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What are Basic bank accounts?
If you have any constraints in opening an account such as bad credit rating or low income; basic bank accounts provide a solution to your problem. These accounts are easy to open and do not cause undue hassles like other type of accounts such as current account or savings account.
What are basic bank accounts?
The main idea behind a basic bank account is to provide the owner with the basic banking facilities. The holder of a basic bank account gets a safe place to deposit his/her money and also gets a cash card to withdraw it. Usually there are no other benefits (such as issue of a cheque book, facility to overdraw money, or credit of interest) attached to a basic bank account. This is a very basic account that can be opened with very nominal or zero charges.
How to open a basic bank account?
As per your needs, you can choose a bank or a building society where you want to open your bank account. Usually all the banks go in for a credit history check. You need to provide them with an ID proof such as a passport and an address proof such as your tax bill. However, there are some banks that let you open a basic account with them even if you have been declared bankrupt. Unlike other bank accounts, a basic bank account is easy to open and maintain.
Important points to consider
Before you open a basic bank account, you should enquire about the cash machines that are available to you for withdrawing cash. Not all the banks offer the facility to access your account at post office. So, if you want that facility, enquire about it in advance. If you are looking for bank accounts for bad credit people, a basic bank account is the right option for you. You can compare various banks that provide bank accounts for those with poor credit rating and choose the best for your needs.
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For More Information about basic bank accounts, bank accounts and bank accounts for bad credit, please visit our website at http://www.compareprepaid.co.uk
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Financial Services Technology for Collateral Management
Businesses around the world have an ever-increasing important task for practicing smart collateral management. The globally faced financial pressures caused by massive credit, bank, and financial institution failures and the stringent governmental regulations imposed as a result have lead to a need for financial institutions to adopt new solutions for managing and monitoring collateral. One of the main solutions for better management and monitoring of collateral is through the use of financial services technology.
Financial services technology from a collateral management standpoint may help to limit the genuine risk that improperly managed collateral can lead to institutional failure. Collateral can take on many forms including currency, stocks and bonds, real estate, jewellery, commodities, and other equitable securities and valuable assets. One form of collateral or another is almost always required for certain types of financial transactions including derivatives, business lending, and consumer lending. Financial institutions most commonly encounter the need for collateral within derivative transactions.
Derivative transactions do not involve tangible exchanges of assets, but rather are agreements to exchange assets at a later date. Essentially the agreement to perform a financial transaction at a later time has value determined by another underlying item. The potential scenarios that result in derivative transactions are infinite, as they can be based on anything and applied to any financial situation. Placing collateral in a derivative transaction helps to secure that the obligation will be met if the outcome of the underlying item causes the derivative transaction to work in the other parties favour.
Due to these highly complex financial transactions requiring collateral, proper collateral management would be extremely difficult to maintain without the aid of a financial services technology. Technology focusing on collateral is most often seen in the form of sophisticated software programs and exchanges that are maintained on private and local networks or on the Internet. Most of the sophisticated software available has features such as valuation of collateral across various financial markets. Proper valuation of collateral allows for further calculation of exposure to potential losses if a derivative transaction should work against a financial institution. This data and analysis can then further aide in risk management in relation to collateral.
Other considerations from financial services technology focused on collateral management include potential reductions in the costs associated with collateral transactions. Better management of collateral allows for more efficient and effective use of financial resources. The abilities of software to alert and automatically perform trending and analysis limits the number of personnel required to manually review and monitor market fluctuations in collateral values. The savings from these types of administrative cost reductions can be of added benefit to many financial institutions seeking to reduce operational costs. Another factor favouring proper management of collateral include regulatory requirements to do so. The Sarbanes-Oxley Act of 2002, which was created to ensure financial responsibility and transparency, requires proper process controls and monitoring of financial activities including derivative transactions.
Financial institutions all over the world are currently being faced with unprecedented pressures to actively monitor their activities. As many of these activities are cantered around derivative transactions that are almost always backed with collateralization by either one or both parties, it is therefore important for financial institutions to practice proper collateral management. With institutional failures from banks to investment firms, the financial institutions have a responsibility today more than ever to ensure financial transactions are handled with the due diligence they require.
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About the Author:
Financial services technology from a collateral management standpoint may help to limit the genuine risk that improperly managed collateral can lead to institutional failure.
