Summarize a Financial management article Example | Topics and Well Written Essays - 750 words

Summarize a Financial management - Article Example Moreover, these strategies are examined for ensuring compliance with the financial and regulatory requirements and policies of the banks. The article provides a background to the development of financial markets in the developing countries like Turkey and how the turmoil in these emerging financial markets can affect the global financial scenario. During crisis situation in the economy the role of banks is pivotal as they are considered to be the pillars of any financial system. Therefore, it is suggested in this article that banks need to adopt only those strategies that could lower their risks and improve the control over the financial position of banks in order to reduce the implications on both domestic and international financial setups. The role of asset liability management (ALM) in strategic planning of banks is highlighted in this article suggesting that the aim of such model in banks allows them to efficient manage their funds keeping their risk profiles to lowest levels and to maximize their earnings. The model is considered to be multidimensional which requires simultaneous interaction between different elements of operations in a bank, which requires high level of integration at various levels. Banks have now adopted sophisticated models of ALM; however, the outcome of ALM still depends upon the diverse management strategies followed by banks. The importance of ALM is viewed in this article from the perspective of Turkish banks that faced major financial crisis situation in the Turkish banking industry in late 2000 and early 2001. The reasons highlighted for these financial crises included poor overall macroeconomic conditions in the country and poor regulatory framework to control and manage the activity that was taking place in the Turkish banking sector. The article presents important relevant financial ratios of banks during pre- and during financial crisis periods, which

Write if you agree or disagree and why Essay Example | Topics and Well Written Essays - 750 words

Write if you agree or disagree and why - Essay Example It may seem that companies are reluctant to raise wages because they are trying to protect their interests. However, when one looks at the matter critically, one will discover that an increase in the minimum wage has adverse impacts on the workers. Employers will increase the wages of their workers through increasing the prices of the goods they sell. For example, a retail shop will increase the prices of their goods, which are necessities, to cater for the government’s requirement. The changes in the consumer goods will fall hard on the individuals living below the poverty level because they will have to pay more for such goods (Macurdy n.pag). The government will have increased their purchasing power but also caused them to spend more on their consumptions. They do not benefit because the extra money they have earned goes straight to the profits of their employers. They might have to spend more because the minimal wage bill affects various sphere of the economy. Companies do not only hike prices to meet their profit objectives. They may also lay off workers. The low earners will be forced to look for jobs elsewhere (Macurdy n.pag). This increases in the burden of social workers who have to provide benefits for the unemployed. The law will increase the rate of unemployment, a state that brings with its problems. Employees will have to lose the salary that has helped them survive in the severe economy. The workers who will be retained will be forced to do a lot more for a marginal increase in their salaries. The retrenched workers will have left a gap that can only be filled with the remaining workers. They will be willing to take up the extra work because they will be too grateful to have retained their jobs. However, they will be under strenuous conditions that will reduce their job satisfaction. An increase in salaries will cause the low-income earner lose out on social benefits such as food stamps and subsidised housing charges. A