This article from Kiplinger Personal Finance provides tips for financing big purchases. It suggests taking advantage of the grace period on credit cards, which allows for interest-free payments for a certain period of time. Some credit card issuers also offer installment plans with fixed fees or lower interest rates for specific purchases. Another option is to open a credit card with a 0% introductory interest rate on purchases, but it is important to pay off the balance before the no-interest period expires. The article also briefly mentions top checking accounts. [Extracted from the article]
*INTEREST rates, *COST of living, *LOANS, *BANKING industry, *ONLINE banking, *CHECKING accounts, *OVERDRAFTS, *CERTIFICATES of deposit, *DEBIT cards
Abstract
This article from Kiplinger Personal Finance discusses how much money individuals should keep in their checking accounts. The author suggests keeping enough money to cover one month of living expenses, along with a cushion for unexpected bills. Additionally, it is recommended to hold an additional two weeks' worth of living expenses in case of emergencies. The article also advises individuals to transfer excess funds to high-yield savings accounts or money market accounts to earn a better interest rate. [Extracted from the article]
This article discusses the pros and cons of switching banks. It highlights that while large banks offer advanced technology and a wide range of products, they often have lower interest rates on savings accounts compared to small banks and credit unions. The article also mentions that customers of large banks are willing to accept lower rates in exchange for other benefits, while customers of small banks are more price-sensitive. Additionally, the article suggests that internet banks offer competitive rates due to their lack of physical branches. It also provides tips on how to switch bank accounts and mentions that credit cards from small and medium-size banks and credit unions generally have lower interest rates compared to those from large banks, but paying off the balance every month can be more beneficial. [Extracted from the article]
GENERATIVE artificial intelligence, BANK service charges, INTEREST rates, MATHEMATICS, PROFESSIONAL fees, CHECKING accounts, AUTOMATED teller machines
Abstract
The Consumer Financial Protection Bureau (CFPB) has increased its efforts to regulate fees charged by banks. Under a proposed rule, overdraft charges would be treated as extensions of credit, similar to credit card loans. The CFPB also proposed a rule to ban nonsufficient funds fees tied to debit card, ATM, and digital transactions. Bank of America has seen success with its AI-powered chatbot, Erica, which has saved the bank significant time and costs. However, regulators have also highlighted the potential risks associated with AI use in the banking industry. The CFPB plans to monitor the market's response to the proposed overdraft rule before applying it to smaller banks. [Extracted from the article]
BANK service charges, INTEREST rates, BANKING industry, ONLINE banking, BANK customers, SAVINGS accounts, CHECKING accounts, BANK accounts
Abstract
The article from MoneySense discusses the importance of understanding the fine print before opening a new bank account with a promotional offer. It highlights the temporary nature of promotional rates, the conditions required to qualify for them, and the potential fees associated with the account. The article also introduces EQ Bank as an alternative with high interest rates, no temporary promotions, and no fees for everyday banking. It emphasizes the importance of considering lasting high rates and benefits when choosing a bank account. [Extracted from the article]
The article focuses on Goldman Sachs's profit surge in the second quarter (Q2), rebounding from consumer banking setbacks, asset management flourished despite sluggish M&A and trading amid high interest rates.
BANKING laws, INTEREST rates, BANKING industry, CHECKING accounts, FEDERAL regulation
Abstract
The article discusses adverse consequences of the U.S. Banking Act of 1980. The Act does nothing to eliminate hidden substitution effects that diminish the ability of market rates and yields to accurately signal the cost of funds. The Act's provision for the payment of interest on checking accounts will engender structural pressure on short-term rates. Since major provisions of the Act became law in November, 1980, large spreads have developed between unregulated interest rates and rates such as those on checking and savings accounts subject to rate ceilings.
DEMAND for money, MONEY supply, HOUSEHOLDS, BANK deposits, CHECKING accounts, INTEREST rates
Abstract
This paper has developed and discussed a general model of the demand for money by household units. It resulted in demand functions for each short term asset that were functions of rates of return and transactions costs of the asset in question and its adjacent assets only. All other returns and costs are irrelevant in the determination of asset holdings. The model also integrated the existence of the two media of exchange into money demand theory. It is demonstrated that an important determinant of the fraction of money holdings held in demand deposits or currency is the fraction of transactions made using that form, the relative transactions costs using both forms, and their rates of return. Finally, commodity inventories have been integrated into a choice theoretic model of optimal behavior so as to consider this asset as a viable alternative form of short term holdings. It is demonstrated that the existence of commodities results in a reduction in the transactions demand for money at all interest rates and consumption levels. [ABSTRACT FROM AUTHOR]
The article discusses the overdrafts and payday loans as a costly form of short-term credit. Topics discussed include overdrafts and payday loans can provide quick access to credit but at the price of high interest rates, delay in salary sometimes due to electronic payments into their bank account and high cost of overdrafts pose severe burden to government employees in Ghana.
