personal finance forum

ByAdrianna Noton

Understanding is easy. It is in part a question of time management. Traditionally people have struggled through traffic and other city hazards to queue during office hours. The time actually spent transaction business might be less that a minute or a few minutes but getting to the consultant sitting behind a desk could take hours.

By contrast the page of one's computer or smart phone can be accessed in the course of a few seconds and the necessary transaction completed in the time that would be taken to walk into a building and join a queue. Time during the working day does not have to be set aside for traveling and standing because transaction can be done at any time of the day or night, when convenient.

Firms have different corporate approaches to their customers. Some treat clients as nuisances and others do their best to offer professional services. Similarly, some sites are very much more friendly and helpful than others. It is wise to investigate before registering.

It is necessary to create a profile with a particular firm before commencing. This can be a sticking point for those who do not belong to the generation of people used to transacting exclusively with computer systems and no human interaction so some time might be invested in a consultant behind a desk or at a telephone number. The profile can include several accounts of different types and almost all business on these accounts may be economically accomplished without setting a foot inside a building.

Credit card accounts are usually run through specialist companies but banks act as agents for these companies. Credit card accounts can be included on the profile of customers who run their accounts through the bank that acts as an agent to the particular card company. There may be some restriction on how funds are withdrawn but usually it is possible to transfer funds into them instantaneously.

The prevalence of online banking has streamlined business for both debtors and creditors. Accounts may be paid directly into relevant accounts and funds may also be received economically and quickly into accounts. In some cases banks offer special services such as accepting international payments through money transfer companies and even paying traffic fines online. It is possible to pay recurring monthly accounts by means of scheduled payments on particular dates.

Many people who are reluctant to move away from traditional banking are motivated by fear. They are afraid that their personal information may somehow be available to others and that there could easily be fraudulent activity of which they are unaware. The need to be assured that the same accounting and banking practices operate as they have done traditionally. The difference is that particular clients have access to their personal information just as bank officials always have had.

To know how online banking works is to know that the same banking practices apply to accounts as has traditionally been the case. The difference is that clients now have access to their personal information and can complete personal transactions. The fact that this information can be checked frequently and for no cost means that a greater degree of personal vigilance is possible, making banking even safer than it was before.

Global Financial institution offering commercial and personal banking services including Internet banking, credit card, loans and more at BVI bank.

Article Source:http://EzineArticles.com/?expert

A traditional banking model in a CEEC (Central and Eastern European Country) consisted of a central bank and several purpose banks, one dealing with individuals' savings and other banking needs, and another focusing on foreign financial activities, etc. The central bank provided most of the commercial banking needs of enterprises in addition to other functions. During the late 1980s, the CEECs modified this earlier structure by taking all the commercial banking activities of the central bank and transferring them to new commercial banks. In most countries the new banks were set up along industry lines, although in Poland a regional approach has been adopted.

On the whole, these new stale-owned commercial banks controlled the bulk of financial transactions, although a few 'de novo banks' were allowed in Hungary and Poland. Simply transferring existing loans from the central bank to the new state-owned commercial banks had its problems, since it involved transferring both 'good' and 'bad' assets. Moreover, each bank's portfolio was restricted to the enterprise and industry assigned to them and they were not allowed to deal with other enterprises outside their remit.

As the central banks would always 'bale out' troubled state enterprises, these commercial banks cannot play the same role as commercial banks in the West. CEEC commercial banks cannot foreclose on a debt. If a firm did not wish to pay, the state-owned enterprise would, historically, receive further finance to cover its difficulties, it was a very rare occurrence for a bank to bring about the bankruptcy of a firm. In other words, state-owned enterprises were not allowed to go bankrupt, primarily because it would have affected the commercial banks, balance sheets, but more importantly, the rise in unemployment that would follow might have had high political costs.

What was needed was for commercial banks to have their balance sheets 'cleaned up', perhaps by the government purchasing their bad loans with long-term bonds. Adopting Western accounting procedures might also benefit the new commercial banks.

This picture of state-controlled commercial banks has begun to change during the mid to late 1990s as the CEECs began to appreciate that the move towards market-based economies required a vibrant commercial banking sector. There are still a number of issues lo be addressed in this sector, however. For example, in the Czech Republic the government has promised to privatize the banking sector beginning in 1998. Currently the banking sector suffers from a number of weaknesses. A number of the smaller hanks appear to be facing difficulties as money market competition picks up, highlighting their tinder-capitalization and the greater amount of higher-risk business in which they are involved. There have also been issues concerning banking sector regulation and the control mechanisms that are available. This has resulted in the government's proposal for an independent securities commission to regulate capital markets.

