A Guide to Financial Institutions by Charles R. Geisst (auth.)

By Charles R. Geisst (auth.)

An introductory survey of economic associations in Britain and the U.S.. Discusses the constitution and services of business banks, development institutions, funding banks, existence insurance firms and pension money, and American federal organizations. additionally encompasses a bankruptcy at the monetary deregulation and occasions of the Eighties that helped create the present monetary weather. contains examples and tables during the text.

Show description

Read Online or Download A Guide to Financial Institutions PDF

Best introductory & beginning books

Introduction to Stellar Astrophysics: Basic stellar observations and data

This textbook advent to the fundamental parts of primary astronomy and astrophysics serves as a origin for figuring out the constitution, evolution, and saw houses of stars. the 1st 1/2 the publication explains how stellar motions, distances, luminosities, colours, radii, plenty and temperatures are measured or derived.

Additional resources for A Guide to Financial Institutions

Example text

Since loans are assets of banks, their composition and quantity are directed by portfolio limits; the same sort of constraints that an individual would set for himself when investing in the securities markets. If a bank determines that home mortgages should comprise no more than, say, 15 per cent of its overall loan book it will not exceed that limit, at least temporarily, and will set its lending rates accordingly. A bank actively seeking home loans will offer more advantageous rates than those not doing so; the higher the interest rate charged the less likely the bank is to originate mortgages.

Those countries with the strictest regulations are those with the most active equity markets. Others tend to favour bonds as the primary source of company financing. As a result, equity investment is not popular and bond financing and investment u {~ w t a different element of risk attached. Therefore, the trust departments of many continental banks invest many more bonds in their clients' portfolios than equities, with substantially less risk. In many cases, local regulations recognise this trend and do not separate it from commercial banking.

The major culprit behind the penchant for dollars was unusuallyhigh real American interest rates; higher than those in any of the competitors' economies. Under these conditions, the central banks of the seven major industrialised countries met several times between 1985 and 1987 to attempt a remedy. Meeting at the Plaza Hotel in New York, the Group of Seven (G7), decided to implement moves to bring about a dollar depreciation by acting in concert. The central banks began a selling of dollars that eventually led to a marked decline in the currency's value.

Download PDF sample

Rated 4.43 of 5 – based on 50 votes