHOGM Summits
    • CHOGM 2015 : Valletta, Malta
    • CHOGM 2018 : London, United Kingdom
    • CHOGM 2020 : Malaysia

CAMELS Rating System - All you need to know

CAMELS Rating System - All you need to know

6230   07-May-2018, Mon

Introduction

CAMELS is a rating system developed in the US that is used by supervisory authorities to rate banks and other financial institutions. It applies to every bank in the U.S and is also used by various financial institutions outside the U.S. This rating system was adopted by National Credit Union Administration in 1987. In 1988, the Basel Committee on Banking Supervision of the Bank of International Settlements (BIS) proposed the CAMELS framework for assessing financial institutions.

 

What is the 'CAMELS Rating System'?

The CAMELS rating system is a recognized international rating system that bank supervisory authorities use in order to rate financial institutions according to six factors represented by the acronym "CAMELS." Supervisory authorities assign each bank a score on a scale. A rating of one is considered the best and the rating of five is considered the worst for each factor.

 

Score scale:

The rating system consists of a score from one to five with score one considered as best and score five considered as the worst for each factor. Banks which obtain the score of one are considered most stable, banks with a score of 2 or 3 are considered average and those with 4 or 5 considered as below average and are subjected to supervisory scrutiny.

 

Factors considered for giving scores:

CAMELS is an acronym of the following factors on which ratings are given by supervisory authorities.

 

C- Capital Adequacy

Capital adequacy refers to the amount of capital the financial institutions has to hold as required by its financial regulator. It is expressed as the Capital Adequacy ratio, which can be defined as the ratio of banks capital to risk weighted assets. This ensures the protection of depositors and investors and financial soundness of the bank. Factors involved in rating and assessing an institution's capital adequacy are its growth plans, economic environment, ability to control risk, and loan and investment concentrations.

 

A- Asset Quality

Asset quality covers an institutional loan's quality which reflects the earnings of the institution. Asset quality evaluates the quality of asset/loan the bank offers. The assets of a bank include cash, government securities, investments, real estates and interest earning loans. Assets such as loans provide returns to the financial institutions in terms of interests and comprise a majority of banks assets carrying high risk. Asset quality deals with quality of the loans, investments; and banks effectiveness in controlling and monitoring the credit risk. This provides the stability of the company when faced with particular risks.

 

M- Management

Assessment of management determines ability of an institution to diagnose and react to financial stress. This component rating is reflected by the management's capability to identify, measure, and control risks of the institution's daily activities. It ensures safe operation of the institution with effective policies and guidelines. The management has to address the risk related to credit, rate of interest, transactions etc.

 

E- Earnings

Ratings on earnings are based on the financial institution's ability to create returns on its assets. These returns enable the institution to expand, retain competitiveness, and provide adequate capital. It can be measured as the return on asset ratio. company's growth, stability, valuation allowances, net interest margin, net worth level and the quality of the company's existing assets are assessed to rate the Earnings.

 

L- Liquidity

To meet unexpected withdrawals from depositors without affecting the daily operations, the bank must maintain liquid cash and assets that can be easily converted into cash. The ratio of liquid cash to asset ratio can be used as a parameter to measure banks liquidity.

 

S- Sensitivity

Sensitivity refers to effect on bank due to market changes. In other terms it refers to market risk. Banks sensitivity to changes in interest rates, foreign exchange rates, changes in price of commodities, etc is measured. It primarily evaluates the interest rate risk and sensitivity to all loans and deposits.

 

Camels composite rating:

The CAMELS system is also based on composite ratings on a scale of one to five based on ascending order of supervisory concern. Each factor is assigned a weight as follows:

Capital adequacy 20 %

Asset quality 20%

Management 25%

Earnings 15%

Liquidity 10%

Sensitivity 10%

RETAIL BANKING V/S CORPORATE BANKING

RETAIL BANKING V/S CORPORATE BANKING

2272   07-May-2018, Mon

INTRODUCTION TO BANKING:

In simple and easy language banking is an institution which deals with the activity of accepting deposits from the clients and lending this money to the borrowers. To accept deposit and lend it to the borrowers is a traditional activity along with this now a days banks are doing different types of banking activity.