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principles of microfinance
PRINCIPLES OF MICROFINANCE
PRADEEP RAJ.S
MBA Student
AMC ENGINEERING COLLEGE
Abstract
Microfinance is a financial innovation in banking and financial industry products and services a
powerful tool to encourage the small/medium enterprise with the needs of financial resource this promotes both the economic activity of the country and also generates self employment and economic growth of the country .the concept of microfinance was influenced by Bangladesh government establishing the Grameen Bank of Bangladesh the purpose of this study is to understand the micro financing fundamentals, working methods, principles and practices to construct appropriate suggestions and conclusions.
Introduction
Microfinance is an innovation of financial products to satisfy the needs of the poor families and rural sector of the economy. The expression of microfinance was effectively used in 1970’s when Bangladesh established its Grameen Bank of Bangladesh under the leadership of Mohammad yunus (Nobel peace prize winner in 2006) who shaped the modern microfinance industry.
Microfinance is a powerful tool of providing financial resources to the primary sector and low income group to encourage entrepreneurship and growth of economic activity in an economy.
Our study in this paper is mainly an attempt to understand the concept of microfinance and its need and importance of microfinance and its working and principles and practices of microfinance governance.
Objectives of the study
To study the fundamentals of micro financing.
To study and understand working method for microfinance.
To identify the challenges and principles and practices of microfinance governance.
To construct relative suggestions and solutions to improve microfinance institutions performance in the economy
Research methodology
The research study adopted here is mainly based on exploratory studies using secondary data on selected microfinance institutions and articles and research work by experts from ACCION International to study and analyze the principles and practices of microfinance industry.
Definition of Microfinance
“Microfinance is banking the unbankables, bringing credit, savings and other essential financial services within the reach of millions of people who are too poor to be served by regular banks ,in most cases because they are unable to offer sufficient collateral, in general ,banks are for people with money, not for people without”-(Gert Van Maanen)
Fundamentals of micro financing
To ensure that the responsible entrepreneurs and low income group people in the economy are the target customers.
To provide all necessary information and educate the target customers about risk involved in credit facilities,interet rates, borrowing methods ,repayment schedules, contravention of rules and fines and penalties etc ,to bring self confidence among its customers for a responsible loan repayment to operate profitable under microfinance industry.
To modify the traditional financing industries into modernized and specialized institutions to reduce transaction cost and provide innovative financial services through good delivery system which serves the poor people to promote their welfare and economic development of the country.
Functioning method of microfinance institutions.
Identifying the potential customers and the target market say a particular rural area or a village.
A careful examination of potential customer of microfinance institution.
Developing suitable business operations which have a practicability and business viability.
Analyzing the external and internal factors influencing the work environment
Developing good delivery system for providing innovative financial services.
Establishing strong business contacts with customers availing credit and loan facilities, for interest payments and repayment of principal amount.
Taking appropriate and quick response to the problems relating to payback of interest and principal provided to customers.
Essentials f microfinance governance.
Ownership of micro finance institution: The key to successful management of MFIs are the structure of MFIs it can be public, nonprofit, for profit and credit union.etc
Dual objectives: A MFI should have both financial objectives and welfarist approach also both to maintain solvency position and to serve low income group people.
Responsibility of microfinance institutions: MFIs should have a fiduciary responsibility to provide continuous access to financial resources to low income group and use the mobilized resources from floating instruments in the local securities exchange and loans from banks wisely and carefully.
Risk Management: MFIs should have good risk assessment techniques like collecting customer’s information about their creditworthiness, skill to face increased competition, strong financial skills to mobilize savings and provide innovative financial products.
Promoting best practices in microfinance governance: The best practice to improve MFIs governance can be to hire qualified people and appoint board and directors if the MFI has a strong corporate structure. The directors must have financial markets expertise, marketing expertise, fundraising skills, good legal and regulatory expertise knowledge in credit risk management.
Conclusion and suggestions
Future research can be done to know the essentials of microfinance as a tool for economic growth and solve unequal distribution of income and wealth in the developing countries.
Improvement in the financial services industry can help the MFIs to help low income group people to promote entrepreneurship and take up self employment.
The accounting practices, debt collection methods and interest rate determination should be well regulated and governed properly by MFI.