The privatization package for the Czech Republic's four largest banks, which currently control about 60 percent of the sector's assets, will also allow foreign banks into a highly developed market where their influence has been marginal until now. It is anticipated that each of the four banks will be sold to a single bidder in an attempt to create a regional hub of a foreign bank's network. One problem with all four banks is that inspection of their balance sheets may throw up problems which could reduce the size of any bid. All four banks have at least 20 percent of their loans as classified, where no interest has been paid for 30 days or more. Banks could make provisions to reduce these loans by collateral held against them, but in some cases the loans exceed the collateral. Moreover, getting an accurate picture of the value of the collateral is difficult since bankruptcy legislation is ineffective. The ability to write off these bad debts was not permitted until 1996, but even if this route is taken then this will eat into the banks' assets, leaving them very close to the lower limit of 8 percent capital adequacy ratio. In addition, the 'commercial' banks have been influenced by the action of the national bank, which in early 1997 caused bond prices to fall, leading to a fall in the commercial banks' bond portfolios. Thus the banking sector in the Czech Republic still has a long way to go.

In Hungary the privatization of the banking sector is almost complete. However, a state rescue package had to be agreed at the beginning of 1997 for the second-largest state bank, Postabank, owned indirectly by the main social security bodies and the post office, and this indicates the fragility of this sector. Outside of the difficulties experienced with Postabank, the Hungarian banking system has been transformed. The rapid move towards privatization resulted from the problems experienced by the state-owned banks, which the government bad to bail out, costing it around 7 percent of GDP. At that stage it was possible that the banking system could collapse and government funding, although saving the banks, did not solve the problems of corporate governance or moral hazard. Thus the privatization process was started in earnest. Magyar Kulkereskedelmi Bank (MKB) was sold to Bayerische Landesbank and the EBDR in 1994, Budapest Bank was bought by GE Capital and Magyar Hitel Bank was bought by ABN-AMRO. In November 1997 the state completed the last stage of the sale of the state savings bank (OTP), Hungary's largest bank. The state, which dominated the banking system three years ago, now only retains a majority stake in two specialist banks, the Hungarian Development Bank and Eximbank.

The move towards, and success of privatization can be seen in the balance sheets of the banks, which showed an increase in post-tax profits of 45 percent in 1996. These banks are also seeing higher savings and deposits and a strong rise in demand for corporate and retail lending. In addition, the growth in competition in the banking sector has led to a narrowing of the spreads between lending and deposit rates, and the further knock-on effect of mergers and small-hank closures. Over 50 percent of Hungarian bank assets are controlled by foreign-owned banks, and this has led to Hungarian banks offering services similar to those expected in many Western European countries. Most of the foreign-owned but mainly Hungarian-managed banks were recapitalized after their acquisition and they have spent heavily on staff training and new information technology systems. From 1998, foreign banks will be free to open branches in Hungary, thus opening up the domestic banking market to full competition.

As a whole, the CEECs have come a long way since the early 1990s in dealing with their banking problems. For some countries the process of privatization still has a long way to go but others such as Hungary have moved quickly along the process of transforming their banking systems in readiness for their entry into the EU.

Arfan Ul Haq is an Asian author. He writes articles about business, economics, banking and finance such as business and managerial economics and theories of under development

Asian financial centers like Hong Kong are experiencing an increase in wealthy individuals seeking asset protection. The growth of investment here outpaces the global average for wealth growth.

In 1997 the British returned Hong Kong to China. The city became one of China's two Special Administrative Regions. Many foreign investors were initially fearful of the impact of the city now being run by a communist power, and some investors pulled their investments out of their local accounts.

However, the governing model adopted by Beijing has proven very successful. The model provides this unique city with a high degree of autonomy in all matters except foreign relations and defense allowing Hong Kong to use its financial expertise to expand commerce between East and West.

Today international investors and businesses are returning to this city in part because of the Chinese connection. H.K. has become the point of access to Chinese trade for many international businesses without the legal and cultural obstacles of operating a business inside mainland China.

Many individual investors and businesses are choosing to open offshore bank accounts in Asia because these economies are anticipated to continue to grow despite the current global recession, as well as the greater account holder privacy the Asian jurisdictions offer. Investors and businesses see the stable economy and privacy protections as a strategy for minimizing business risks.

Other Advantages of Banking in Hong Kong:

Many offshore accounts are opened as Hong Kong corporate accounts, as opposed to individual accounts. Hong Kong corporations can be structured with nominee shareholders and can appoint a resident as the corporate secretary protecting the privacy of the beneficial owners of the company.
The increased sophistication of online banking services have made offshore accounts convenient and efficient. Bank accounts opened in H.K. offer the advantage of being multi currency, allowing account holders to exchange investments between currencies quickly and freely online.
The relatively low minimum deposits required by most Hong Kong banks to open an account also makes this an attractive option. Of course if you want to open an account with all the private banking services higher minimum deposits are required.
The policy of levying no capital gains tax, no tax on bank interest or stock market investments, and no tax on offshore sourced income makes the city a good choice for an offshore account.
The ease of opening an offshore bank account with a local bank makes it an attractive option for many. If you are in Hong Kong and have the proper documentation an account can often be opened in one day.
It is also possible to open accounts without visiting Hong Kong however this will take a little longer. It is possible to open a Hong Kong account with an international bank at a branch office in your home country or if you are using a professional service they will arrange to have the necessary documents emailed to you.