But, all in all the banking is mainly divided two types i.e.

A) Retail banking

B) Corporate banking

 

RETAIL BANKING:

a) Retail banking is a part of bank that directly deal with consumers or individuals, located in the nearby city

b) Retail banking is an activity done by bank with the customers face to face.

c) Retail banking is clear or visible face to the consumer.

d) Retail banking is also named as Consumer banking or Personal banking.

e) Accounts (savings and current), wealth management, certificates of deposits, guaranteed investment certificates on residential and investment properties, automobile financing, stock brokerage, private banking, debit & credit cards, types of loans, retirement planning, insurance, foreign currency and remittance services, different types of loans, certificate of deposit, etc.

f) For retail banking, customer deposit is the most important source of fund.

g) Retail bank makes profit from the interest margin of the lender and borrower transaction.

 

CORPORATE BANKING:

a) Corporate banking only provide services to the large business corporations and business groups.

b) Corporate banking first used in United States of America to differ it from the investment banking.

c) Corporate banking is also known as Business banking.

d) In short corporate banking is a one type of segment that caters service to the range of clients from big corporate firm to mid-scale company.

e) Corporate banking earn profit from interest and fees they charge for services.

f) Corporate banking provide services like saving account, current account, loan facility like secured and unsecured and credit facility to corporates.

g) Providing credits to businesses, providing loans and other credit products, commercial real estate, savings and current accounts, trade finance, equipment lending, employer services, derivatives, custody, treasury and cash management, foreign exchange, and other services tailor-made for corporates.

 

Difference between Retail banking and corporate banking

BASIS

RETAIL BANKING

CORPORATE BANKING

Number of clients

Large number of clients

Small number of clients as compare to retail banking.

Cost

Low processing cost

High processing cost

Relationship

Medium level of relations

High level of relations

Transactions

lower value transactions

Higher level value transactions

 

CONCLUSION:

Both corporate and retail banks are important to global and domestic economies. The customer deposits brought in through retail banking enables banks to provide loans to business customers. For their part, corporate banks make loans available to businesses, thereby contributing to expansion of economy.

All in all, both retail and commercial banks are important for the smooth functioning of economy. A lot of large banks have special divisions to handle retail and corporate banking. Both are profitable for most banks. Both offers services related to the segment oriented. They design service keep in mind the need of the clients.

MASALA BONDS

MASALA BONDS

1959   07-May-2018, Mon

What are masala bonds?

Bonds are instruments of debt - usually used by corporates to raise money from investors. Masala bond is a term used to refer to a financial instrument through which Indian entities can raise money from overseas markets in the rupee, not foreign currency. In other words, they are rupee-denominated bonds issued to overseas buyers. This is how it is different from other instruments. Before Masala bonds, corporates have had to dependent on avenues such as External Commercial Borrowings (ECBs).

Let’s take an example.

Suppose an Indian entity issues masala bonds worth Rs 10 crores with a promise to pay Rs 11 crores the next year. Now the foreign investor will lend the dollar equivalent of Rs 10 crores. Now after a year, the Indian entity will return the dollar equivalent of Rs 11 crores.

 

How the name came?

a) IFC issued a Rs 1,000 crore bond to fund infrastructure projects in India. These bonds were listed on the London Stock Exchange (LSE).

b) IFC then named them Masala bonds to give a local flavour by calling to mind Indian culture and cuisine.

c) This kind of naming has been done before also. IFC’s Chinese yuan-denominated bonds are called Dim sum bonds, Japanese yen-denominated bonds are called Samurai.

d) Before the word masala, some names like Samosa, Ganga, and Peacock were also in line to be attached to these rupee-denominated bonds.

 

Why Masala Bond?

