Banker institutions Essay Example | Topics and Well Written Essays - 2000 words

Banker institutions - Essay Example Banker institutions play as an intermediary. It provides different types of financial services to both. Banker institutions contribute enormously and significantly in the expansion of economy of any country and development. It facilitates trade, savings and investment. These institutions work as intermediaries and with the help of several instrument and products for different segments of the population and facilitate their customers to grow all-round. The financial market consists of money market and capital market. The former consists of buying/selling of lending/borrowing instruments whereas the later concerns with share, equity etc. Human being is often called as social animal. As the society progresses needs of human being increased leaps and bounds. The earliest financial system comes into knowledge is the' Barter system' in which goods were exchanged. Later on when money comes into existence some sort of informal banking comes into the society. Banking history holds evidences way back to Babylonian civilization. Greeks hold further evidences of banking. Romans later on perfected the administrative aspect of banking and saw greater regulation of financial institutions. Modern economic and financial history is usually traced back to coffee houses of London. The London royal exchange was established in 1565. Banking offices were usually located near centers of trade and in the late 17th century the largest centers for commerce and trade were the ports of Amsterdam, London and Hamburg. By the early 1900s New York was beginning to emerge as a world financial center. Companies and individuals acquired large inves tments in (other) companies in the US and Europe, resulting in the first true market integration. This comparatively high level of market integration proved especially beneficial when World War I came-both sides in the conflict sought funds from the United States, by issuing new securities and selling existing holdings, though the Allied Powers raised by far the larger amounts. Being a lender to the world resulted in the largest growth of a financial economy to that point. Banks during the 1920s were with either the crash or the subsequent depression of the 1930s. Nonetheless, there were three prominent results from these events that had great effect on American banking. The first was the passage of the Banking Act of 1933 that provided for the Federal Deposit Insurance system and the Glass-Steagall provisions that completely separated commercial banking and securities activities. Second was the depression itself, which led in the end to World War II and a 30-year period in which ba nking was confined to basic, slow-growing deposit taking and loan making within a limited local market only. And third was the rising importance of the government in deciding financial matters, especially during the post-war recovery period. As a consequence, there was comparatively little for banks or securities firms to do from the early 1930s until the early 1960s. In the 1970s, a number of smaller crashes tied to the policies put in place following the depression, resulted in deregulation and privatization of government-owned enterprises in the 1980s, indicating that governments of industrial countries around the world found private-sector solutions to problems of economic growth and development preferable to state-operated, semi socialist

Management Consulting Coursework Example | Topics and Well Written Essays - 5000 words

Management Consulting - Coursework Example Theoretically, one can understand the significance of Management Consulting only when they understand its definition at two levels. First is the basic level which looks into the broad 'functional view' of Management Consulting. According to Fritz Steele, Management Consulting is, "any form of providing help on the content, process or structure of a task or series of tasks, where the consultant is not actually responsible for doing the task itself but is helping those who are." Looking at this definition one might feel the importance of Management Consulting is over-hyped. However, it is the second definition which views Management Consulting as a "special professional service" that will help clear this misunderstanding. According to Larry Greiner and Robert Metzger, "management consulting is an advisory service contracted for and provided to organizations by specially trained and qualified persons who assist, in an objective and independent manner, the client organization to identify management problems, analyze such problems, recommended solutions to these problems, and help, when requested, in the implementation of solutions." This approach takes Management Consulting at a different level and calls it a 'professional service which can be carried out effectively only with the help of professionals.' Value addition is a profession in which there is tr... Hence in context of Management Consulting, value addition is carried out when knowledge is being transferred from the consultancy to their client. According to Peter Drucker, "what is unique to management is that from the very beginning the consultant played a key role in the development of the practice, the knowledge and the profession of management." In Management Consulting knowledge is not only being transferred in the form of facts and figures, but also as methods, practices and their application which eventually leads to achieving the consultancy's objectives. This transfer of knowledge which finally leads to value addition exists in two dimensions. First is the 'technical dimension' which deals with finding solutions to problems relating to the nature of management of the clients. Second is the 'human dimension' which deals with the interpersonal relation in the client organization and between the client and the consultancy. In legal terms however, the implication of 'creating value' is totally different and inextricably liked with the shareholders of the company. The fact that the shareholders invest their funds in the company and take unlimited risk in doing so, makes it necessary for the company to pay due considerations to the shareholders needs. Today, the process of creating value in a financial scenario is carried out as an 'operational activity' in 3 different ways. One of them is called 'Market Value Added' which describes value as the difference between the market value and the book value of the company's equity. Another view is the 'free cash flow' approach, which takes the view that value is related only when cash produced by a company's operations