Global Financial Development Report By The World Bank Essay

This study tries to examine the relationship between financial development and income inequality by exploring a large cross-country sample for the period 1992-2001. The results show some support for the inequality-narrowing hypothesis. In contrast, the results reject the inequality-widening hypothesis. And the panel data regression provides some weak support for the inverted U-shaped hypothesis.

1. Explain why an individual investor might want to invest in an international growth fund?

The Global Financial Crisis, also known as The Great Recession, broke out in the United States of America in the middle of 2007 and continued on until 2008. There were many factors that contributed to the cause of The Global Financial Crisis and many effects that emerged, because the impact it had on the financial system. The Global Financial Crisis started because of house market crash in 2007. There were many factors that contributed to the housing market crash in 2007. These factors included: subprime mortgages, the housing bubble, and government policies and regulations. The factors were a result of poor financial investments and high risk gambling, which slumped down interest rates and price of many assets. Government policies and regulations were made in order to attempt to solve the crises that emerged; instead the government policies made backfired and escalated the problem even further.

1. The global financial crisis did not reduce my income, but I think that if I did see reduced income, I would either cut back on discretionary purchases or I would buy cheaper brands. Certainly with things that I have to buy, like food or toiletries, cheaper brands are usually purchased. This contrasts with products that are completely discretionary, where my consumption might be severely curtailed or cut back entirely. The reason for this is simple. When there is less money to go around, and there is a decreased optimism about future income, one must align purchases with the financial situation. Using debt to maintain spending levels is a bad idea when there is an economic crisis that reduces one's expectation of future income. Thus my own spending habits do change when my income levels go up or down, and the same is true for most people, so that in an economic crisis more people are reducing their spending than are increasing it.

Approximately 2 billion working adults, especially in developing countries, do not have access to a safe account at a financial institution. Moreover, according to the World Bank, more than 59 percent of working adults do not have access to an account simply as a result of low income, implying that these financial institutions are not yet attainable for low income users. Being one of the least developed countries, Rwanda has a population with about 89 percent of its adults owning a financial account under formal and mainly informal sectors in 2012. According to the FinScope Survey, Rwanda is one of the leading countries in East Africa with the highest accessibility to financial inclusion despite having a poverty rate of 33 percent in

In 2008, the world experienced a tremendous financial crisis which is rooted from the U.S housing market. Moreover, it is considered by many economists as one of the worst recessions since the Great Depression in 1930s. After bringing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It ruined economies, crumble financial corporations and impoverished individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brothers and AIG. These collapses not only influenced own countries but also international scale. Hence, the intervention of governments by changing and expanding the monetary

In September and October 2008, the US suffered a severe financial dislocation that saw a number of large financial institutions collapse. Although this shock was of particular note, it is best understood as the culmination of a credit crunch that had begun in the summer of 2006 and continued into 2007. The US housing market is seen by many as the root cause of the financial crisis. Since the late 1990s, house prices grew rapidly in response to a number of contributing factors including persistently low interest rates, over-generous lending and speculation. The bursting of the housing bubble, in addition to simultaneous crashes in other asset bubbles, triggered the credit crisis.

In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and expanding the monetary and fiscal policy or giving bailout is needed in order to eliminate and control enormous effects of the financial crisis.

In contrast to the barter economy, the financial sector sits between savers and borrowers: taking funds from depositors and making loans to borrowers, linking together households, companies, and governments. As such, financial sector could allocate the surplus funds in the society to their most efficient use in the needed areas (Diamond, 1984). For example, the credit provision to SMEs fuels real business to invest in new buildings and machineries to foster their growth. In this way, financial sector benefits the nation by expanding the whole society’s productive capacity, then improving people’s living standards eventually. Third, a well-run financial system facilitates the management and allocation of certain risks (Baily & Elliott, 2013). Financial intermediaries have

The recent turmoil in the global financial market has given rise to an argument on what policy measure or controls should be imposed to curb excess stock price volatility. One such restrictions were placed on short selling to reduce speculative trading.The aim of the present paper is to consider the impact of the measures placed on short selling following the 2008 global financial crisis. This report assesses the success of the interim measures in achieving these objectives, and also considers the impact the interim measures had on the market, participants in the market and other stakeholders

It is commonly argued that the lack of access to capital and financial services functions as a major barrier to attaining and sustaining adequate levels of socio-economic development for numerous communities and households across the world. According to the Global Financial Development Report (2014) by the World Bank, about two billion or 38% of adults in the world do not use formal financial services. This pandemic is even more alarming when contextualized further. Close to 73% of poor people remain unbanked, more than half of adults in the poorest 40% of households in developing countries, and about 80% of the poor living under the $2/day poverty line have no form of bank account due to a plateau of reasons ranging from costs, travel distances, and other burdensome requirements involved in opening financial accounts. To combat this undesirable phenomenon, the overwhelming majority of policy makers, donors, investors, academics, and practitioners enthusiastically welcomed the emergence of microfinance and promoted it as an inclusive, pro-poor, and sustainable form of finance. An alternative to mainstream finance, capable of reaching the most capital deprived enterprises, households, and individuals.

The World Bank Group has set two goals for the world to achieve by 2030: To end extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3% and to promote shared prosperity by fostering the income growth of the bottom 40% for every country, which the organization is trying to achieve via low-interest loans, zero to low-interest credits, and grants to developing countries (“What We Do,” n.d.). The World Bank’s moto is “Working for a World Free of Poverty” with the caveat of “do no harm”’; however, what is left in their wake in many cases is heartbreak and devastation. My task with this paper is to address a project of the World Bank in Nigeria that created problems for the nation, and especially the people therein, that received its assistance.

The author reviewed the economic advantages of financial integration. In fact, there are some economic benefits that financial integration can bring. It can be said that greater financial integration in Asia can induce more rivalry and deliver financial access to underserved households and firms thus

Banks also play an integral role in society, affecting not only spending by individual consumers, but also the growth of entire industries. A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses. Banking means engaging in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit etc.

“FINANCIAL INCLUSION [PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY)] WITH REFERENCE TO JAMMU AND KASHMIR BANK LIMITED SRINAGAR”