Sharon, Michelle, Irene, Olive, Sonya, Lily, and Boo
Subjects
BANKING industry, INTEREST rates, BANK accounts, FINANCIAL stress, CHECKING accounts
Abstract
It pays to check your bank accounts Just writing to thank you for the Best of the Best issue. The son can let the bank know he lost his job, and the bank has an obligation to assist him under a financial hardship arrangement under the National Credit Code until he can get another job … and it's better than losing your home and even better for Lyn - she won't have to sell hers or lose her pension. - Olive If he is that hard up he can rent it out or sublet rooms to pay the mortgage or get another job - plenty of work if you want to work. [Extracted from the article]
This study examines whether personal current accounts offering an overdraft facility cost customers less to use than accounts not offering this service. This analysis uses a UK data set of 222 personal current accounts, recorded monthly between 1995 and 2011, in combination with interest rates from 1200 instant-access deposit accounts offered contemporaneously by the same firms. Our results indicate personal current accounts offering overdraft facilities have higher deposit and payment service costs than accounts not offering this service. The finding is robust to varying service attributes. This result is inconsistent with suggestions that overdraft users have been cross-subsidising other personal current account users as widely reported in theoretical and policy literatures. It is concluded that implicit and inertia costs of personal current account use may be more influential than previously reported in the pricing of these accounts. [ABSTRACT FROM AUTHOR]
This article titled "Earning, saving and spending money in Canada: A guide for new immigrants" provides information and guidance for individuals who are new to Canada or planning to move there. It covers various topics such as banking, budgeting, buying, careers, debt, financial literacy, investing, pensions, real estate, retirement planning, taxes, and more. The article offers advice on how to prepare for moving to Canada, finding employment, building a good credit history, and planning for retirement. It also provides additional resources and articles for further information on personal finance topics. [Extracted from the article]
CHECKING accounts, INTEREST rates, ONLINE banking, BANK service charges, BANK customers, BANKING industry, CREDIT cards
Abstract
According to ING Bank, its younger customers also love the fact that its savings and transaction accounts don't charge fees and also offer competitive interest rates. Technology is key for all bank customers who have embraced digital banking, with 98.9% of total transactions now made online and through apps, according to the Australian Banking Association. Bowen says 80% of ING's active customers have taken up its mobile app and 48% of customers interact through mobile app only, up from 44% in just one year. [Extracted from the article]
BANK deposits, RETAIL banking, DEPOSIT accounts, CHECKING accounts, INTEREST rates, CENTRAL banking industry, RETAIL industry
Abstract
Rates on checking accounts will be 0.25% starting in October, and many savings products will pay at least 3% interest already next month, the bank said in an emailed statement on Monday. (Bloomberg) -- Nordea Bank Abp, the largest bank in the Nordic region, is raising deposit rates on accounts held by its personal banking clients in Finland. [Extracted from the article]
BANK deposits, RETAIL banking, DEPOSIT accounts, CHECKING accounts, INTEREST rates, CENTRAL banking industry, RETAIL industry
Abstract
(Bloomberg) -- Nordea Bank Abp, the largest bank in the Nordic region, is raising deposit rates on accounts held by its personal banking clients in Finland. Rates on checking accounts will be 0.25% starting in October, and many savings products will pay at least 3% interest already next month, the bank said in an emailed statement on Monday. [Extracted from the article]
A New York Times/Siena College poll released Monday found that 54% of likely GOP voters backed Trump, compared to 17% for DeSantis. (Bloomberg) -- Florida Governor Ron DeSantis had a big boost to his assets and income in recent years, his financial disclosure shows, but still falls far short of the wealth held by his main rival for the Republican nomination, former President Donald Trump. [Extracted from the article]
INTEREST rates, CHECKING accounts, TELEVISION interviews & interviewing, BANK employees
Abstract
George said she supported the moderation in rate hikes last month and suggested she is wary of tightening too much. (Bloomberg) -- Kansas City Fed President Esther George, who is retiring this month, said officials don't want to raise interest rates by so much that policy becomes overly restrictive and the economy can avoid a sharp downturn. [Extracted from the article]
Whether you want to keep funds in your easy-to-access transaction account or organise it into multiple savings accounts or buckets, we're giving customers the confidence to manage their money their way and still earn a great ongoing interest rate." HT
INSTITUTION
PRODUCT
1-YEAR BALANCE
BASE RATE
MAX RATE
M0NTHLY FEES
BANK
1 Macquarie Bank
Macquarie Transaction Account
$5113
2.3%
2.3%
None
2 Defence Bank
Teen Saver
$5100
2.0%
2.0%
None
3 Bank First
Pension Account
$5100
2.0%
2.0%
None
NONBANK
1 Challenger
MySavings Account
$5055
1.1%
1.1%
None
2 bcu
bcu advantage saver
$5017
0.3%
1.0%
None
3 Newcastle Permanent
Special Monthly Interest Account
$5002
0.2%
0.2%
None
ht Source: InfoChoice/Rainmaker Information, as at September 1, 2022. BANKING: Savings accounts Now is a great time to have excess cash in the bank and, as our winners demonstrate, a well-chosen everyday account can put you in front financially. [Extracted from the article]
Payday lending attracts attention for its high interest rates, but bounce protection loans are much more expensive. Bounce protection is a program where consumers overdraft—write checks in excess of the checking account balance—and the bank pays the check allowing the account balance to be negative. For this service/loan, banks charge the standard non-sufficient funds (NSF) fee. When the amount borrowed is low and the time outstanding is short, the effective interest rate paid on this loan can be quite high. Using a unique data set we were able to quantify how high the interest rate is. We found that the median implicit interest paid by consumers is over 4,000%. [ABSTRACT FROM AUTHOR]
With its popular Total Checking, you can avoid the $12 monthly fee if you have at least $500 in electronic deposits, keep a checking balance of at least $1,500 or have $5,000 or more in combined balances among Chase deposit and investment accounts. BANKING FREE CHECKING IS GETTING even easier to find, according to Bankrate's 2021 study of checking account and ATM fees. Series EE savings bonds
CHECKING accounts, INTEREST rates, PERSONAL finance, BANK accounts, PAYMENT systems
Abstract
The article discusses high-interest checking accounts available at some credit unions and community banks. Customers who agree to restrictions that may include maintenance of a minimum balance, electronic statements, and a minimum number of debit-card transactions each month can obtain rates of up to 5% on their accounts.
The article provides information related to short-term funds investment in online banks as of December 2007. It is recommended that short-term funds be invested or deposited in high-yielding savings accounts, checking accounts and money-market mutual funds to ensure high returns. Consumers are advised to review the interest rates, to look for possible hidden fees and charges for services such as balance inquiry and telephone transactions and to verify an online bank's stability before opening an account.