The Q Wealth Report is a quarterly journal that has been advising free thinking individuals for over a decade about offshore banking. To learn more about multi-currency banking in Hong Kong visit us.

Asian financial centers like Hong Kong are experiencing an increase in wealthy individuals seeking asset protection. The growth of investment here outpaces the global average for wealth growth.

In 1997 the British returned Hong Kong to China. The city became one of China's two Special Administrative Regions. Many foreign investors were initially fearful of the impact of the city now being run by a communist power, and some investors pulled their investments out of their local accounts.

However, the governing model adopted by Beijing has proven very successful. The model provides this unique city with a high degree of autonomy in all matters except foreign relations and defense allowing Hong Kong to use its financial expertise to expand commerce between East and West.

Today international investors and businesses are returning to this city in part because of the Chinese connection. H.K. has become the point of access to Chinese trade for many international businesses without the legal and cultural obstacles of operating a business inside mainland China.

Many individual investors and businesses are choosing to open offshore bank accounts in Asia because these economies are anticipated to continue to grow despite the current global recession, as well as the greater account holder privacy the Asian jurisdictions offer. Investors and businesses see the stable economy and privacy protections as a strategy for minimizing business risks.

Other Advantages of Banking in Hong Kong:

Many offshore accounts are opened as Hong Kong corporate accounts, as opposed to individual accounts. Hong Kong corporations can be structured with nominee shareholders and can appoint a resident as the corporate secretary protecting the privacy of the beneficial owners of the company.
The increased sophistication of online banking services have made offshore accounts convenient and efficient. Bank accounts opened in H.K. offer the advantage of being multi currency, allowing account holders to exchange investments between currencies quickly and freely online.
The relatively low minimum deposits required by most Hong Kong banks to open an account also makes this an attractive option. Of course if you want to open an account with all the private banking services higher minimum deposits are required.
The policy of levying no capital gains tax, no tax on bank interest or stock market investments, and no tax on offshore sourced income makes the city a good choice for an offshore account.
The ease of opening an offshore bank account with a local bank makes it an attractive option for many. If you are in Hong Kong and have the proper documentation an account can often be opened in one day.
It is also possible to open accounts without visiting Hong Kong however this will take a little longer. It is possible to open a Hong Kong account with an international bank at a branch office in your home country or if you are using a professional service they will arrange to have the necessary documents emailed to you.

The Q Wealth Report is a quarterly journal that has been advising free thinking individuals for over a decade about offshore banking. To learn more about multi-currency banking in Hong Kong visit us.

In 2001, the U.S. Federal Reserve and Banco de México embarked on a study of how to link the neighboring countries' payment systems by creating an inter-bank mechanism available to all financial institutions in the United States and Mexico. The resulting platform was introduced in 2003 as FedACH International Mexico Service. In 2005, the Fed began marketing the service known as Directo a México to U.S. financial institutions.

Directo a México allows U.S. financial institutions to provide a fast, cheap and secure account-to-account or account-to-cash money transfer service from the U.S. to Mexico. The individual sending money must hold an account at a participating bank or credit union in the United States. The recipient in Mexico may receive payment either in a bank account or as cash at any TELECOMM-TELÉGRAFOS branch. When the program was initiated, the beneficiary in Mexico was also required to hold a bank account.

Directo a México's website outlines the advantages of using its service to send money from the U.S. to Mexico. The average cost to send $350 via a traditional money transfer company is $10 plus a $6.50 foreign exchange fee. To transfer the same amount via Directo a México, the sender pays an average cost of $3 plus a foreign exchange fee of $0.70, an average total savings of $12.80. A transfer of more than $2000 will carry the same transfer costs at one of the best foreign exchange rates. Directo a México estimates savings of $82 in fees for a transfer greater than $2000. In addition to cost advantage, the service provides next business day delivery of funds, fee certainty, transparency and security.

One of the Fed's chief objectives when developing a cross-border payments system was to enable banks and credit unions to market Directo a México as an entry product to unbanked Mexicans in the U.S. In other words, traditional financial institutions could target potential customers by offering them a cost-effective remittance product, then convert them to banking customers.

This approach has seen limited success. Although many U.S. banks and credit unions now offer Directo a México, the program has not been able to wrestle market share from the leading money transfer companies. Similarly, Bank of America introduced a remittance service, SafeSend, with the intention of attracting underserved Latinos and converting them to retail customers. This too was not very successful.

The inability of Directo a México to significantly penetrate the U.S.-to-Mexico remittances market underscores the difficulty of bringing unbanked Hispanics into the conventional banking system. Yes, remittances are driven by convenience and the traditional money transfer companies continue to offer the most convenient service. But most unbanked and underbanked Hispanics distrust banks and fear giving up anonymity for the limited benefits of being a low-income banking customer.

Directo a México is a great service. It's a shame that more senders of money to Mexico do not use the central banks' system. The program's inability to impact the unbanked problem in our country indicates that a more comprehensive approach is needed. In addition to leading with services like cash checking and remittance service, banks must align with relevant community organizations and teach financial literacy. Community-based, culturally-sensitive education is the most effective way to bring the unbanked into the banking system.