Deposit Mobilisation in Banks

Deposit Mobilisation in Banks Deposit mobilisation is one of the crucial functions of a conventional financialinstitutions or banks to satisfy one of the requirements of a banking business, i.e.sourcing of funds or borrowing money from customers.Continuous and adequate deposit mobilisation would ensure the bank shall be able tosustain its business of lending and investing, thus incurring profit for future growth.Nevertheless, different types of deposits have different and distinct characteristics andfeatures which in consequence impose different risks and costs to the banks. Therefore, inmany cases, deposit mobilisation strategy relies heavily to the banks asset and liabilitymanagement policy.In a relationship between bank and depositors, the rights and duties for both parties varyaccording to the nature of deposit mobilisation. The ability of the bank to fulfil their duties is an important measure of the banks acceptance by the public, or by far as acomparison yardstick with other banks. Deposit mobilisation of a bank and its importance a. Introduction Banks mobilise deposits as their primary source of funds. Having optimaldeposits level, banks shall be able to lend the funds to generate interest onlending. In addition to lending, the deposits fund can be placed in certaininvestments avenues which suits the banks or the deposits objectives.Deposit mobilisation is a continuous function for a bank to ensure the sumtotal of deposits at any time adequate to maintain the current level of lending and investments especially to compensate the withdrawals madeby depositors. Usually, the deposits level is kept slightly or certainpercentages above the lending and investments level to ensure the bank has adequate cash reserves to meet expected withdrawals and alsorecurring withdrawals. The cash reserves are called Liquidity Reserves.Deposits bring costs to the banks, either on the maintenance of thedeposits and its transactions or on the interest payout onto the depositsupon deposit maturity.b. How Bank Mobilises Deposits Bank receives deposits from individuals, organisations and businesses,initially by opening an account with the bank itself. Based on the types of deposits, minimum initial deposits are set together with the rules andregulations governing the accounts.Subsequent deposits can be made into the accounts, except for timedeposits where the amount is fixed until deposit maturity.Depositors maintain deposits with specific banks due to many factors, butin particular trust and confidence with the banks are the major factors.Once these are established, the banks continuously attract depositors anddeposits by providing convenience banking, quality services, excellentbrand association and higher interest payout.However, there are instances where depositors put their money into thebanks mainly for security purposes, i.e. the banks to protect their moneyfrom loss and theft and also warrant the deposits from investment loss. Assuch in Malaysia the government provides guarantee upon deposits placedwi th commercial banks. 59 http://htmlimg1.scribdassets.com/4mk9wp2tcwe8wo/images/59-b2561607ca.pnghttp://htmlimg1.scribdassets.com/4mk9wp2tcwe8wo/images/59-b2561607ca.png Banks are competing against each other to attract deposits and newdepositors. Normally interest payout rates, locations and services are themain attractions to the mass market. However, some banks are going intothe niche markets and thus providing specific attractions to the targetedmarket segment. One example is the pensioners group, where specificproducts are developed with special features which suit their lifestyles.Sometimes banks do promotions with door-gifts, lucky draw, establishsavings clubs, staff get customers programme and else to ensure thedepositors base and deposits keep growing and to instil loyalty to thedepositors.Some deposits products have also grown from a single purpose deposits tocombined purpose products to meet higher expectations from customers.For example, attachment of insurance scheme, combination with debitcard, etc.c. The importance of deposits Deposits are the primary source of funds for a bank, which facilitates theuses of funds (loans and investments). The higher the deposits amount, thebigger the lending and investments portfolio can be maintained by thebanks to sustain its expansion and future growth.The banks must have adequate deposits to meet the lending volumerequired by the public and at the same time maintain extra cash for withdrawals by depositors. The cash reserve is a component of liquidityreserves which measure the ability of the bank to meet its expectedwithdrawals and recurring withdrawals. The withdrawals made from thereserves are oddly-offset against new deposits which the banks shouldcontinuously mobilise. The inability to get sufficient deposits could resultin negative fund situation.The level of deposits growth also indicates the banks performance inrelation to customers satisfaction on interest payout and servicesrendered.d. Deposits as key liquidity indicator Deposits are made mainly in cash, the most liquid asset for banks. Oncewithdrawal requests are made by depositors, banks must immediatelyprovide cash for that particular purpose. As compared to other liquiditycomponents such as short term investments which take time to beconverted into cash, it is rather wise for a bank to simply get moredeposits beyond the withdrawal amount. 60 http://htmlimg4.scribdassets.com/4mk9wp2tcwe8wo/images/60-3465843250.png However, the percentage of the cash reserves must be kept at optimumlevel. Idle cash does not create profit, but in fact, brings additional costs interms of storage and insurance. Therefore, by maintaining cash reserves atoptimal level enables bank to generate maximum profits from lending andinvestment activities.The costs for cash reserves are mainly on the storage and insurance. Thestorage of cash reserves involves the requirement for adequate vaultrooms, cash in-transit security and cash handling at branches. Theinsurance costs are to cover the amount of cash available anytime atbranches or in-transit from loss, fire and theft. It generally covers themaximum cash amount allowed at branches or in-transit