Discusses bounce-protection plans for low-income customers who don't qualify for traditional overdraft credit lines. Fact that instead of charging interest on the money advanced, these accounts levy hefty flat fees; Hope among consumer groups that the Federal Reserve would block these plans; Importance of looking for a bank that offers market interest rates to cover bounced checks instead of fees.
Discusses why investors who have moved funds into investments like mortgage-backed mutual funds, Treasuries and real-estate funds could lose money. View that all these long-term investments could lose value once the U.S. Federal Reserve starts raising interest rates; Suggestion that now is a good time to bring emergency money back to a money-market mutual fund, interest-paying checking account or bank money-market deposit account.
In his opinion for the panel, which Judge Higginbotham joined, Judge Dennis agreed with the district court that the Bank's extended overdraft charges are not "interest" under the Act. In Johnson v. BOKF National Association, 15 F.4th 356 (5th Cir. 2021), the Fifth Circuit for the first time applied the new Auer deference framework established over two years ago in Kisor. The question was whether a national bank, BOKF National Association ("Bank"), violated the National Bank Act of 1864 by charging its checking account customers "extended overdraft charges.". [Extracted from the article]
Others, like the no-fee chequing accountoffered by Simplii Financial, have no monthly fee--even ifyour balance falls to $0 or is overdrawn. Chequing accounts have three main types of fees: monthlyfees, transaction fees and international money transfer fees.Check these fees when shopping around for your nextaccount. Some Canadian banks offer low- or no-fee chequing accounts, as well as generous welcome offers. [Extracted from the article]
CREDIT card laws, THRIFT institutions -- Law & legislation, BANKING industry, CHECKING accounts, PERSONAL loans, INVESTMENTS, INTEREST rates
Abstract
The article discusses the issues on the use of credit cards by the thrift institutions in the U.S. It cites the Depository Institutions Deregulation & Monetary Control Act, which allows both thrift institutions and banks to provide interest-bearing checking accounts in 1981. The legislation also permits them to issue credit cards and devote up to 20% of their portfolios to consumer loans. However, it says that the thrifts will be slow to opt for credit cards due to its interest rate volatility.
BANKING industry, POSTAL money orders, INTEREST rates, CHECKING accounts, REMITTANCES
Abstract
The article reports on the move of banks in the U.S. to capitalize on the increase in postoffice money order rates effective March 26, 1944. It notes that banks are all set to take advantage on the increase through larger volume sales of their own banking money orders and through greater use of their no-minimum-balance checking accounts. It mentions the potential of banks to undersell the Post Office Department on money orders for large remittance as well as on orders as low as 2.50 dollars.
RETURNS TO SCALE, TAX, BANKING SYSTEM, INVENTORY, BUDGET, DURABLE GOODS, EXCHANGE RATES, DEPOSIT, INFLATION, POTENTIAL OUTPUT, PRIVATE LENDING, LAGS, DEPOSIT INSURANCE, INCOME, MACROECONOMICS, PRODUCTIVITY, FEDERAL RESERVE, REAL INTEREST RATE, FINANCIAL CRISIS, INFLATION RATE, RETURNS, OPTIONS, SAVINGS ACCOUNTS, BONDS, PORTFOLIO CHOICE, DISTRIBUTION, TRANSACTIONS, VELOCITY OF MONEY, MORAL HAZARD, LOANS, LIQUIDITY CONSTRAINTS, CHECKING ACCOUNT, GOVERNMENT BUDGET, MARGINAL COST, CONSTANT RETURNS TO SCALE, HOLDING, GOVERNMENT BANK, DEPOSITS, MARKETS, MARKET STRUCTURE, FINANCE, FEDERAL RESERVE BANK, OPEN ECONOMY, WELFARE, SHORT-TERM BONDS, PRODUCTION, LABOR MARKET, MONETARY POLICY, ELASTICITY, MONEY, PRIVATE BONDS, REAL INTEREST, CONSUMPTION, LIQUIDITY, INTEREST RATES, DEBT, RISK NEUTRAL, INTEREST PAYMENTS, PAYMENTS, COSTS, RESERVE BANK, CHECKING ACCOUNTS, RETURN, OPTIMUM, RESERVE REQUIREMENT, TAX RATE, RESOURCES, DEMAND, CONSUMERS, ECONOMIC ACTIVITY, SAVINGS ACCOUNT, UTILITY FUNCTION, MONEY SUPPLY, TAX REGIME, AGGREGATE SUPPLY, PORTFOLIO, BUDGET CONSTRAINT, POLITICAL ECONOMY, EXCHANGE, LENDER, INCOME DISTRIBUTION, GOVERNMENT REVENUES, INCOME TAX, DEPOSIT ACCOUNTS, UTILITY, VALUE, DERIVATIVES, LIQUIDITY CRISES, CHOICE, DEMAND FOR MONEY, BOND OPTION, RESERVE, RATE OF RETURN, GOOD, TAXES, PRIVATE BANK, GOVERNMENT BOND, DOLLAR PRICE, INEFFICIENCY, GOVERNMENT SPENDING, OPTION, LOAN, CREDIT, TAX REVENUES, EXPENDITURES, PUBLIC FINANCE, INTERNATIONAL BANK, CONTRACT, SOCIAL COST, NATIONAL DEBT, LABOR, SUPPLY CURVE, CONTRACTS, LOW INTEREST RATES, BUDGET CONSTRAINTS, INTEREST, INCENTIVE, SAVINGS, REVENUES, TRANSACTION COST, INTEREST RATE, MARKET ECONOMY, EXPENDITURE, TRANSACTION
Abstract
This paper studies the possibility of using financial regulation that prohibits the use of money substitutes as a tool for mitigating the adverse effects of deviations from the Friedman rule. When inflation is not too high regulation aimed at eliminating money substitutes improves welfare by economizing on transaction costs. The gains from regulation depend on the distribution of income and the level of direct taxation. The area under the demand for money curve is equal to the welfare cost of inflation only when there are no direct taxes and no proportional intermediation cost: otherwise, the area under the demand curve overstates the welfare cost of inflation when money substitutes are not important and understates the welfare cost when money substitutes are important.