Masala bonds has a quite significance for the Indian economy. Indian Issuers face less risk in Masala bond as compared to bond markets. The currency risk is entirely borne by the foreign Investors. Masala Bonds are issued to foreign investors and settled in US dollars. Unlike external commercial borrowings (ECBs), where Indian companies raise money in foreign currency loans, the currency risk lies with the investor and not the issuer, Masala bonds are similar to external commercial borrowings (ECBs), in which Indian companies raise funds in foreign currency and are exposed to rupee-dollar fluctuations. If ECBs (ExternalCommercial Borrowings) help companies to take advantage of the lower interest rates in international markets, the cost of hedging the currency risk is significant, but If unhedged, adverse exchange rate movements bites the borrower. Inversely in the case of Masala bonds, the cost of borrowing can work out much low. Overseas investors will be eligible to hedge their exposure in rupee through permitted derivative products with banks in India to hedge the risks. It helps Indian companies to diversify their bond portfolio. Earlier, companies used to issue only corporate bonds. Masala bonds are an addition to their bond portfolio. It helps the Indian companies to reduce the cost. Bonds issued in Indian companies carries an interest rate of 7.5%-9.00%, whereas Masala Bonds are issued below 7.00% interest rate outside India. It also helps Indian companies to attract a large number of investors as these bonds are issued in the offshore market. An offshore investor earns better returns by investing in Masala bonds rather than by investing in his home country. If the rupee appreciates at the time of maturity, then an investor will benefit from his investment in Masala bonds.

 

Who can issue rupee denominated bonds?

a) Any corporate (registered as a company under the Companies Act) or body corporate created out of a specific act of the Parliament is eligible to issue Rupee denominated bonds overseas.

b) Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) coming under the regulatory jurisdiction of the SEBI are also eligible (September 2015 regulation).

c) These bonds will be issued for a minimum maturity period of 5-years.

d) Banks incorporated in India will not have access to these bonds.

 

How does Govt. and RBI view Masala Bonds?

a) The local currency bond markets can contribute to financial stability by reducing currency mismatches and extending the duration of debt.

b) It will also be a sign of early acceptance of the Indian currency in trading and settlement overseas, showing the confidence of investors and can lead to internationalization of the currency over the medium and long term.

c) Foreign investors prefer to hedge their risks overseas because there are limited products in the Indian market, especially for longer periods.

d) The other worry, if the overseas rupee bond market takes off, will be about the growth of the Indian corporate bond market and Indian banks as top companies shift to another market, impacting the growth here.

 

Some facts:

a) Masala bonds are a step to help internationalize the Indian rupee and also deepen the Indian financial system.

b) They are the first rupee bonds listed on the London Stock Exchange.

c) They can be issued for three or five or seven-year maturities.

d) The first Masala bonds were issued on 10 November 2014 under IFC’s $2 billion offshore rupee program.

e) They are different from External Commercial Borrowings (ECB) in a way that in ECB the currency risk lies with the Indian issuer while in case of masala bonds, the currency risk lies with the overseas investor.

f) Like ECB, masala bonds also provide cheaper funding as compared to domestic markets.

g) Though currency risk lies with the investor, but then also the overseas investor has many advantages like they have very few investment options in other countries due to weak economic conditions globally.

h) Coinciding with Prime Minister Narendra Modi’s visit to the UK last year, organisations such as HDFC, Yes Bank, and the Railways had announced they were going to raise funds through this route from the London market.

LIST OF COUNTRIES & THEIR CENTRAL BANKS

LIST OF COUNTRIES & THEIR CENTRAL BANKS

2167   06-May-2018, Sun

 

   A

Afghanistan

Bank of Afghanistan

Albania

Bank of Albania

Algeria

Bank of Algeria

Angola

National Bank of Angola

Argentina

Central Bank of Argentina

Armenia

Central Bank of Armenia

Aruba

Central Bank of Aruba

Australia

Reserve Bank of Australia

Austria

Central Bank of the Republic of Austria

Azerbaijan

The Central Bank of the Republic of Azerbaijan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B

Bahamas

Central Bank of The Bahamas

Bahrain

Central Bank of Bahrain

Bangladesh

Bangladesh Bank

Barbados

Central Bank of Barbados

Belarus

National Bank of the Republic of Belarus

Belgium

National Bank of Belgium

Belize

Central Bank of Belize

Benin

Central Bank of West African States (BCEAO)

