Finance Essay Example | Topics and Well Written Essays - 1000 words

Finance - Essay Example The government also gives a further indication for implementation of the recommendations. Hence, detailed explanation has been done in this paper to explain the rationale behind two of the recommendations of Vickers report. Retail Ring-Fencing One of the most controversial recommendations of the Vickers Commission is that the banks’ retail operations should be ring-fenced. Banks will be required to establish a separate legal entity within their corporate structure to provide retail and commercial banking services all over the country. The reason behind this to protect retail banking operations from risk-oriented financial activities and to ensure the continuous provision of retail banking services by ring-fenced banks, with reduced bail-out costs for taxpayers. The government agreed with Vickers Commission that banks should have relative freedom in respect of their investment. Banks will be permitted to continue copyrighted trading. The logic is that investment of UK banks sho uld operate without an implicit government guarantee and be allowed to fail in an orderly manner in case they enter into financial crisis. It is also predicted that the banks in UK will face challenges in implementing ring-fencing requirements, given their current corporate structures. ... The large exposure limits that are recommended in the report are designed to reduce the exposure a ring-fenced bank will have to other entities within its group. However, allowing secured exposure up to 45% of capital may prove unproductive in light of the write-downs of sovereign and asset-backed debts in the financial drawbacks (Kevin, 2007). Raise bank capital requirements The Vickers Commission has separately made various recommendations intended to raise the capital requirements of the banks in United Kingdom. It is also an attempt to increase the ability of banks to absorb losses or any other financial crisis. The ratio of equity to RWAs proposed by the Vickers Report for ring-fenced banks (of 10%) is higher than that proposed in Basel. The requirement for banks to have loss absorbing capacity of 17% is essentially more burdensome than under Basel III (Patrick, 2011). Therefore important banks will be required to hold capital at 11.5-13% of RWAs (Michael & Bernard, 2007). The g overnment of UK agreed that 17% is the appropriate number for large institutions, subject to further consultation. Moreover, accommodative tax regime will be required subjected to capital instruments subordinated debt for banks so that they could use these instruments to meet their enhanced capital ratios. HMRC is currently looking at ways to ensure these instruments work effectively and therefore reduce tax on interest payments. An important concession has been made by the government to UK-based multinational banks. The Vickers Report had proposed that such banks were required to have primary loss absorbing capital equal to 17% across all their operations. However, the government has stated that as long

How does McDonald's alter its marketing mix between countries a case Essay

How does McDonald's alter its marketing mix between countries a case study of UK and China - Essay Example erm – the performance of marketing strategies is usually depended on the resources available – funds, employees and technology (Luo et al., 2005, 50); however, it is also depended on the cultural and social characteristics and ethics of the targeted market. Through the decades it has been proved that no all firms are able to work internationally; in fact, only those firms that have been able to align their strategies with the ethics and the culture of the targeted market have managed to survive in the specific market – entering a foreign market is not the most difficult part of a relevant marketing scheme (Palich et al., 111999, 587). Another issue is the fact that firms that have been established in countries with totally different social ethics and traditions are less likely to understand – at least on time – the psychology and the needs of consumers in a market with particular culture and ethics (Nakata et al., 2001, 255). Organizational culture is proved at this case to have a decisive role in the ability of a firm to develop the strategies that will be effectively implemented in the targeted market (Armstrong et al., 2009, 34); in this context, marketing schemes that are going to be used for the promotion of p roducts/ services in a foreign market will be going to be successful only if they respond to the characteristics and the needs of local people (Hennig et al., 2002, 230); otherwise they will soon be led to a failure. Current paper focuses on the examination of the ways that McDonalds has altered its marketing mix in order to respond to the needs of two different markets: the British and the Chinese. The identification and the evaluation of the relevant policies is based on two different criteria: the views that have been published in the literature – in relation with the study’s main issue – and the views of consumers in the above two countries. In this context, a detailed literature review has been developed in regard to the structure

Literature Essay Example | Topics and Well Written Essays - 1250 words - 8

Literature - Essay Example However, reader’s expectations are not confirmed. Chaucer merely uses the features of the genres to communicate the messages of his own, to establish the themes and motives he is going to elaborate in his tales. The general prologue introduces the range of the thematic and stylistic elements developed in the collection. The reader can misunderstand the author’s message, misled by the generic forms represented in the prologue. At first, a reader is likely to concentrate on the gallery of portraits, perceiving them as a satirical representation of different social classes contemporary to Chaucer. Ian Johnston (1998) suggests that it is necessary to distinguish between character and thematic analysis. As a rule, critics focused on the character analysis of the prologue, ignoring the thematic approach, which is the consideration of ideas and leitmotivs and the way how they are ‘presented, modified, challenged and resolved by the end of the work’. From thematic perspective characterization plays a primary role in the presentation of coordinating ideas. However, one is to bear in mind, that, unlike philosophical works, works of fiction do not offer rational arguments (though may contain them to some degree). Thus, it is not right to reduce a work of fiction to some simple ‘moral ’. By this Johnston must mean that interpreting the general prologue as purely a work of satire we are likely to miss an opportunity to understand the real message of the author. First of all, it is necessary to focus on the famous opening lines (1-18). These lines imitate the opening of the thirteenth-century French Romance of the Rose, an allegorical dream vision and love romance which was the ‘best-seller’ of the thirteenth and fourteenth centuries. All the educated readers were familiar with that work, partially translated into English by Chaucer himself. Imitating the opening of the Romance, Chaucer plays with the reader’s expectations, suggests Debora B. Schwartz