Foreign Investment in the Banking System

In: Business and Management

Submitted By Kristjana
Words 7302
Pages 30



Foreign investment in the banking system


Pedagogu udhëheqës: Msc. Rozafa (Alibali) RISTANI

Punoi: Kristjana KRONAJ

Qeshor 2013


Ky punim është zhvilluar në kuadrin e mbylljes së studimeve të mia pranë Departamentit të Financë-Kontabilitetit në Fakultetin Ekonomik të qytetit të Shkodrës dhe është rezultat i një pune të gjerë kërkimore gjatë këtij viti të fundit. Prandaj gjej rastin të falenderoj së pari familjen time që më kanë shoqëruar në çdo hap të jetës sime. Ishin ata që me ngrohtësine e tyre më kanë ngritur sa herë që rrëzohesha. Më kanë ndihmuar në formimin e karakterit tim, duke më këshilluar në çdo zgjedhje që unë bëja, më kanë motivuar për të ndjekur studimet e larta dhe falë tyre unë jam këtu ku jam sot. Një falenderim të veçantë ia dedikoj profesoresh Rozafa Alibalit për gatishmërinë dhe ndihmesën e saj në zhvillim e kësaj teme. E natyrisht nuk mund të lë pa përmendur edhe shoqërin time që m’i ka bërë më të bukura vitet shkollore.

Faleminderit të gjithëve.

TABELA E PËRMBAJTJES • Hyrja................................................................................................................................fq3 • Përmbledhja ekzekutive .................................................................…..........................fq 4 • Kapitulli 1 1.1 Fillimet e bankave në Shqipëri........................................................................................fq 6 1.2 Banka e parë shqiptare në vitin 1925..............................................................................fq 6 3. Sistemi bankar shqiptarë në periudhen e diktarurës koministe…...

Similar Documents

Investment Banking

...The UNOFFICIAL GUIDE to INVESTMENT BANKING Issued by CONTENTS MYTHS AND REALIT IES 6 OVERV IEW OF INVE STMEN T BANK ING INTRODUCTION 4 WHY AN UNOFFICIAL GUIDE TO INVESTMENT BANKING? 3 ASSET 8 MANAGEM ENT 12 GLOBAL BANKING FINANCE 10 GLOBAL MARKETS 16 HUMAN ES RESOURC 20 22 GROUP TECHNOL OG & OPERA Y TIONS LEGAL, RISK & CAPITAL 24 WORKING THE PROCESS TOP TIPS 28 30 GLOSSARY Why an “Unofficial Guide to Investment Banking?” The aim of this guide is to give you a fresh view of investment banking. A brochure is helpful, but can read a little like a catalog. We think you need to know what your life would really be like, challenging out-of-date myths and stereotypes, so you are able to make the most informed decision possible. This is an honest look at investment banking and is based on the experiences of people just like you, who have now gone through the graduate program and come out the other side with blossoming careers. It is the inside story of investment banking written by analysts for graduates, and you won’t hear this tale anywhere else. We’re going to tell you about all the divisions you could work for, what life’s really like for analysts and show you that there’s more to banking than pitch books, power lunches and pinstriped suits. And if you still want to go into banking once you’ve heard the inside scoop, we’ll tell you about how to get there......

Words: 13591 - Pages: 55

Foreign Direct Investment

...| | | Foreign Direct Investment | | | | | | Marking its second investment in India, Warren Buffet’s Berkshire Hathaway will induce investment in a chlorinated polyvinyl chloride (CPVC) industrial unit in Gujarat, through its wholly owned subsidiary Lubrizol Corporation. Lubrizol will initially invest Rs 1,177 crore (US$ 242 million) in the project and its construction work is expected to commence by January 2013.In order to tap more foreign funds, Cox and Kings has got the nod from Foreign Investment Promotion Board (FIPB) to increase its foreign equity by 10 per cent to 53.94 per cent, from the previous 43.81 per cent. Currently, foreign promoters have a stake of 19.87 per cent and FIIs hold 22.72 per cent. FIPB has granted its approval to the travel company to raise Rs 750 crore (US$ 154 million) from foreign markets.Meanwhile, Singapore-based Global Schools Foundation plans to invest Rs 300 crore (US$ 61.6 million) and start 25 schools in India over 2011-16. The foundation owns and operates Global Indian International Schools (GIIS) and Global School of Silicon Valley (GSSV) across eight countries all over the world.Policy InitiativesRecently, the government has further liberalised the FDI mechanism for allowing overseas investment in bee-keeping and share-pledging for raising external debt.Moreover, it has eased FDI norms for construction of old-age homes and educational institutions. The modification endorses removal of issues pertaining to the......