BONUS DO YOU LIKE YOUR CREDIT CARD or bank account enough to recommend it to a friend or family member? For most of its cards, Discover offers a statement credit of $50 to $100 if you make a referral, and your friend gets a statement credit after making a purchase within the first three months (log in to www .discover.com/sharediscover to see the amount available and annual cap). Similarly, you may pay tax on bonuses you receive for opening or referring a friend to a bank account. lisa gerstner Lisa Gerstner@kiplinger.com RATE UPDATES For the latest savings yields and loan rates, visit kiplinger.com/links/rates. [Extracted from the article]
TD Bank's recent promotions included a $300 bonus if you open a Beyond Checking account and have direct deposits totaling $2,500 within 60 days (one way to waive the $25 monthly fee is to maintain a $2,500 balance). The bank also offered a $200 bonus for starting a Beyond Savings or Simple Savings account, depositing $20,000 within 20 days and maintaining a $20,000 balance for 90 days (see www .td.com). Other major banks that recently offered bonuses include HSBC, PNC and SunTrust. [Extracted from the article]
Why are Apple, Google, Face- book and other tech companies interested in offering banking and financial services? Often, the tech company will be the brand that the customer sees while the bank takes on regulatory issues and other behind- the-scenes tasks. Tech companies will likely offer lower fees and higher interest rates than traditional banks. [Extracted from the article]
The article focuses on the new high-yield free checking at Capital One Bank. It states that Capital One claims that the 1 percent interest rate it pays on high-yield checking accounts is five times the national average. It notes that the Capital One high-yield checking account allows one to earn a very good interest rate. Moreover, its rate is applied only to deposits up to $100,000, and one will get 0.6 percent on anything over that amount.
AFFORDABILITY, FINANCIAL SECTOR DEVELOPMENT, INVESTMENT, ACCESS LEVELS, SAVINGS BANK, LEGAL TITLE, DEPOSIT, FINANCING, RISK PERCEPTIONS, LAND ISSUES, FINANCIAL SECTOR ASSESSMENT, MORTGAGE MARKET, INVESTMENTS, AFFORDABLE HOUSING, AFFORDABLE HOUSING FINANCE, COOPERATIVE, COLLATERAL, MORTGAGE LOAN, REGULAR PAYMENTS, FINANCIAL MARKET, MORAL HAZARD, CREDIT FLOW, CREDIT LINES, TITLE REGISTRATION, EARNINGS, INTERESTS, MORTGAGE, DOWN PAYMENT, FINANCIAL MARKETS, LOAN PROGRAMS, AGRICULTURAL FINANCE, BORROWERS, LOAN APPROVAL, DEPOSITS, NEW BUSINESS, MORTGAGE PRODUCT, RECEIPT, MICRO FINANCE INSTITUTIONS, PROPERTY RIGHTS, BUSINESS VOLUMES, BALANCE SHEET, MICROFINANCE INSTITUTION, ACCESS TO FINANCIAL SERVICES, MONETARY POLICY, INTEREST RATES, MORTGAGES, CREDIT RISK, ARREARS, GUARANTEES, AFFORDABLE FINANCING, LOAN SIZE, PAYMENTS, RESIDENTIAL MORTGAGES, LAND MARKET, FINANCIAL SERVICES, PROPERTY, DEBTS, PROFITABILITY, LOAN PORTFOLIO, FORM OF COLLATERAL, PROPERTIES, DEBT OUTSTANDING, FIXED ASSETS, SAVINGS PRODUCT, GOVERNMENT FUNDING, COOPERATIVE BANKS, LENDERS, LENDER, INCOME TAX, SECURITY, PROPERTY TAX, PRIVATE SECTOR LOAN, LOAN PRODUCTS, FINANCIAL SYSTEM, FINANCIAL INSTITUTIONS, BUSINESS PLAN, UMBRELLA ORGANIZATION, HOUSEHOLDS, BANKING SERVICES, PRIVATE CREDIT, BANKS, LAND ADMINISTRATION, HOME OWNERSHIP, CREDIT GUARANTEES, UNION, BORROWING, PRIVATIZATION, MICRO LOANS, LOAN, CREDIT, FINANCIAL DEVELOPMENT, REGULATORY OVERSIGHT, MICROFINANCE, MORTGAGE DEBT, PROVISION OF MORTGAGE, COOPERATIVES, INCOME GROUPS, REPAYMENT, REAL ESTATE, CORRUPTION, FINANCIAL HEALTH, HOUSING FINANCE, ECONOMIC AGENTS, WHOLESALE FUNDING, CREDIT WORTHINESS, PAYMENT, BANKING SYSTEM, URBAN AREA, RURAL BANKS, FIXED DEPOSITS, TECHNICAL ASSISTANCE, CREDITOR, URBAN COOPERATIVE BANKS, FINANCIAL EDUCATION, WOMEN, CONSUMER EDUCATION, REGISTRATION SYSTEM, TECHNICAL SUPPORT, GUARANTEE, POSTAL SAVINGS, BANK, LACK OF CAPITAL, LOANS, CONSUMER PROTECTION, MICRO-FINANCE, DISCLOSURE REQUIREMENTS, RISK MANAGEMENT, MFI, HOUSING LOANS, SECONDARY MORTGAGE MARKET, GUARANTEE SCHEME, FINANCE, DEVELOPMENT FINANCE, COOPERATION, CREDIT BUREAU, HOME IMPROVEMENT, HOUSEHOLD, LACK OF FINANCE, DEBT, GRANT, SOURCES OF FUNDS, FINANCIAL SECTOR REFORM, CAPITAL ADEQUACY, MFIS, MORTGAGE LENDING, CREDITS, FINANCIAL PRODUCTS, CHECKING ACCOUNTS, ACCESS TO FINANCE, FEES, CAPITAL MARKET, LAND MARKETS, CAPITAL, BANK LENDERS, FINANCES, DEPOSIT ACCOUNTS, INSTALLMENTS, INFORMATION ON CREDIT, MARKET DEVELOPMENT, REMITTANCES, HOUSING LOAN, BANK FINANCING, BORROWINGS, FAMILY, CORPORATE DEPOSITS, EMPLOYEES, EQUITY, MORTGAGE LOANS, LONG-TERM LENDING, FINANCIAL INSTITUTION, TERMS OF LOAN, LAND RIGHTS, MICROFINANCE INSTITUTIONS, ACCESS TO CREDIT, LOAN GUARANTEES, COMMERCIAL BANKS, PEOPLE, HOMEOWNERSHIP, POOR CREDIT, INVESTMENT BANK, FULL ACCESS, CREDIT INSTITUTION, INTEREST, ELIGIBILITY CRITERIA, LOAN GUARANTEE, SUBSIDY, FINANCIAL SUPPORT, FINANCE COMPANIES, SAVINGS, MICRO FINANCE, URBAN AREAS, INTEREST RATE, EQUITABLE ACCESS, TAX CONCESSIONS, MORTGAGE LENDERS
