Eastern European Banking Model

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.

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Ways through which AWS Training is Advantageous

We are living in a digital era where cloud computing is the norm of the day, which majority of businesses around the world adopting cloud computing and even shifting there on premise structures to cloud computing. When you think of cloud computing the first thing that comes to mind is AWS which is leading the pack in terms in terms of ease and innovative. AWS or Amazon Web Services is the leading cloud computing model that serves the business with a wide range of IT distribution services, and you can check here for momore info. If you are not familiar with AWS, then it is the leading distributor of IT services to business because it is the leading cloud computing model, which you can know more about if you viview here! When it comes to cloud computing you can never go past AWS which is the leading cloud computing model serving business with wide IT solutions. Because of the ever changing demands of the IT industry, you can keep up with them by taking AWAWS Training AWAWS Training Companynables you to keep up with the growing and changing trends of the IT industry. In this article you will lelearnome of the advantages of undergoing AWS training.

One of the remain reasons to have AWS certification or undergo training is because it is a technology that has evolved and will be here the next several years; with many businesses choosing to switch to the use of cloud computing in doing everything, you will be securing your future by undergoing the training. Undergoing AWS training will impact you with the skills required to fill the job positions as many businesses are choosing to embrace the use of cloud computing as you will know if you check it out!

Even though it will not guarantee employment, having AWS certification will be good for your resume and will create a positive impression in your potential employer as we as increasing your chances of securing employment. When you gain knowledge in the AWS field through training you will gain better pay because you will have an edge over your colleagues who don’t have it’ without AWS training and certification you cannot earn the same amount.

Besides being able to earn more or enjoy a pay rise, undergoing AWS training and certification means you will have more job opportunities because more and more businesses are shifting to cloud computing. If you are a freelancer AWS certification can work in your best interest and you will get more online clients since it is proof you can comfortably and professionally handle their projects. Undergoing AWS training will be beneficial to your employer too because they will enjoy certain privileges if they have AWS certified employees.

In most trainings people usually have to quit their jobs and pay very expensive fees to be certified but AWS certification is totally different because they offer a realistic path that does not require very expensive training fees. AWS certification can also be proof of your commitment because it will require you to invest more time and effort to clear the exams in addition to choosing AWS certification. Discussed in this article are the ways through which AWS certification is advantageous.

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Step By Step Guide to the Diverse Kinds of Scope Mounts

There are around 11.5 million hunters in the US. They spend around $25.6 billion annually on ammunition and rifles. A higher percentage of this expenditure is in the attempt to get the best accomplices for your shotgun, handgun or rifle.

If you want to enhance your hunting game, then finding a good scope mount for your gun should be the first step. There are different types of scope mounts in the market, so if you are in search for the best scope ring or mount then this is your article. It can be a daunting task to decide the right ring or mount for your gun that you should purchase.

Always remember that when looking for such an accessory that saving money cannot be your definitive objective. Firing risky shots and using up a lot of ammunition is as a result of a malfunctioning scope mount which causes you to be off-target. If you fit the high-quality mounts, rings, and bases correctly, then your next hunting escapade will be peaceful. Read on and find out how to select a good scope mount.

Just as the term states, fixed scope mounts are fixed permanently onto your rifle. You cannot remove the scope mount from your rifle as it has been permanently fixed. This is a good answer for those whose rifles do not have much space between the bells and the center hub.

Scope mounts that can be separated from the firearm is the detachable systems. This works when you realize failure in the optic when hunting or when you don’t need the scope during close range. If you own several guns this option is for you because you fix the mount on the firearms and use one scope, find out how.

Regardless of the type of scope mount you select, you should be aware of what bases and rings are. This is because they vital in the successful scope mount installation.

The availability of bases is either in one-piece system or two-piece system. When loading or unloading your rifle it is interfered with by the one-piece system. However they are best during resistance recoil, find out how.

Rings are produced to go hand-in-hand with the proposed base. So if you choose a Weaver-style base, a Weaver-style ring should match to optimize the firearm’s performance, find out how.

You may be overwhelmed when looking for the right scope mount. This can be made easy for you if you consult with a salesperson in the gun shop or a firearm expert. You may have to try out different guns before you decide on the right one. This is the time to go over to the firearms safety section shop and find out how to safely store your guns.

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Gains of Air Quality Testing In NYC

There are chances that you will want to spend most of the time indoors during the cold weather. It is for this cause that you cannot afford to stay in a house whose air quality is poor since you might have some health issues. For instance, you can get flu when you breathe air that has some dust and other contaminants. Air quality testing is not a walk in the park assignment, even if there are tons of information on how to do it available on the internet. The most informed choice is working with an indoor air quality testing firm since you can be sure that they will handle the assignment correctly. The article looks at the gains of air quality testing in NYC.

Contaminated air can be quite challenging to breathe in more so when it has some dust and mold particles in it. At times you can have some allergies when you breathe in low-quality air in your house. The air quality testing experts will ensure that the air in your home is safe for you to breathe so that you will not have any respiratory issues. It means that you can rest ascertained about your health safety when you work with the experts for indoor air quality testing.

You cannot speak about the indoor air pollutants without mentioning mold since it is a significant contributor to contamination. Mold can develop in the bathroom and cellars where it can spread to other parts of the house that have some moisture. You might start having some skin rashes, nasal stiffness, and even wheezing when you have mold in your home. Working with an air quality testing professional will help you in identifying whether you have mold in your house and how to remove it. The specialists can even advise you on how you can prevent the mold from growing again in your home.

Insects, rats, and cockroaches are some of the things that most homeowners have to deal with all the time. The droppings from these creatures can be dangerous for indoor air quality. Conducting an indoor air quality test will help you in knowing how such animals are polluting the air quality and how to deal with them. The move can guarantee you that you will not worry about have some health issues because of the creatures available in your house.

Lung cancer or any other type of cancer can be deadly more so when it is left untreated for an extended duration. Treating cancer can require a lot of money, not forgetting that the patient might have substantial stress during the process. The best thing is trying to prevent cancer so that you will not have any issues in the future. Breathing in asbestos fibers has been known to cause mesothelioma and lung cancer, which means you are at risk if your home is constructed from asbestos. The specialists will assist you in checking if your house contains asbestos and secure ways of eliminating it.

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