Words: 4805 - Pages: 20

Investment Banking

...Difference Between Investment Banking and Merchant Banking Investment vs. Merchant Banking Bank is an organization that provides a range of financial and some non financial services to its customers. The main source of income, that makes the bank survive is the interest charged from those to whom the bank has given loan. A bank accepts deposits from its customers and pay interest to that deposited money, while it lends money to those who need finance and charge interest from them. The interest rate chargeable from the borrowers is higher than the interest rate payable to depositors. This is how a bank, which is traditionally known to normal people, earns revenue. Banks can be broadly categorized as retail banks and investment banks. The above mentioned revenue generating procedure is more applicable to a retail bank. The revenue models of investment and merchant banks are different, which we will discuss in this article. Investment Banking An investment bank is a financial institution that engages in the issuance of securities on behalf of its client. Investment banks are the banks, which facilitate both the investor, who is in search for good investment opportunity and the investee, who is searching for capital to invest in viable projects. Unlike other types of banks, investment banks are not accepting deposits from customers; that is, investment banks do not provide regular banking services to the general public. The main Investment banking activities are......

Words: 1541 - Pages: 7

Investment Banking &

...[pic] Master in Business Administration COURSE SYLLABUS Investment Banking And Structured Finance Analytics Course Code: IBSFA Faculty: Prof. E. B. Perez Course Description This is an advanced finance course suited for finance majors. However, the focus is on the practice and business of investment banking. Corporate finance skills are assumed, as well as concepts regarding structured finance. Grading Class Participation 50% Class Presentation 50% Course Outline |Session |Cases, Readings and Exercises | | | | |1 |Case: CML Group, Inc. (A) and (B) | | | | | |Session 1 CML Group, Inc. (A) and (B); the (C) for class distribution. | | |2 Hutchison-Whampoa LTD - Yankee Bond Offering | | |3 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) ...

Words: 2616 - Pages: 11

Investment Banking

...Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL FOREWORD BY JOSEPH R. PERELLA Investment Banking Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, please visit our Web site at Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL John Wiley & Sons, Inc. Copyright C 2009 by Joshua Rosenbaum and Joshua Pearl. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the......

Words: 138300 - Pages: 554

Investment Banking

...Investment Banking: Past, Present, and Future by Alan D. Morrison, Saïd Business School, University of Oxford and William J. Wilhelm, Jr., McIntire School of Commerce, University of Virginia investment banks are changing fast. Forty years ago the industry was dominated by a few small partnerships that made the bulk of their income from the commissions they earned floating securities on behalf of their clients. Today’s investment banks are huge full-service firms that make a substantial proportion of their revenues in technical trading businesses that started to attain their current prominence only in the 1980s. The CPI-adjusted capitalization of the top ten investment banks soared from $1 billion in 1960 to $194 billion in 2000. Between 1979 and 2000, the number of professionals1 employed by the top five investment banks (ranked by capitalization) rose from 56,000 to 205,000.2 The enormous upheavals documented in the previous paragraph raise a number of difficult questions. What have the investment banks of today got in common with their predecessors? Is it possible to draw any meaningful parallels between businesses that today call themselves investment banks and the investment banks of 20, 40, or even 100 years ago? What is the source of the recent changes to the investment banking landscape, and can we say anything about the likely future direction of the industry? These questions point to a more fundamental one: namely, if investment banks did not exist, would we need to......

Words: 11416 - Pages: 46

Investment Banking

...20458Investment Banking | | | Program: Associate of Business Administration (Financial Services) Course: Investment Banking Course Code: CM 20248 Tutorial Group: T03 (Monday) Tutor: Mr. Joseph MOHAN Date of submission: 5 November, 2010 Word Count: | | | | | | | | | | | | | | | | | | Investment Banking ________________________________________________________________________________________________________ Content * Proposal Purpose……………………………………………… | P. 3 | * Background of the Hong Kong-Zhuhai-Macao Bridge………. | P. 4 | * Benefit created by the HZMB………………………………… | P. 5 - 6 | * Financing Model of the HZMB……………………………...... | P. 6 – 7 | * Sponsors of the HZMB……………………………………...... | P. 8 | * Syndication Strategy………………………………………….. | P. 9 | * Risk Allocation Strategy. …… . . ……. . .…………………… | P. 10 | * Term Sheet. . . . . . .… . .…… . .…………………… .……… . | P. 11 – 12 | * Potential Risks and Risk Management…………………………. | P. 13 - 14 | * Conclusion…………………………………………………….. | P. 15 | * Reference……………………………………………………… | P. 16 - 18 | Investment......

