Central Banks are the backbone of an economic system. Any fracture can create serious concerns for the financial future of the country. In recent years, there have been numerous articles raising questions about the credibility of central banks. This article focuses the basics of central banks with a strong focus on its relation with the financial crises.
Switzerland remains one of the most stable economies across the world and has not been in conflict with another country since 1505. With strong political stability and high per capita income across the world, it has also managed to keep its unemployment rate low. With Basel having headquarters of Bank of International Settlements (facilitates cooperation among the world’s central banks), Switzerland is considered one of the biggest tax havens in the world. The offshore accounts with Swiss banks have partial or full exemptions depending on the private bank. The country implements an extremely high level of secrecy when it comes to disclosure of financial assets of its clients.
Banking Industry has evolved tremendously over a period of time. Nowadays, modern banking sector is doing away with its traditional methods and shifting focus to a more advanced and digitally connected network. While many countries are still struggling to get basic banking facilities, there are others that are growing not only in number but facing fierce competition from non-banks. As we all know, banking, in recent years, is not all about depositing and taking loans but much more.
Six years of the financial turmoil has given a reason for many debates, research, arguments, discussions and even research work to many. To many nothing has really changed, in fact to them, we might be looking at something more serious in 2015. The question that is important is whether there is any truth to the occurrence of second financial crisis or are we just in denial?
2015 will be a year that will test many emerging economies like Brazil, Russia and China. Advanced countries will take measures to revive past growths and try to remain in the race. Low oil prices will lower inflation in many economies but will raise concerns in many others.
On October 30, 2014 Paul Krugman wrote in New York Times ” Japan used to be a cautionary tale, but the rest of us have messed up so badly that it almost looks like a role model instead.” Japan’s economy has been in coma for the past 20 years and its revival has been the focus of many debates and case studies (and many criticisms). With promising reforms like Big Bang and Abenomics, it is important to check whether Japan has overcome some hurdles or whether the reforms proved to be a complete failure.
On January 6, 2013 the global banking sector won a significant easing of Basel III Rules, when the Basel Committee on Banking Supervision extended not only the implementation schedule to 2019, but broadened the definition of liquid assets.