Bermuda

Bermuda Monetary Authority

Bhutan

Royal Monetary Authority of Bhutan

Bolivia

Central Bank of Bolivia

Bosnia and Herzegovina

Central Bank of Bosnia and Herzegovina

Botswana

Bank of Botswana

Brazil

Central Bank of Brazil

Brunei Darussalam

Monetary Authority of Brunei Darussalam

Bulgaria

Bulgarian National Bank

Burkina Faso

Central Bank of West African States (BCEAO)

Burundi

Bank of the Republic of Burundi

 

C

Cambodia

National Bank of Cambodia

Cameroon

Bank of Central African States

Canada

Bank of Canada

Cape Verde

Bank of Cape Verde

Cayman Islands

Cayman Islands Monetary Authority

Central African Republic

Bank of Central African States

Chad

Bank of Central African States

Chile

Central Bank of Chile

China

People’s Bank of China

Colombia

Bank of the Republic, Colombia

Congo

Bank of Central African States

Costa Rica

Central Bank of Costa Rica

Croatia

Croatian National Bank

Cuba

Central Bank of Cuba

Curaçao

Central Bank of Curaçao and Sint Maarten

Cyprus

Central Bank of Cyprus

Czech Republic

Czech National Bank

 

D

Denmark

National Bank of Denmark

Dominican Republic

Central Bank of the Dominican Republic

 

E

East Caribbean area

Eastern Caribbean Central Bank

Ecuador

Central Bank of Ecuador

Egypt

Central Bank of Egypt

El Salvador

Central Reserve Bank of El Salvador

Equatorial Guinea

Bank of Central African States

Estonia

Bank of Estonia

Ethiopia

National Bank of Ethiopia

European Union

European Central Bank

 

F

Fiji

Reserve Bank of Fiji

Finland

Bank of Finland

France

Bank of France

 

G

Gabon

Bank of Central African States

Gambia, The

Central Bank of The Gambia

Georgia

National Bank of Georgia

Germany

Deutsche Bundesbank

Ghana

Bank of Ghana

Greece

Bank of Greece

Guatemala

Bank of Guatemala

Guinea

Central Bank of the Republic of Guinea

Guinea-Bissau

Central Bank of West African States (BCEAO)

Guyana

Bank of Guyana

 

H

Haiti

Central Bank of Haiti

Honduras

Central Bank of Honduras

Hong Kong SAR

Hong Kong Monetary Authority

Hungary

Magyar Nemzeti Bank

 

I

Iceland

Central Bank of Iceland

India

Reserve Bank of India

Indonesia

Bank Indonesia

Iran

The Central Bank of the Islamic Republic of Iran

Iraq

Central Bank of Iraq

Ireland

Central Bank of Ireland

Israel

Bank of Israel

Italy

Bank of Italy

 

J

Jamaica

Bank of Jamaica

Japan

Bank of Japan

Jordan

Central Bank of Jordan

 

K

Kazakhstan

National Bank of Kazakhstan

Kenya

Central Bank of Kenya

Korea, Republic of

Bank of Korea

Kosovo

Central Bank of the Republic of Kosovo

Kuwait

Central Bank of Kuwait

Kyrgyzstan

National Bank of the Kyrgyz Republic

 

L

Lao People’s Democratic Republic

Bank of the Lao PDR

Latvia

Bank of Latvia

Lebanon

Central Bank of Lebanon

Lesotho

Central Bank of Lesotho

Liberia

Central Bank of Liberia

Libya

Central Bank of Libya

Lithuania

Bank of Lithuania

Luxembourg

Central Bank of Luxembourg

 

M

Macao

Monetary Authority of Macao

Macedonia

National Bank of the Republic of Macedonia

Madagascar

Central Bank of Madagascar

Malawi

Reserve Bank of Malawi

Malaysia

Central Bank of Malaysia

Maldives

Maldives Monetary Authority

Mali

Central Bank of West African States (BCEAO)

