Gold can no longer be seen as a hedge against inflation and the recent spurt in its prices means that it should be looked at as a `crisis hedge' and any talk of recession rather than the fear of inflation pushes up the price of gold . The article explores the various reasons behind the current spurt in the gold prices.
Is the Super Economic Power Receding? : What it Means for India
-- U Jayalakshmi Srikumar
The article examines the multi-dimensional views of defining a `recession' and particularly the ramifications of recession in the US. It tries to focus on some of the issues that are likely to impact the Indian economy. Besides, it assimilates and presents some of the eminent personnel and perspectives from the industry.
In what appears to be the largest trading fraud ever carried out by a single person, a young trader at French bank Société Générale is accused of making unauthorized bets on stock markets that cost the bank a loss of nearly $7.2 bn.
With globalization, the Indian economy has vastly improved. Besides, the Indian rupee too has gained strength and become more volatile. In this backdrop, the article observes the requirement for currency futures in India.
On the one hand, the appreciation of Asian currencies is attracting foreign inflows, while, on the other hand, is posing a threat to export growth. Most of the central bankers of emerging economies are faced with the challenge of `impossible trinity'.
Depreciating Dollar : Its Implication for the World's Economy
-- Ritu Sinha
The depreciating dollar is perhaps bad news for the US. Underlying that depreciation must be a loss of confidence in the US equity, which could trigger an abrupt fall in the US equity prices. This article addresses the issue.
Of late, hedge funds have become dynamic thanks to their skillful managegment and the existing market inefficiencies. However, those involved in the management as well as the academicians are hard put to explain the phenomenon. This article is an attempt to do that, covering various aspects like market influence on these funds, investment strategies, etc.
Exchange-Traded Funds : Option for Smart Investors
-- Ratna V
Among the various products launched of late, exchange-traded funds are gaining momentum in the country. This is a welcome move as it signifies that India is catching up with the developed markets.
Capital Account Convertibility: Global Experiences ,Volatility in Oil Prices: Causes and Implications
-- Laila Memdani, Asis Kumar Pain
Currency convertibility refers to the freedom to convert the domestic currency into other internationally-accepted currencies and vice versa. Convertibility in that sense is the obverse of controls or restrictions on currency transactions. While current account convertibility refers to freedom in respect of payments and transfers for current international transactions, Capital Account Convertibility (CAC) would mean freedom of currency conversion in relation to capital transactions in terms of inflows and outflows. Recently, there has been a lot of discussion on full CAC in India. There have been reports that full convertibility will be introduced by December 2008.
Automated Teller Machines (ATMs): The Changing Face of Banking in India
Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.
The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario
If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.
Indian Scenario
The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.