Abstract
The housing finance market in Mali remains small and under developed. Few banks currently offer a full mortgage product with Banque Malienne de Solidarite, Mali Housing Bank (BHM), Bank of Africa, and EcoBank being the main lenders although at minimal levels. The total annual housing need in Mali based on the household formation rate amounts to 82,500, split between 51,100 urban units and 31,400 rural units. Overall some social housing is constructed and support is provided by the state for low income housing through the Office Malienne de l’Habitat (OMH), but the numbers remain small. The Malien authorities have been working to strengthen financial sector stability which includes measures to stabilize the BHM and put it in a position where it begins to fulfill its mandate of providing credit for the housing sector. A strategy was approved by the council of Minister for a strategic disengagement by the state from the share capital of BHM. Initially the agreed plan was for BHM to be privatized. Overall progress in delivery of affordable housing will require a concerted effort among all stakeholders both in public and private sector. This should be supported through establishment of stakeholder coordination group to oversee change across the housing value chain.
INVESTMENT, TAX EXEMPTIONS, PAYMENT, PUBLIC CREDIT, REGULATORY POLICIES, ECONOMIC GROWTH, PRIVATE INVESTMENT, BANKING SUPERVISION, EMPLOYMENT GROWTH, PRIVATE INVESTMENTS, DEPOSIT, OVERDRAFT, TRANSACTION COSTS, FINANCING, EXTERNAL FINANCING, FISCAL DEFICIT, CREDITOR, TECHNICAL ASSISTANCE, BANK LENDING, FINANCIAL INTERMEDIATION, PENETRATION RATE, UNEMPLOYMENT, INPUT PRICES, INVESTMENTS, HOUSEHOLD WELFARE, FINANCIAL INFRASTRUCTURE, PUBLIC INVESTMENTS, DISPOSABLE INCOME, WOMEN, RED TAPE, COLLATERAL, COLLATERAL REQUIREMENT, GUARANTEE, PUBLIC FINANCES, BANK, LOANS, CREDIT LINES, BUSINESS DEVELOPMENT, INTERNAL FUNDS, CHECKING ACCOUNT, EARNINGS, CREDIT INSTITUTIONS, FINANCIAL MARKETS, INTEREST PAYMENT, TARIFF, FOREIGN DIRECT INVESTMENT, GUARANTEE SCHEME, BORROWERS, DEPOSITS, CREDITORS, FINANCE, FINANCIAL DISTRESS, ENTERPRISE DEVELOPMENT, CREDIT REGISTRY, LINE OF CREDIT, WELFARE, LACK OF ACCESS, COOPERATION, LABOR MARKET, ENTERPRISES, CREDIT BUREAU, LACK OF CREDIT, BUSINESS DEVELOPMENT SERVICES, ACCESS TO FINANCIAL SERVICES, INFORMATION SYSTEM, MONETARY POLICY, LOAN RECOVERY, HOUSEHOLD, PRIVATE EQUITY, FISCAL DEFICITS, INTEREST RATES, DEBT, GUARANTEES, ANGEL NETWORKS, GRANT, AVAILABILITY OF CREDIT, WORKING CAPITAL, SAVING, PAYMENTS, CAPITAL ADEQUACY, FINANCIAL SERVICES, MFIS, PROPERTY, DEBTS, CASH FLOW, FINANCIAL PRODUCTS, CHECKING ACCOUNTS, ACCESS TO FINANCE, FORM OF COLLATERAL, LABOR FORCE PARTICIPATION, ECONOMIC ACTIVITY, COLLATERAL REQUIREMENTS, EXTERNAL SHOCKS, TREASURY BILLS, FINANCE ACCESS, CAPITAL, BANKRUPTCY, INDICATORS OF ACCESS, LINES OF CREDIT, CREDIT INFORMATION SYSTEM, LENDER, FINANCES, INCOME TAX, COMMERCIAL BANK, SECURITY, REMITTANCES, ENTERPRISE, TARIFFS, CREDIT INFORMATION, CAPITAL MARKETS, CREDITWORTHINESS, BORROWINGS, STUDENT, FAMILY, FISCAL POLICY, FINANCIAL SYSTEM, FINANCIAL INSTITUTIONS, SOCIAL DEVELOPMENT, REVENUE, HOUSEHOLDS, EMPLOYEES, CREDIT REPORTING, DIVERSIFICATION, START-UPS, EQUITY, EMPLOYER, ECONOMIC DEVELOPMENTS, PRIVATE CREDIT, CURRENT ACCOUNT, BANKS, BANK LOANS, FINANCIAL INSTITUTION, UNION, MICROFINANCE INSTITUTIONS, BORROWING, BANK BRANCHES, PRIVATIZATION, DEBT FINANCING, LOAN, CREDIT, ACCESS TO CREDIT, EXPENDITURES, CREDIT FACILITIES, MICRO-ENTERPRISE, COMMERCIAL BANKS, INFORMATION ASYMMETRIES, PEOPLE, VENTURE CAPITAL, MICROFINANCE, POOR CREDIT, ISSUE OF ACCESS, LIMITED ACCESS, EDUCATION LEVEL, CREDIT HISTORY, REAL ESTATE, DEVELOPMENT CORPORATION, INTEREST, RECEIPTS, CORRUPTION, ACCOUNTS RECEIVABLE, JOB CREATION, LOAN GUARANTEE, SUBSIDY, SAVINGS, REVENUES, CAPACITY BUILDING, PUBLIC INVESTMENT, INSURANCE SERVICES, OUTREACH, REFUGEES, TREASURY BILL, GENDER, FINANCIAL INTERMEDIATIONS, FINANCIAL INSTRUMENTS, ENTREPRENEURSHIP DEVELOPMENT, EXPENDITURE
Abstract