Words: 2418 - Pages: 10

Foreign Investment in Chinese Banking Sector: Hr Challenges well as many challenges for foreign firms trying to integrate themselves into the Chinese banking sector. • Despite having extremely conservative guidelines, the Chinese government managed to attract significant foreign interest and investment. • However, while most of the developing nations adopted trends set by the global banking giants, China made its own norms and forced those banking giants to comply with it. • Instead of the traditional mergers and acquisitions practiced in most foreign direct investments, China offered strategic partnerships to a maximum permissible limit of 20%, while total foreign ownership in any bank was capped at 25%. • The global banks developed customized lending policies, banks cards, and asset management products to cater to the huge retail banking market. • The partnership between the foreign partner and the Chinese bank not only needed to be a strategic fit and complementary in nature, but it also had to be in line with Chinese culture and value system and had to gradually modify the system to make it more beneficial for both parties. • Biggest challenge for the strategic alliances came from the alignment of the critical human resource management (HRM) functions such as HR planning, staffing, appraisal, training and development, employee retention, etc., with Chinese culture. Key Issues Differences in Business Cultures • The differences in culture, labor markets, and employments systems between China and other......

Words: 595 - Pages: 3

Investment Banking

...Why have you chosen to apply to this particular role and why at Barclays?Barclays recruits graduates into four business areas: Investment banking Global markets Business functions Personal and corporate banking The business area There’s a description of the four divisions in the business areas section of the bank’s website. Read the one for your chosen division, but, as some descriptions are light on detail, it’s essential your research doesn’t stop there. Barclays Early Careers & Graduates channel on YouTube is a useful source of information. It features short videos in which potential and current graduate and student hires at Barclays discuss aspects of their chosen business area and role. If you have done a summer internship or spring week with Barclays, or met recruiters or employers on campus, reflect on the information about the business that you obtained before you begin your application. Making notes would be useful at this stage. The graduate programme Each graduate programme fits into one of the four business areas above. For instance, technology, finance, treasury and compliance roles come under business functions. It’s important that you familiarise yourself with Barclays’ business structure to get a better understanding of how you’d fit into the business if you were taken on. The business areas section of the website includes descriptions of the sub-divisions that graduates are hired into. Read the one that applies to you and check......

Words: 839 - Pages: 4

Investment Banking

...Investment banking companies in Bangladesh are of two types: open-ended and closed-ended. The open-ended ones, generally referred to as mutual funds, repurchase shares in any quantity as and when holders offer them for sales. Thus, the amount of shares of the open-ended investment companies in market changes continually in response to public demand. Closed-ended investment companies sell only a specific number of ownership shares. An investor wanting to acquire shares of a closed-ended investment company must find another investor who wishes to sell. Investment companies do not take part in the transaction. In addition to selling equity shares, closed-ended companies issue a variety of debt and equity securities including preferred stock, regular and convertible bonds, and stock warrants for raising funds. Investment banks act as intermediaries between issuers and investors. The issuer sells securities to investment bankers who in turn sell the securities to investors. The investment banks own the securities until they are resold. For firms seeking to raise long-term funds, investment banks provide assistance through a number of functions including underwriting, marketing of securities, corporate finance, sale and brokerage, asset management and research. In underwriting, investment banks can protect themselves by forming a syndicate, which allows them to diversify the risk. One investment bank acts as the managing underwriter that oversees the underwriting activities of all......

Words: 964 - Pages: 4

Investment Banking

...Parker J Investment Banking Even though Bear was involved with investment trades around the world, the Fed did not grant Bear a government bailout. The Fed did step in to help maintain stability for the market, but LTCM for Bear was out of luck. Bear differed from its downward pressure on global securities prices, market stability, the possibility and probability to crash fast and hard, and the market environment was simply too hectic. Well first and foremost, the biggest change that could have been made, would be to hold the bridge tournament a couple months earlier. I believe that would have changed the outcome of Bear Stearns and allowed Cayne to save the day. All joking aside, from reading the article or case study, CDO’s and ARM’s were not the only destruction of Bear, just the final blow. Similar to what is happening in China right now with failing/decreasing hedge funds, Bear called in $500 million of short term debt to cover its losses from an unprofitable hedge fund. There was also a $38 million dollar fine paid to the SEC for fraudulent behavior. They were caught up in the CDO craze like everyone else and accepted way too many mortgages without knowing the details. Cayne must not have grasped the situation in its entirety. I can’t believe he announced they had $11.4 billion in cash and was now taking the situation seriously. The hole was much deeper than that. March 10, 2008, I believe, is where they were caught in the biggest fraud. Even though they......