Five force model of PIXAR

Threat of new entrants: High Advanced technologies make it difficult for new competitors to enter the market because they have to develop those technologies before effectively competing. The requirement for advanced technologies positively affects PIXAR. The PIXAR has a high level technology development department, so the threat of new competitors is the technology. Threat of substitute products or services: Moderate I consider substitute products to be theater or other forms of entertainment. Internet is also a substitute form of entertainment as the concept of instant messaging was very popular at this time. Also, we can see the beginning of the popular social network Facebook gain traction as it was launched in 2004. Rivalry among existing competitors: High Since there are only a few key players with similar percentage of market share (ranges from 14%-19%), the competition between them is strong. To be more competitive, the growing trend is to consolidate and acquire other studios. For example, Vivendi acquired Universal in 2000, which was then acquired by GE in 2004 and Viacom acquired DreamWorks in 2006. Power of buyers: Moderate I assess this threat to be moderate as there are many potential consumers with limited financial impact on the industry. In addition, the industry is dominated by key players thus is able to limit the options for the buyers. On the contrary, even though there are only a few options, there are effectively zero switching costs for customers. Hence, watching a film by one company does not make it more costly or difficult to then watch a film from a competitor. Power of suppliers: Moderate I assess this threat to be moderate since with technology, hand-drawn animation is being replaced by computer technology. In addition, the needs for these computer animation skills start to be outsourced from North America to Asia Pacific where there are significant lower costs coupled with high quality computer animation production.