Jordans economy continues to slowly but steadily recover from the Arab Spring spillovers. These spillovers include Egypts gas disruptions, the neighboring Syrian and Iraqi conflicts and associated security incidents. Notwithstanding these shocks, real GDP growth rate is estimated to have reached 3.1 percent in 2014, up 30 basis points over 2013. From the supply side, growth was led by construction, wholesale and retail trade, and finance and insurance, with a pick-up in the mining and quarrying sector. On the demand side, growth was predominantly fueled by higher public investments, mostly due to earmarked GCC grants, and a narrower trade deficit. The steady economic recovery has improved unemployment rates although this masks underlying structural weaknesses. While unemployment dropped from 12.6 to 11.9 percent from 2013 to 2014, this was not driven by increased employment but by an equivalent and concerning drop in the labor force participation rate. This was possibly driven by discouraged workers given perceived competition from refugees and limited hiring prospects in the public sector given ongoing consolidation efforts.
This article reports on rewards checking, a bank account that pays up to five percent interest without fees, and presents information that consumers should have before opening an account. The article warns that many accounts require debit card usage and online statements. Banks that offer the accounts might be difficult to find because they are mostly community institutions. The article also provides a website for finding local banks that offer rewards checking accounts.
The article reports a growing trend for banks to move their business online and for new internet-only banks to offer high interest rates on checking accounts. The article offers tips to consumers considering banking with these services, including checking into hidden costs after an introductory period or fees for withdrawing cash.
Offers advice for investments and savings for retirement. Impact of interest rates on savings accounts in the U.S.; Efforts of banks to offer interest rates on certificates of deposit higher than those of the national average; Potential benefits of online banks; High interest rate yields offered by money-market funds, which operate like interest-bearing checking accounts; Tips for balancing savings in investments and cash.
PRICE inflation, WEALTH, INTEREST rates, BANK loans, BANK deposits, CHECKING accounts, PURCHASING power, DEPOSIT insurance
Abstract
The formula for the lost purchasing power of demand deposits(DD) relative to nominal GDP (NGDP) is calculated as(DD/NGDP) * (p-i), where p denotes the inflation rate and irepresents the deposit rate. Recent high inflation certainly has affected consumers'pocketbooks; by one measure, it has reduced the purchasing powerof certain U.S. financial assets--demand deposits, time depositsand savings deposits--by nearly $1.8 trillion for the 12-monthperiod ending March 2022. The formula for the lost purchasing power of demanddeposits (DD) relative to nominal GDP (NGDP) is calculated as(DD/NGDP) * (p-i), where p denotes the inflation rate and irepresents the deposit rate. However, while higher inflation does erode thereal value of nominal assets, such as demand deposits, it alsolowers the real value of nominal liabilities, such as mortgages. [Extracted from the article]
CORPORATIONS, CREDIT CONSTRAINT, BANKING MODELS, EMPLOYMENT OPPORTUNITIES, INFORMATIONAL ASYMMETRIES, CREDIT GUARANTEE, DEPOSIT, MULTINATIONALS, OVERDRAFT, INSURANCE AGENCIES, UNEMPLOYMENT, COMPETITORS, FINANCIAL INFRASTRUCTURE, ACCESS TO BANK ACCOUNTS, BRIBE, FORMAL ECONOMY, FINANCIAL INTERMEDIARIES, WOMEN ENTREPRENEURS, BUSINESS OWNERS, COLLATERAL, COMPANY, OVERDRAFTS, MEDIUM ENTERPRISE, TIME DEPOSITS, MEDIUM ENTERPRISES, BRIBES, EMERGING MARKETS, BANK ACCOUNTS, FINANCIAL MARKETS, FIRMS, TAX LIABILITY, CONSULTING SERVICES, POINT OF SALE, DEPOSITS, INFORMATION SYSTEMS, INTERNATIONAL FINANCE, STATE OWNED BANKS, MULTINATIONAL, NEW MARKET, ID, ACCESS TO MARKET, LACK OF CREDIT, ACCESS TO FINANCIAL SERVICES, ECONOMIC COOPERATION, INTEREST RATES, SMALL BUSINESS, TERMS OF LOANS, CREDIT RISK, AVAILABILITY OF CREDIT, GUARANTEE SCHEMES, WORKING CAPITAL, FINANCIAL SERVICES, CASH FLOW, PROFITABILITY, PENETRATION RATES, FINANCIAL LITERACY, MANAGEMENT INFORMATION SYSTEMS, BANK ACCOUNT, FINANCIAL SUSTAINABILITY, REGISTRATION PROCESS, NEEDS OF WOMEN, NEEDS OF WOMEN ENTREPRENEURS, DEPOSIT ACCOUNT, EXCLUSION, TRANSPORTATION SERVICES, LENDERS, PUBLIC