Words: 524 - Pages: 3

Banking System

... Contents i Financial system in India Sections 1.0 Financial system in India - Introduction - Evolution - Direction of household sector savings Chart 1.1 Tables 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Household sector savings in financial and physical assets Proportion of gross household savings in financial assets Banks and financial institutions: Financial assets Indian financial system: Key financials Capital markets: Resources mobilised Stock market: At a glance Mutual funds vis-à-vis bank deposits Mutual funds: Sales and redemptions Mutual funds: Categorywise resourse mobilisation Incremental mutual fund collections to bank deposits Banks: Investments in shares NBFCs: Total assets and deposits NBFCs: Net owned funds vis-a-vis public deposits 10 10 11 11 12 13 14 14 14 15 15 15 16 Financial system in India: Overview 9 8 8 8 8 CRIS INFAC BANKING ANNUAL REVIEW: AUGUST 2002, 136 PAGES i Financial system in India 1.0 This chapter provides an overview of the financial system in India and its evolution, especially in the post-1991 reform period. The evolution of the Indian financial system can be viewed, broadly in two phases, pre-1991 and post-1991. In the post-1991 phase, a series of steps were taken to liberalise and develop the financial system. As a result of the reforms, the depth and width of the financial markets in India, in terms of the number of financial instruments and the number of active participants in the market, has improved.......

Words: 3584 - Pages: 15

Foreign Direct Investment

...Mousumi paul 04 03 md. sirajul mostafa 06 04 md. azizul mostafa 08 05 Moshfik- ur-rhaman 10 06 md. miraj talukder 12 07 Jenifar karim 14 08 md. saidul meher 16 09 Morium benta mahabub 18 Group No. 01 Course no. 221 Submitted to: Mr. Samir Kumar Sheel Associate Professor Department of Marketing University of Dhaka Submitted by: Name: Id: BBA 15th Batch Department of Marketing University of Dhaka Date of Submission: November 10, 2010 Letter of transmittal November 10, 2010 Dr. Samir Kumer Sheel Associate Professor Department of Marketing University of Dhaka Dear Sir, We the members of group one are truly happy to present our “term paper”on “Investment Environment in Bangladesh”. This term paper was assigned to us as a essential requirement of the ‘Macroeconomics” course in the forth Semester. The Project program was an experience of rediscovering our potentials. This report has given us an opportunity to apply our theoretical expertise, sharpen our views, ideas, and communication skills, and bridge them with the real world of practical experience, which will be a good head start for our future professional career. During the preparation of the report we faced some problems that have been erased out with your propound lecture and assistance in class lecture. Lastly we would be thankful once again if you please give your judicious advice on our effort. Sincerely......

Words: 5133 - Pages: 21

Foreign Direct Investment

...Incentives Sufficient? Foreign direct investment (FDI) is increasingly becoming a preferred form of capital flows to developing countries in recent years, as compared to other forms of capital flows. The reasons for this are not hard to seek. In the context of the gloom and despair of the heavy debt burden plaguing these countries, FDI promises to be the bright ray of hope for harnessing capital flows to the country’s economic development without the pangs of capital repayment with interest. In this context Feldstein and Razin (2000) and Sodka (forthcoming) note that the gains to host countries can take several other forms: • FDI allows transfer of capital and technology, which is not possible through financial investment in goods and services. • FDI also promotes competition in the domestic input market • Profits generated by FDI contribute to the corporate revenue in the host country • Operation of new ventures by FDI leads to employee learning in the host country who learn how to manage and operate the businesses. This contributes to human capital development of the host country. • Profits generated by FDI contribute to tax revenues in the host country FDI is different from other major types of external private capital flows in that it is motivated largely by the investor’s long-term prospects for making profits in production activities that they directly control. Foreign bank lending and portfolio investment, in contrast, are not......

Words: 4598 - Pages: 19

Foreign Institutional Investment

...when t he government of India opened the door for foreign capital in the way of direct investm ent and t hrough foreign institutional investors. Consequently, the international capital inflows have been increased tremendously during last two decades. The capital is being invested by f oreign investor through mutual funs, investment trusts, banks, port folio mangers, charitable t rusts etc. and it has been boosting the growth of Indian economy since then. Moreover, t he growth rates in GDP i.e. around 7 to 8 percent per year as compared to 2 to 4 percent in most of the developed economies and higher interest rate attracted the foreign capital the most. This paper is an attempt to analyze t he relationship of FII investment with economic growth of India, in addition to comparative analysis of preferred investment stock of FII. * Assistant professor, Department of Commerce, D.A.V. College, Sadhoura , YNR, Haryana. **Assistant professor, Department of Management, Haryana Engineering College, Jagadhri, Haryana. International Journal of Research in F inance & Marketing 611 IJRFM Volume 2, Issue 2 (February 2012) ISSN: 2231 -5985 FII is defined as an institution organized outside India for the purpose of making inve stments into the Indian securities market under the regulations prescribed by SEBI. The term „FII‟ may be defined as overseas pension funds, mutual funds, investment trust, asset management company, nominee......

Words: 6637 - Pages: 27