Malta

Central Bank of Malta

Mauritius

Bank of Mauritius

Mexico

Bank of Mexico

Moldova

National Bank of Moldova

Mongolia

Bank of Mongolia

Montenegro

Central Bank of Montenegro

Morocco

Central Bank of Morocco

Mozambique

Bank of Mozambique

Myanmar

Central Bank of Myanmar

 

N

Namibia

Bank of Namibia

Nepal

Central Bank of Nepal

Netherlands

Netherlands Bank

New Zealand

Reserve Bank of New Zealand

Nicaragua

Central Bank of Nicaragua

Niger

Central Bank of West African States (BCEAO)

Nigeria

Central Bank of Nigeria

Norway

Central Bank of Norway (Norges Bank)

 

O

Oman

Central Bank of Oman

 

P

Pakistan

State Bank of Pakistan

Palestine

Palestine Monetary Authority

Papua New Guinea

Bank of Papua New Guinea

Paraguay

Central Bank of Paraguay

Peru

Central Reserve Bank of Peru

Philippines

Central Bank of the Philippines (Bangko Sentral ng Pilipinas)

Poland

National Bank of Poland

Portugal

Bank of Portugal

 

Q

Qatar

Qatar Central Bank

R

Romania

National Bank of Romania

Russian Federation

Central Bank of the Russian Federation

Rwanda

National Bank of Rwanda

 

S

Samoa

Central Bank of Samoa

San Marino

Central Bank of the Republic of San Marino

Saudi Arabia

Saudi Arabian Monetary Agency

Senegal

Central Bank of West African States (BCEAO)

Serbia

National Bank of Serbia

Seychelles

Central Bank of Seychelles

Sierra Leone

Bank of Sierra Leone

Singapore

Monetary Authority of Singapore

Slovakia

National Bank of Slovakia

Slovenia

Bank of Slovenia

Solomon Islands

Central Bank of Solomon Islands

South Africa

South African Reserve Bank

Spain

Bank of Spain

Sri Lanka

Central Bank of Sri Lanka

Sudan

Bank of Sudan

Suriname

Central Bank of Suriname

Swaziland

The Central Bank of Swaziland

Sweden

Sveriges Riksbank

Switzerland

Swiss National Bank

Syrian Arab Republic

Central Bank of Syria

 

T

Tajikistan

National Bank of the Republic of Tajikistan

Tanzania

Bank of Tanzania

Thailand

Bank of Thailand

Togo

Central Bank of West African States (BCEAO)

Tonga

National Reserve Bank of Tonga

Trinidad and Tobago

Central Bank of Trinidad and Tobago

Tunisia

Central Bank of Tunisia

Turkey

Central Bank of the Republic of Turkey

Turkmenistan

Central Bank of Turkmenistan

 

U

Uganda

Bank of Uganda

Ukraine

National Bank of Ukraine

United Arab Emirates

Central Bank of United Arab Emirates

United Kingdom

Bank of England

United States

Board of Governors of the Federal Reserve System (Washington) Federal Reserve Bank of New York

Uruguay

Central Bank of Uruguay

 

V

Vanuatu

Reserve Bank of Vanuatu

Venezuela

Central Bank of Venezuela

Vietnam

State Bank of Vietnam

 

Y

Yemen

Central Bank of Yemen

 

Z

Zambia

Bank of Zambia

Zimbabwe

Reserve Bank of Zimbabwe

 

Shadow Banking: All You Need to know

Shadow Banking: All You Need to know

1531   05-May-2018, Sat

Introduction to Shadow Banking:

Shadow banking is a new word hardly heard to common people. Shadow banking mostly deals with the big lenders and borrowers. Shadow banking is one type of mediate which helps to make easy procedure between the lenders and borrowers. Shadow banking has grown in importance in the last decade or so and was one of the primary factors in the sub-prime mortgage crisis of 2007-2008 and the global recession that followed it.

 

History:

The term SHADOW BANKING first came into an existence in 2007. Economist Paul McCulley used it first time at FEDERAL RESERVE BANK OF KANSAS CITY’S ECONOMIC SUMMIT.