FUND, FORMAL FINANCIAL SECTOR, GREATER ACCESS, NEW BUSINESSES, PROPERTY LAW, BUSINESS ENABLING ENVIRONMENT, SME SECTOR, ACCESS TO INFORMATION, SME, SME FINANCE, LEASING, CREDITWORTHINESS, LARGE ENTERPRISES, CAPITAL STOCK, DEPOSIT PRODUCTS, BUSINESS PLAN, FINANCIAL INSTITUTIONS, CREDIT BUREAUS, BANKING SERVICES, EMPLOYER, PRIVATE CREDIT, BANKS, PRIVATE COMPANIES, SMALL BUSINESS BANKING, LOAN, DEVELOPING COUNTRIES, SECURITIES, MICROFINANCE, CREDIT HISTORY, FINANCE INITIATIVE, REAL ESTATE, SUBSIDIARY, GENDER EQUALITY, NEW MARKETS, AGRICULTURAL ACTIVITIES, CORRUPTION, MOVABLE COLLATERAL, SMALL FIRMS, LAWS, FINANCIAL NEEDS, CREDIT MARKET, GENDER, STORE, REGULATORY BURDEN, CORPORATION, INVENTORY, ECONOMIC GROWTH, EMPLOYERS, SMART CARDS, ENTREPRENEUR, EMPLOYMENT GROWTH, CUSTOMER BASE, BRANCH NETWORK, BUSINESS ENABLING, TRANSACTION COSTS, INFORMATION DISSEMINATION, MANUFACTURERS, BANK LENDING, PRIVATE COMMERCIAL BANKS, PARTIAL CREDIT, PRODUCTIVITY, BUSINESS ASSOCIATION, FINANCIAL CRISIS, SAVINGS ACCOUNTS, FINANCIAL SERVICES FOR WOMEN, INTERNAL FUNDS, BUSINESS OPPORTUNITY, CHECKING ACCOUNT, RISK MANAGEMENT, LACK OF COLLATERAL, ENTERPRISE FINANCE, BORROWER, BUSINESS ASSOCIATIONS, CHECKING, INFORMAL ECONOMY, CAPITAL LOANS, DEVELOPMENT FINANCE, SHOPS, ENTREPRENEURIAL ACTIVITY, MICROENTERPRISES, FINANCING SHORTFALL, LACK OF ACCESS, CREDIT GAP, REGULATORY REFORM, LOANS TO WOMEN, DEMAND FOR CREDIT, AFFILIATES, FACILITATION, BANKING SECTOR, COUNTRY COMPARISONS, CULTURAL BARRIERS, SOCIAL SECURITY, RETURN ON INVESTMENT, SME FINANCING, COMMERCIAL LOANS, HUSBAND, CONTRACT ENFORCEMENT, ECONOMIC DEVELOPMENT, ACCESS TO FINANCE, CHECKING ACCOUNTS, PARTIAL GUARANTEE, INCOME GROUP, ECONOMIC ACTIVITY, COLLATERAL REQUIREMENTS, INFORMAL FINANCING, ACCESSIBILITY, ACCESS TO MARKETS, FORMAL FINANCIAL SERVICES, LINES OF CREDIT, ACCOUNTING, LIMITED ACCESS TO FINANCE, MICRO ENTERPRISES, ACCESS TO EDUCATION, WOMAN, BANK FINANCING, E-LEARNING, SMALL ENTERPRISES, INFORMAL FINANCE, SUPPLIERS, HUMAN CAPITAL, INSURANCE, SUPPLY CHAIN, LOANS FOR WOMEN, SIZE OF FIRM, ACCESS TO RESOURCES, COMMERCIAL BANKING, FINANCIAL INSTITUTION, MICROFINANCE INSTITUTIONS, REGULATORY REFORMS, PUBLIC POLICY, ACCESS TO CREDIT, LOANS FOR WOMEN ENTREPRENEURS, SUPPLY CHAINS, COMMERCIAL BANKS, LOAN GUARANTEES, MICRO-ENTERPRISES, SME LENDING, MONETARY FUND, LIMITED ACCESS, EXTERNAL FINANCE, RECEIPTS, ACCOUNTS RECEIVABLE, JOB CREATION, REAL SECTOR, CASH FLOWS, ENTREPRENEURSHIP, SAVINGS, BRANCH, CAPACITY BUILDING, DEVELOPMENT FINANCE INSTITUTIONS, OUTREACH, NET LOSS, LACK OF INFORMATION, MULTINATIONAL COMPANIES, CREDIT DECISIONS, ADVISORY SERVICES
Abstract
Job creation and economic growth through private sector development have become primary areas of focus for policy makers around the world in the aftermath of the global financial crisis. Recent evidence points to the importance of small and medium enterprises (SMEs) in providing employment across countries. In addition to employing the largest number of people in aggregate, SMEs generate the most new jobs. But SMEs also face many challenges in day-to-day operations and to grow. This note is a report back on the state of the credit gap for MSMEs with this new and updated data, while providing additional focus on the sizable informal enterprise sector in the developing world. In addition, this report examines various operational challenges that small and informal firms face, and some formalization obstacles they often cite as the primary reasons for not registering their business. A framework to differentiate the informal sector is offered, with the intention of segmenting the vast landscape of informal firms some of which exist today due to opportunistic behavior, while others are just trying to survive and to better design specific interventions depending on the stage of development and the willingness of the firm to register its business. The rest of this report is organized as follows. Section I focuses on the credit gap for formal MSMEs, and offers some innovative models and interventions that can be used to more fully meet the financial and non-financial needs of formal MSMEs. Section II focuses exclusively on informal enterprises, and goes beyond the access to finance paradigm, describing the operational challenges faced by informal firms, reviewing the experiments that have tried to induce higher rates of formalization, and looking at a series of private sector models that if combined, could more fully meet the needs of informal firms.
