Globalised Financial System and Its Impact on Indian Business

A Central Bank is a supreme bank in a country which supervises all the economic life of the nation. As the definition states “Autonomous or semi-autonomous organization entrusted by a government to, administer certain key monetary functions”, these banks have a wide range of activities, such as; implementing specific goals such as currency stability, low inflation rates and full employment. Central banks acts as the banker of the government helping in regulating monetary and financial stability, and developing stable payment system. The first central bank was found in the world was the Swedish Riksbank, founded in 1668. Second bank was Bank of England found in 1964, by William Paterson to finance a war. They became a vital part of the world today.

Reserve Bank of Australia (RBA) is the central bank of Australia. RBA was formed in 1959 to replace Commonwealth Bank of Australia. Commonwealth Bank was set up by the Federal Government in 1911. RBA is responsible to take over central banking roles that previously taken care by Commonwealth Bank. After the take over, RBA keep improving their banking system and provide different banking services. The role of RBA is to perform the monetary policy in order to preserve a strong financial system and subject to the Australian Dollar’s currency.

The main concept of the article is to explain why the New International Financial Architecture (NIFA) was created and who is being benefited from this approach. The discussion begins with an examination of the power structures of the global political economy by focusing on the continued dominance of the USA. The article presents the contradictory relations between USA and global finance will be explored so as to shed more critical light on the NIFA. This article critically examines the NIFA by linking its institutional components to the larger contradictions of the capitalist inter-state system. A contradiction is the constant promotion of financial liberalization in emerging

21. Banerjee Amalesh and Singh S.K. (2002), Banking and Financial Sector Reforms in India, Deep and Deep Publications Pvt. Ltd., New Delhi-p.265 (Report of K. Madahav Rao Committee (1979)

Financial globalization alludes to expanding monetary association of national economies over the world through a fast increment in cross-outskirt development of merchandise, administrations, innovation and capital. Multinational organizations assume a key part in this procedure. The individuals who

The significance of financial sector in an advanced economy implies that it is fundamental for financial development to provide support for a focused and strong money related framework that is free from citizen support and is coordinated globally. The CBI 's exceptional cross-segment voice talks for the clients of

They claim that international capital mobility, or, the ability of investors to freely allocate capital around the globe, engenders promise, while simultaneously entailing peril. This paper will attempt to address the arguments of both sides to foster greater comprehension.

Financial globalisation is the cross-boarder financial flow through global linkages, which has become relevant in terms of emerging markets as they incorporate financially with the rest of the world. There are many central factors affecting financial integration namely; Trade openness, domestic financial development, economic development, country size, capital account restrictions, EU integration & financial centres. The benefits of globalisation essentially arises from peoples standard of living in countries around the world.

Our world is steadily shrinking. Technology is building bridges over the barriers of distance, language, and culture. It’s a process called globalization, and it is changing the way we live. Financial institutions haven’t been immune to the effects of this change. In fact, the international nature of financial institutions makes them particularly vulnerable to change. This paper addresses three issues caused by the globalization of the international monetary community.

The Reserve Bank of New Zealand was established in 1934. It has been totally controlled by the government of New Zealand since 1936 even though it’s not a government department. The Reserve Bank’s main function is to operate monetary policy to maintain price stability. Monetary policy states an action of a central bank which determines the size and rate of growth of the money supply.

The Global financial sector had seen one of the worst Global economic meltdown of staggering proportions. The root cause of the problem was substandard loans offered to a large number of customers with inadequate income by the United States Mortgage market. This crisis was commonly known as the Sub-prime crisis. These sub-prime mortgages were packaged and traded into securitized paper investments and were sold by the major financial institutions across the globe. Subsequently, these investments became non performing assets and infected the worldwide financial markets sparing not even the biggest and established financial firms. Globalization in the early 20th century ensured that the Indian economy and the financial markets

Financial systems and financial regulators are entities setup by the government of a country to ensure the availability and flow of financial resources in a fair and lawful manner without exploitation or monopolization of the resource by individuals or organizations. The task of ensuring the availability of finance and its transference is taken up by the financial systems of a country while the task of monitoring and regulating is taken up by the financial regulator.

The Central Bank is the utmost authority that is employed by the government to formulate monetary policy to guide the economy of a country. Monetary policy is defined as the regulation of the money supply and interest rates by a central bank. Monetary policy also refers to how the central bank use the interest rates and the money supply to guide economic growth and control inflation and stabilizing currency. Central bank is one kind of bank that operates in the financial system. Bank is a financial institution that provides service that is related to money. It works as a financial intermediary. The banking system of a country is highly regulated by the government. The government changes its level of control over the banks over the time to meet the need of the ever changing world. Bank operates in the service industry in which relationship with customers is very important. Bank is considered as an iron cell of a body. A financial system cannot work without the existence of the bank. The main earning of a bank is interest. Bank gives lower interest on deposit and take high interest rate on loan. This is how bank make money. Bank is mainly of three kinds.1) retail banks 2) investment bank 3) central bank. Central bank is highest financial institution of a country. It controls money market, currency system of the country. Central bank also regulates the

Reserve Bank of India, the Central Bank of the country, is at the center of the Indian Financial and Monetary system. RBI is among the oldest among the developing countries . It was inaugurated on April 1, 1935 as a private shareholders ' institution under the Reserve Bank of India Act 1934. It was nationalized in January 1949, under the Reserve Bank (Transfer to Public Ownership) of India Act, 1948

India has a federal form of government, and hence a federal finance system. The essence of federal form of government is that the Centre and the State Governments should be independent of each other in their respective, constitutionally demarcated spheres of Action. Once the fundamentals of the government are spelt out, it becomes equally important that each of the government should be provided with sources of raising adequate revenues to discharge the functions entrusted to it. For the successful operation of the federal form of government financial independence and adequacy for the backbone.