 

Meaning

a) The term shadow banking is used while a non-banking financial intermediates make provision for the commercial banks.

b) Shadow banking is a comprehensive term to do financial activities among the non-banking financial institutions.

c) In simple language shadow banking is a financial intermediaries involved to facilitate credit in the financial system.

d) They generally carry out traditional banking functions, but do so outside the traditional system of regulated depository institutions.

 

Size of Shadow Banks

According to a report by the Financial Stability Board, USA and the Eurozone alone account for one-third of the global shadow banking assets, which stood at $75 trillion in 2013. This 75 trillion accounts for about 25% of the total financial assets. The three jurisdictions accounting for most of the shadow banking activities are:-

i) Eurozone area

ii) UK

iii) China

In India, Russia, Argentina, Turkey, Indonesia, and Saudi Arabia the amount of non-bank financial activity remained below 20% of GDP at the end of 2012. However, the sector is growing rapidly.

 

Conditions conducive to Shadow Banking

According to a report by the Financial Stability Board, the prevalence of the following conditions spur the growth of institutions engaging in shadow banking activities:-

i) Strict banking rules combined with low real interest rates and yield rates

ii) Existence of a large pool of investors searching for higher returns.

iii) Large demand for assets from institutions

 

Differences between Shadow Banks and Banks

a) Shadow banks cannot create money unlike commercial banks, which by virtue of being depository institutions can do so

b) Banks are comprehensively and tightly regulated, whereas shadow banks lacks regulatory oversight and transparency with respect to its business operations.

c) Commercial banks raise funds through mobilization of public deposits to a large extent. Shadow banks, on the other hand, raise funds mostly through market-based instruments such as commercial paper, debentures, or other such structured credit instruments.

d) While the liabilities of the shadow banks are uninsured, commercial banks’ deposits enjoy Government guarantee to a limited extent generally.

e) During times of distress, banks have access to multiple recourses set up by the body responsible for regulatory oversight such as direct access to central bank liquidity etc. However, shadow banks have no such options, and will have to fend for themselves

There is a stark differences in the way the shadow banks operate as compared to other traditional banks. However, in certain instances there is only a thin line separating the two.

 

Regulation of Shadow Bank Activities

Shadow Banking institutions exploit the prevalent economic system’s inefficiencies through financial innovations. However, the sub-prime crisis exposed the extent of damage that can be caused by unregulated banking activities. The crisis and the recession that followed it provoked a call for increased regulation of the markets globally. USA passed the Dodd-Frank Act in 2010 to strengthen the arms of the Federal Reserve to regulate all institutions of systemic importance. The EU (European Union) has also put in place some measures regulating securitization and credit rating agencies. Also, the Financial Security Board, at the specific request of G-20 countries, has been working towards ‘strengthening the oversight and regulation of the shadow banking system so that the risks emanating from them may be mitigated.’ India is also working towards improving the regulatory framework so as to curb the shadow banking activities that risk financial stability.

 

Dangers of Shadow Banking

Financial Stability and Systemic Risk Concerns

Shadow Banking acts as a means to escape regulatory oversight. In many instances, banks themselves composed part of the shadow banking chain by floating a specialized subsidiary to carry out shadow banking activities. Also, banks may invest in financial products issued by other shadow banking entities. And since shadow bank entities have no access to recourse to central bank funding or any other safety nets, they remain vulnerable to shocks. Such inter-linkages and the huge size of shadow bank activities give rise to systemic risk concern, as a seemingly minor issue affecting one entity may amplify and send shocks through the system. And the capacity of shadow banks to precipitate systemic crisis as manifested in the recent global financial crisis is still fresh in the minds of the people.

 

Regulatory arbitrage spread across geographical jurisdictions

Shadow banking activities are spread across border and different legal and regulatory frameworks across geographical jurisdictions pose a handicap in curbing them. For instance, high taxation in some countries may lead to adoption of tax avoidance strategies by financial firms. Tax haven countries keep taxes low to attract foreign capital and create jobs. So, companies in high taxation countries restructure their financial activity by shifting some high tax activities to low tax countries. This, at times, has an adverse effect on financial stability, especially when the whole global economy is highly integrated and interconnected.