Colombian authorities have made financial inclusion a core element of the country's socioeconomic development. The Central Bank of Colombia (BRC) requested support from the World Bank to develop and execute a nationally representative survey on financial capability. This report covers the first nationally representative study to detail the financial behavior, attitudes, and knowledge that comprise financial capability. One complementary national study is the annual Household Financial Burden and Education Survey (IEFIC) jointly undertaken by the BRC and the National Administrative Department of Statistics (DANE). This report provides insights on consumer behavior, attitudes, and knowledge relevant to initiatives promoting financial education and financial inclusion. Preliminary insights from this study have been used in developing the National Strategy on Social and Economic Policy (CONPES) document outlining the strategy for financial education in Colombia. There is an ongoing debate over measures that will codify a national financial education strategy into law. This report has following four objectives: (i) to provide empirical evidence on the financial behavior, attitudes, and knowledge of the Colombian population; (ii) to support the design of public policies to enhance both knowledge about and the quality of financial services; (iii) to highlight vulnerabilities and gaps in particular segments of the population with the goal of improving and focusing public policies and interventions where they are most needed; and (iv) to provide a basis for international comparison with other countries for which these data are available. This report describes a baseline measure of the financial capability of the Colombian adult population and highlights key results from the first national survey. This report is organized as follows: chapter one gives introduction. Chapter two describes key findings related to daily money management and financial planning behaviors and attitudes. Chapter three examines decisions related to the use of financial products and level of financial knowledge. Chapter four summarizes key behaviors and attitudes into financial capability scores, facilitating the creation of profiles and comparisons among different segments of the population. Chapter five presents international comparisons. Chapter six examines the relationship between financial capability, financial knowledge, and financial inclusion. Chapter seven provides policy recommendations related to the key challenges to financial capability identified in the report.
The article focuses on the deregulation proposed by U.S. President Jimmy Carter regarding the phase out of interest rate ceilings in the U.S. It says that the deregulation will have an effect on eliminating the differential between commercial banks and savings institutions. Carter suggested that saving bankers should be allowed to provide shorter-term and higher-interest consumer loans, and variable-rate mortgages for home buyers. He added that federally chartered banks should be authorized to offer interest-bearing checking accounts. Meanwhile, it says that top commercial bankers have promoted the phase out of the interest rate ceilings and differential, however, savings banks and savings and loan associations have opposed the deregulation.
INTEREST rates, DEPOSIT banking, CHECKING accounts, BANK service charges, SAVINGS accounts, USER charges, BANKING industry
Abstract
The article focuses on the decision of the U.S. Federal Reserve Board to allow its member banks to offer the preauthorized automatic transfer schemes (PATs). It explains that the ruling means that the banks can provide interest on the money deposited by consumers for checking. It also states that PAT accounts may only be profitable to depositors who write few checks and can maintain a balance of about 1,000 dollars. To implement the program, it discusses the use of negotiable order of withdrawals (NOWs) to simplify PATs.
MONEY supply, BANK accounts, ECONOMIC indicators, ECONOMIC recovery, CHECKING accounts, BUSINESS cycles, BANKING industry, UNITED States economy, 1971-1981
Abstract
The article reports on the concerns over the rise and fall of the money supply in the U.S. It shows that the basic money supply in five months from April to August 1977 has grown at an annual rate by .7%, despite the stop-go gyrations. However, money supply has declined to 800 million in the week ending September 7, 1977. Accordingly, it argues that Federal Reserve Chairman Arthur Burns and his colleagues may have misjudged the strength of the economic recovery by not considering the increase in money velocity, the speed at which money moves from checking account to checking account.
BANKING industry, PRESIDENTS of the United States, SAVINGS & loan associations, PERSONAL loans, CHECKING accounts, MORTGAGE loans, FINANCIAL services industry
Abstract
The article reports on the proposal of U.S. President Richard Nixon's administration to heighten the banks and savings and loan associations' (S and Ls) bidding for savings to provide the most generous terms on mortgage loans, personal loans, and checking accounts in the U.S. It states that the administration asks Congress to abolish all ceilings on the interest rates that banks and S and Ls can pay to savers. It also recommends to eliminate several distinctions between banks and S and Ls, allowing each to invade the other's turf. Nixon argues that the increase competition should reduce the cost of the entire package of financial services for the consumer.
SMALL business, CHECKING accounts, DEBIT cards, DEPOSIT accounts, CREDIT cards, DIGITAL technology, INTEREST rates
Abstract
October 28, 2021 American Express is rolling out a digital checking account for small businesses that comes with the card network's first U.S. debit card and pays a 1.1% interest rate. The Amex Business Checking app launches Thursday, and by early next year Amex credit card users will gain the option to convert their Amex Membership Rewards loyalty points to cash within the app, the New York card network announced. Signing up for Amex's checking account takes about 10 minutes through a streamlined process where existing Amex credit card users' account data is automatically populated within the application, Henry said. [Extracted from the article]
The article reports the provision of three percent interest rate on both checking and savings accounts by financial technology startup firm Robinhood. Topics discussed include its offering commission-free stock and cryptocurrency trades, its plan to acquire market share to be the reason for its expanding into checking accounts and the opinion of the company's co-chief executive officer (Co-CEO), Baiju Bhatt.