| Determination
of Economic Capital for Steel Sector Financing by Banks
--
Ajay Pathak
An
analysis has been carried out to estimate Economic Capital required against Banks'
financing under steel sector, based on two methods: one, the KMV-Merton Model
used to evaluate the probability of default of the individual obligors; and two,
Credit Risk+ Model for Portfolio Analysis, and based on these two,
a compound model is created for the measurement of credit risk. Banks will be
able to use the stated process to determine the economic capital in relation to
regulatory capital, and ascertain whether the risk taken in a sector is commensurate
with the capital employed thereof or not. It also helps them optimize the demand
on economic capital. ©
2007 IUP . All Rights Reserved.
Corporate
Governance Interventions and
Performance of Indian Banks
-- A
P Pati The
impact of micro-level interventions initiated by the Reserve Bank of India (RBI)
on the basis of the recommendations of the Advisory Committee on Corporate Governance
is supposed to be reflected in the post-implementation period financial indicators
of Indian banks. On the basis of 22 samples, the empirical study of the last five
years, both at the aggregate and group levels, however, provides an inconclusive
inference about the association of governance and performance. The statistically
insignificant relationships and non-impact on key variables like asset quality,
cost of capital, capital adequacy and profitability suggest that in the Indian
context, corporate governance (CG) appears to be a non-determinant factor. ©
2007 IUP . All Rights Reserved.
Factors
Affecting Customers Choice of Retail Banking
--
S Venkata Seshaiah and Vunyale Narender
This
paper attempts to analyze the factors that affect the choice of customers in choosing
the retail banks by the customers. The study involves a survey of 1000 bank customers
using questionnaire as the research instrument, augmented with informal interviews
of the customers and also makes thorough use of the information available on the
internet. In the study, the authors have tried to identify various factors and
also analyzed as to which of these factors exert the greatest, moderate and relatively
lower influence as choice criteria. It is an attempt to study the consumer behavior
with respect to the people's choice of retail banks. Efforts are made to dwell
deep in the psychology by talking to the customers surveyed, whereever possible.
The 15 different factors that could be identified, approximately in the order
of their importance, are (1) Safety of Deposits, (2) Size and Strength, (3) Accuracy,
(4) General Service Quality, (5) Speed of Delivery, (6) Proximity, (7) Security
of Environment, (8) Cordiality of Staff, (9) Price and Service Charges, (10) Product
Packaging, (11) General Public Impression, (12) Peer Group Impression, (13) Face
Lift (Structural), (14) Friendship with Staff and (15) Advertisement and Publicity.
According to the findings, based on the empirical study, the first six factors
exert the greatest influence, next four have moderate importance, and the rest
five have relatively lower influence. Thus, retail banks must reorganize their
activities to achieve their corporate mission through customer orientation. In
the competitive and capitalistic markets consumer is sovereign and therefore the
bankers must reengineer their view and recognize the predilection and tang of
the retail customers. ©
2007 IUP . All Rights Reserved.
Fraud
in Internet Banking: A Malaysian Legal Perspective
--
Gita Radhakrishna and Leo Pointon Internet
banking made its advent in Malaysia in June 2000. This paper examines the legal
issues specific to internet banking, focussing on the incidence of fraud and its
prosecution. The objective of research is to investigate three questions in relation
to Malaysia. Firstly, the incidence of fraud in internet banking; secondly, the
adequacy of the relevant regulations and statutes; and thirdly, whether the setting
up of a cyber court would better facilitate the prosecution of such financial
crimes in Malaysia. Technology and the borderless nature of the internet present
fraudsters with manifold opportunities. `Phishing' leads to identity theft
and `money laundering' has been found to be the main threat to internet
banking, the selected fraud for study in this paper. The newness of the subject
and traditional banking secrecy have contributed to a dearth of legal literature
pertaining to issues in internet banking, specific to Malaysia. This research
attempts to fill the current lacuna. The methodology adopted was to liaise with
Bank Negara Malaysia, the Commercial Crimes Department of the Polis diraja Malaysia
and the Commercial Crimes Division of the Attorney General's Chambers by means
of questionnaires, personal interviews and discussion for data with respect to
Malaysia. Further material was sourced from the relevant statutes, text books,
journals, research papers and case studies. It was found that the applicability
of various existing laws and banking practices to internet banking has not been
fully tested in Malaysia and is still evolving. ©
2007 IUP . All Rights Reserved.
Size
or Business Segment: Which is Important?
-- Tamal
Datta Chaudhuri This
paper provides a perception of the financial sector reforms undertaken in India
since 1991 through the rise and decline of an All India Development Finance Institution
(DFI). It traces the origin of the DFI, the various structural changes it underwent,
the changing environment it faced, and its eventual inability to survive. With
financial sector reforms, the various options that were there before the DFI is
presented and its financial performance is analyzed. This paper also highlights
the basic areas that a financial intermediary has to safeguard against for compliance
with regulatory norms and long-term viability in a competitive financial system.
©
2007 IUP . All Rights Reserved. |