The most important debate to solve is whether the primary objective of MFIs is to improve welfare or maintain financial sustainability.
Bibliography
Principles and practices of microfinance governance: Rachel rock, Maria otero, Sonia Saltzman, ACCION International, august 1998.
Principles of microfinance, September 06, page 1 to 4, world education Australia.
www.nabard.org.
Gert Van Maanen, Microcredit: Sound Business or Development Instrument, Oikocredit, 2004.
Contact
Pradeep Raj.S
Email: pradeepraj1@live.com
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About the Author:
Pradeep Raj.S
MBA student
email:pradeepraj1@live.com
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Know some special qualities of Gold options
Digital options trading now are not a tiny revolutionary investment path obtainable just from a few on-line trading portal. A number of Gold options and Binary options places for us have come into view this year along with white labeling means. Consequently it appears like we might see a number of more binary options or trade options sites surface out of the nascent stages in the nearby future. At the moment binary options had singed from a diminutive and emerging venture to a broadly handy online trading trend, and what it implies for the everyday merchant?
This may be one of nice thing or dreadful thing depending on the form of Digital options, Gold options and Binary options trader you are. Also, if you are fond of the sensation of going through a gigantic hypermarket passageway and having alternative from above 70 alike tomato sauces, subsequently the future looks shining for you. It looks that in a small time, you may have a extensive variety of websites to get from to create your binary options trader account. And nobody is impeding you from having many.
We all are acquainted with the crucial laws of delivery and claims. Competition causes business to Endeavour new means to draw the attention of consumers by decreasing prices, improving excellence and creating innovative merchandise and services. You will locate yourself weighing against Digital options, Gold options and Binary options accounts contract agreements and progressing where you obtain the most preeminent range. Thus keep eyes open for monetary benefits proposed blend with your first Digital options, Gold options and Binary options investment. Who is familiar with, other choices like welcome benefits and Royalty schemes can also creep into this profitable area.
Something to maintain in mind as you trade Gold options is that there are a number of unlike issues that can affect the price of commodities including money supply and inflation. Other factors like politics, weather, transportation costs and technology also have a strong affect on cost, which is why options trading on commodities are so interesting and beneficial
As a result you could conclude that online Gold options scenario is gigantic. Using distinctive algorithms, the portal can maintain online trading services any time on an ample choice of Gold options.
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Get useful information on <a rel=”nofollow” target=”_blank” href=”http://www.bbinaryblog.com”>gold options</a>. Visit <a rel=”nofollow” target=”_blank” href=”http://www.bbinaryblog.com”>http://www.bbinaryblog.com</a> to know more about different options available.
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How to Apply for BPI Bank Account
Bank of the Philippine Islands (BPI) is one of the famous banks in the Philippines. Recently, BPI was awarded by Finance Asia, a prestigious finance institution in Asia as the as the best cash management bank in the Philippines. Finance Asia also recognized BPI as the best trade finance bank in the Philippines.
BPI has two subsidiary banks – BPI Family Savings Bank and BPI Direct. BPI Bank deals primarily on corporate accounts like salary account of employees. BPI Family Savings Bank is focused on individual savings accounts or for individual person who may not be an employee. While BPI Direct is catered primarily on mobile, telephone and online banking.
When opening a BPI savings account, you need to do the following procedures and bring the needed requirements for opening a savings account.
1. Choose the BPI branch of your choice. It is better to choose a branch near your residence.
2.) Upon entering the bank, proceed to New Account Desk. Tell the bank officer you want to open a savings account and then fill-up all forms that will be given to you.
3.)Give the initial deposit for your savings account together with the complete requirements. For BPI ATM savings account, P3,000 and BPI ATM Family savings account, P1,000. For BPI savings account with passbook, P10,000 is minimum initial deposit.
4. Claim your ATM card or passbook which is normally available for pick-up after 3-5 banking days. Activate your ATM card in the ATM machine.
It is easy to open a BPI bank account when you have the complete requirements so don’t forget to bring it all.
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About the Author:
Gil Tenorio is residing in South Korea working in a shipbuilding company. He’s married with one son. He likes blogging finance, investing, Christian songs and playing guitar. If you like this article, feel free to visit, Learn Financial Education.
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