Early Puritan Writers Essay

The Puritans who risked their lives, fortunes and futures to start a new life in what was then known as the new world, which is to say the American colonies, brought with them from their native land a desire to start a new life free from religious persecution and full of the faith in God that had brought them through many obstacles to a fresh start. In that search for a new life, Puritans likewise sought moral and spiritual guidance from their leadership. One of the most important ways that this guidance came to be was through the use of the written word. Perhaps no better writers existed during that time than John Smith, William Byrd and William Bradford. In this essay, the writings, beliefs and philosophies of these three men will be presented, universal themes in their works will be discussed, and a conclusion to the paper will bring all of the research into proper prospective. The Works and Philosophies of John Smith Many who study the writings of the early American writers consider John Smith to be not only a highly skilled writer, but likewise what can fairly be called a social, political, and religious commentator of his times. To begin, however, there is a point of clarification that is generally agreed upon, which is the fact that while John Smith was undoubtedly a devout Christian and a man of simple habits and pure living, he was not technically a Puritan by designation, but pure of heart and spirit nonetheless (Hammond, 2000). It would be more precise to categorize Smith as a devotee of the development of the New England colonies upon a foundation of obedience to God as well as the law of man. Before his life in America, Smith was a decorated hero of the English crown, but underwent a change of heart upon realizing that the English lords for whom he had fought so many battles only wanted to enslave the American colonists in a sense. Because of this, Smith soon became a champion of New England’s obedience not to England, but to the word of God. Some of Smith’s best known writings told the story of the struggles of the New England colonists, while still professing the critical role that God plays in the well being of all people, and the importance of piety and faith. Ultimately, this gave Smith a wide audience in the Puritan community and made him one of the most renowned Puritan writers, although he was not technically a member of the sect (Hammond, 2000). Standing in contrast to the piety, serious writing style, and religious obedience of John Smith stands William Byrd, whose writings used a combination of satire and cutting wit to show the difference between the religious and non- religious communities. Writings of William Byrd William Byrd took a drastically different path than Smith in terms of his writing and social commentary; through a blend of satire, humor and parody, Byrd professed that there is a marked difference between the secular and sacred elements of society, and that indeed people could live on either side in harmony. In his book â€Å"The History of the Dividing Line†, Byrd is writing of his explorations of the North American continent and the border between Virginia and North Carolina, but beyond the literal, there lies a great deal of content, philosophy and wisdom. Indirectly, Byrd metaphorically makes a distinction between a life that is defined by obedience to God and one that is guided more by a type of common sense to differentiate between right and wrong and the importance of the decisions and choices on makes in their life (Hammond, 2000). In this book, Byrd discusses the vast wilderness, which is to say the unknown territory that the early Americans must explore and learn how to inhabit if they are to enjoy everything that life has to offer. On a more philosophical level, however, this wilderness is shown as the unknown areas of evil that the human mind can create and explore if the will of the individual is to turn away from God and be disobedient. Also, on a philosophical level, Byrd draws a parallel between the pure and fresh land that the early American settlers have been given, as a sort of gift from God, and the other pure blessings that God provides. In either case, it is up to the individual to embrace and enjoy them, or squander and destroy them. Seemingly bridging the gap between the sacred of Smith and secular of Byrd is William Bradford, the leader of the Pilgrim settlers of the Plymouth Colony of New England, the second Governor of the colony, and generally recognized as the founder of the first Thanksgiving feast. William Bradford’s Body of Literature As was stated in the previous section of this paper, William Bradford can fairly be seen as the midway point between the secular and sacred writers, incorporating both in combination in his writings. His best known work, â€Å"History of Plymouth Plantation†, shows evidence of this belief system, which also projected into his leadership of the colony. Bradford firmly believed that it was the grace of God which brought the colonists to a new life in the Plymouth colony, and it was this same grace which helped them to survive their first brutal winter, when many of their citizens perished due to the harsh conditions. Also, however, Bradford believed that the efforts of the individual were essential to survival (Hammond, 2000), in a sort of thinking that goes by the old adage that God helps those who help themselves. Giving God due praise and worship for blessings, Bradford also put forth the philosophy that the work of humans was needed to nourish the body as God was needed to nourish the soul. Bradford has been acknowledged as the father of the concept of industry in America to produce needed goods and provide a livelihood for people. Perhaps Bradford developed a respect for those who were not particularly devoted to the church but were guided by a will to survive when these people, known at that time as â€Å"Strangers†, made the passage to New England along with the devout Pilgrims, demonstrating that what they lacked in piety they more than made up for in determination to succeed. This experience, it is fair to say, may have influenced Bradford to write in a style that acknowledges the importance of God, but also recognizes the value of the individual aside from their soul. Conclusion This paper has presented information about three early Puritan writers who used varying degrees of faith and philosophy, secular and sacred, to create historical writings that are still being discussed, and are highly respected, centuries after their creation. These works stand as an ultimate monument to the men, their times and belief systems. In retrospect, these early Puritan writers would surely be pleased with this outcome. References Hammond, J. A. (2000). The American Puritan Elegy: A Literary and Cultural Study. Cambridge, England: Cambridge University Press.

How Do We Protect Ourselves From Them - 1138 Words

Imagine a world with full of Artificial Intelligence, in a form of a robot. It is a thought that most people can dream of. Eventually it won t be an imagination anymore but a goal that most people will try to accomplish. As years progress in life, our technology gets better and better. We play as â€Å"god† as we experiment with the theories of AI’s. Having an AI in our world can have its disadvantage. For example, an AI can feel and think like a human on its own. By this, I mean that an AI can have real emotions and can be able manipulate them. It can also make good and bad decision. Not only is that a concern for everyone, but they can actually look like use and be mistaken for a real human. Another concern is that they might overpopulate†¦show more content†¦2) AI will have certain restrictions. A coding that will prevent them from disobeying their original coding. 3) AI should only help and guide those who need help and will be marked as a robot. 4) Any industry making an AI must be approved in a legal procedure and numbered of test they must go through. 5) Every AI will shut down immediately if it manipulates 100% of human behavior, emotions or consciousness. Each of this law will maintain an order on society where there would not be any problems with AI and humans. We will be in control of the robots. The laws will be set in order to keep AI from reaching its full potential. Rule number 1,3,4 and 5 is mentioned because it relates to the movie Ex-Machina. In the film, Ex-Machina, Caleb is chosen to evaluate Ava through a Turing test. According to Caleb: â€Å"A Turing test is when a human interacts with a computer and if the human doesn t know they re interacting with a computer, the test is passed. And what does a pass tell us? That the computer has artificial intelligence.† This movie breaks few of the laws that I mentioned because there is no boundary or limitation. Anything could happen during the evaluation of the test because there are no certain rules whether if it is too much of a human and there is only one test they have to pass. Ava will be in control of the test and have the better outcome of what will happen next (rul e number 3 and 4). Another example is when Ava (AI) warns