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Tuesday, March 12, 2013

How Banks Work, How do banks make money?

What is a bank?
 The capital requirements to start a bank often vary greatly from state to state. In Florida, the suggested capital requirement is $6 million for a bank in a metropolitan area and $4 million for a bank in a rural area. In other states, such as New York, that amount might be $10 million or more for metropolitan areas. Those capital requirements are usually determined by your strategic plan and pro forma financial statements for the market you've selected.
As mentioned above, the organizing group may be responsible for 10 percent to 15 percent of that amount. The remainder is sold to shareholders. Organizing groups may shoot for 400 to 750 or more shareholders in order to raise the money needed to start the bank. Usually, the more shareholders a bank has, the better its chance of succeeding. 

How do banks make money?
Banks are just like other businesses. Their product just happens to be money. Other businesses sell widgets or services; banks sell money -- in the form of loans, certificates of deposit (CDs) and other financial products. They make money on the interest they charge on loans because that interest is higher than the interest they pay on depositors' accounts.
The interest rate a bank charges its borrowers depends on both the number of people who want to borrow and the amount of money the bank has available to lend. As we mentioned in the previous section, the amount available to lend also depends upon the reserve requirement the Federal Reserve Board has set. At the same time, it may also be affected by the funds rate, which is the interest rate that banks charge each other for short-term loans to meet their reserve requirements. Check out How the Fed Works for more on how the Fed influences the economy.

Indian Black money stocked in crores in foreign banks

New Delhi: In relation to the anti-corruption move by India, Names of ten corrupter’s including a Politician and corporate houses were unveiled for the first time in four years on Friday. The committee charged HSBC bank for supporting these money laundering banking transactions with Swiss Banks.
The IAC members daringly exposed that the Ambani brothers and Anu Tandon, congress MP stocked crores of rupees in Swiss banks bank on a list of account holders in HSBC banks operating in Switzerland.  The list that was released by the French government to India revealed no name and the matter is yet to be resolved over court.
Manmohan Singh’s government was also accused of guilty, for not charging on the banks involving in hawala transactions, by the members of IAC as this is a biggest threat for the economic status of the country.
When IAC members, Kejriwal and Prashant Bhushan spoke to the press, they voiced” These banks have made easy for people to open foreign bank accounts from the comforts of the home, they collect money from people’s residence and deposit its equivalent in dollars and Euros with the bank” This may also happen in the case of spreading terror within the country by maundering terrorist money, drug and ransom money, he added.
The activists also demanded to close the bank, and its employees to quit for the interest of the country with immediate arrest of those directly involved with this money laundering issues. Kejriwal also noted that Mukesh Ambani personally visited the ministry to not raid Reliance and he would compensate the deal with money. He also came out with a solution for this economic threat that Indians also enact a law enforcing foreign banks to give a list of Indian Account holder’s names.

Monday, July 30, 2012

Love Poem About You

Your touch is with me always,
It’s burnt into my skin,
As soft and warm as sun rays
When a summer day sets in.

Your soft voice never silent,
It’s forever in my ears,
Serenading every moment
And calming all my fears.

Your arms always enfold me,
The strength of angels wings,
They support and protect me wholly
With the safety a true love brings.

While I can never repay you,
For the wonder you bring to my life,
I can forever be true,
And forever be a true wife.

- Nicola May Tucker -

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Despite the plethora of graphics programs available to the digital photographer Adobe Photoshop still reigns supreme as the program of choice. While Photoshop and its various cousins, such as Adobe Elements, offer practically every imaginable option to digitally manipulate your image files, there is the drawback of a steep learning curve for all these great features.
So, regardless of what version you are using, and unless you're a bona-fide expert with these programs, any help, especially shortcuts and quick tips are always most welcome. 
Is Invisibility Possible?
 The Science Alberta Foundation, a non-profit organization committed to increase science literacy and awareness, has recently launched this outdoor ambient advertisement campaign. The campaign stresses on an interesting, compelling and inquisitive subject of invisibility about which everybody is curious about. The advertisement was placed strategically at the bus shelters. The advertisement has used a poster on an opaque wall of a bus shelter that gives impression of a see through image. The campaign has intelligently drawing attention and giving hope that even this is possible with the development of science. 
The presentation of the campaign is certainly impressive but it certainly remains uncertain that it might have compelled people to think in this regard and persuade them to have a career in Science. In addition, the advertisement was apparently weather sensitive and a slightest change in weather could reduce the effectiveness of the advertisement. The text of the advertisement reads, ‘Is invisibility possible? Invent your future with a career in science.’ The campaign was created by MacLaren McCann, Calgary, Canada.. 
Shining the Light on Great Ideas
Idea Cafe was named by the Wall Street Journal as one of the best all-in-one sites for small business owners. Have you stopped by the cafe for a beverage and a chat?
According to The Journal, "all-in-one web sites catering to small business have popped up like T-shirt peddlers at a rock concert." but WSJ felt only Idea Cafe and six others were worth mention. The Wall Street Journal lauded Idea Cafe in particular for its:
strThisFilePathOnline tools, forms, and how-tos

  •  Distinctive fun and friendly homepage ("if somethat garish")

  • Candid and helpful Coffee Talk With Experts discussions

  • Spirited active CyberSchmooz community, and

  • Overall "friendly and engaging feel."

    The Journal quoted Idea Cafe CEO Francie Ward regarding why Idea Cafe has been so successful in creating its bond with small business. "So many companies trying to reach small business don't have a clue," Ms. Ward says. "That's our language. We know what kinds of problems (small business owners) are dealing with."
  • funy image