 

Challenges in the conduct of Monetary Policy

‘Opaqueness of structure, size, operations and inter-linkages of shadow banks with commercial banks and other arms of the financial sector distorts the information content of monetary policy indicators and undermines the conduct of monetary policy.’ Central Banks and other regulatory agencies depend on domestic indicators while determining monetary policy, which is modified at regular intervals. Lack of clarity as to the activities conducted in the financial system prohibits it from formulating a coherent policy that tackles all the urgent issues. Since these entities broadly remain outside the regulatory purview, a clear picture of the extent of their activities and involvement in the financial system is lacking. Therefore, these non-bank financial intermediaries act as an impediment to the successful implementation of monetary policy as they remain immune to direct central bank control. A Study has found that ‘growing level of intermediation activities of the non-bank financial intermediaries causes a shift in deposits from banks to non-banks in South-East Asian Countries.

 

Procyclicity and amplification of business cycles

Shadow banking activities have a tendency to act pro-cyclically. Pro-cyclicity means that that there is a positive correlation between the activity in question and the overall condition of the economy. This means that when there is an economic boom, the activities of shadow banks are on the rise and when there is a downturn, they shrink their activities. This amplifies financial and economic cycles. ‘Their leverage would rise during booms as they face little problem in arranging funds as assets price rise and margins on secured lending remain low. On the contrary, during the downturn phase as the funding becomes difficult and asset prices fall, the margins on secured loan become tighter, shadow banks get compelled to undertake deleveraging.’ Also, pro-cyclicality of shadow banks worsen due to their inter-connectedness with banks. According to the Financial Stability Board, inter-connectedness of the shadow banks with the banks heighten the risks of asset price bubbles like the one that occurred before 2008.

 

Shadow Banking in the Indian context

In the Indian financial arena, shadow banks are known as Non-Banking Finance Companies (NBFCs). However, NBFCs in India have been regulated by the RBI (Reserve Bank of India) since 1963.

a) Regulation of NBFCs in India began in the wake of failure of several banks in the late 1950s and early 1960s where a large number of ordinary depositors lost money. The Deposit Insurance Corporation was formed by RBI to provide the necessary safety net for the bank depositors.

b) Later in 1996, the regulatory structure over the NBFCs was further tightened with rigorous registration requirements, enhanced reporting and supervision.

c) RBI also prohibited NBFCs from raising deposits from the public. However, this led the NBFCs to source their funding from the banking system, thereby raising systemic risk issues. So, the RBI brought asset side prudential regulations onto the NBFCs.

 

Conclusion

Though the disadvantages and risks of shadow banks have been highlighted here, it is undeniable that shadow banks, including NBFCs and other service a need of the population that is left unaddressed by the mainstream banks. Shadow banks subserve the economy by playing a complimentary and supplementary role to mainstream banks and also aid in furthering financial inclusion, which is an important issue for India. Large banks due to their reluctance to enter into less profitable areas, have left 41% of Indian households without bank accounts, thus making them an easy target for chit funds. Hence, instead of aiming to completely abolish shadow banking, the Government must increase regulatory oversight and keep the law/rules updated to dealing with the changing economic environment. While enabling prudential growth of the sector, financial stability must be maintained and consumers’ and depositors’ interests must be protected.
 

 

POINTS TO REMEMBER:

a) It don’t take deposits like commercial banking

b) It is also called as the unregularly activities done by regular institutions.

c) It works in lesser transparency, rules and regulations as compared to commercial banking.

d) Shadow banks make money by market instruments like debentures, commercial paper.

e) Shadow bank’s liability is not insured. It deals with the high level of risk.

f) Shadow banking make most of their money by being a mediate between the borrowers and lenders.

g) They earn revenue the fees charges for service and interest rates spreads.

h) No need to follow regulations like initial capital requirements.

i) It has come under the increased scrutiny since 2008. This system is prominent worldwide.

j) It is a complex system of investments like Asset-backed securities, derivatives, Credit default swaps and repurchase agreements.


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