Thursday, May 27, 2010

Independent Financial Growth For Competition

Competition is found to have a positive impact when considered independently as well as in close relation with these other variables. The researchers argue that this means that the level of competition plays a significant role in its own sense in ensuring that the volumes of production are enhanced. The studies have further shown that neither regulation nor privatization have been able to play a major role in coordination with the level of competition that is found in the market.

The findings of the several authors has pointed to the fact that privatization has a very limited role to play when considered independently and that it has worked well only when it was used with the degree of regulation that could be exercised by such a body. Likewise, regulation was not found to have provided for the expected objectives when it was studied independently and it also proved to be ineffective in the absence of privatization as well. This is widely accepted as in the view that it is not possible to control and regulate whole state-owned and state-run enterprises.

Several authors have maintained that other there exist a close relation between how competition and regulation are the two main factors when it comes to determining the role and success played by the privatization of a sector or economy. The type of ownership, be it state run or government owned was not even considered (rather it was used to support a very small part of the inference and argumentative results) as any state-run business entity is only privatized whenever it is under severe underperformance.

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Monday, May 10, 2010

Interest Bearing Checking Account - What to Look For

There are a couple of things you should know when looking for an interest bearing checking account. Banks offer a few basic services. The two most common categories of services are non-transactional and transactional.

Non-transactional services have no direct bearing on financial transactions. They are supportive in nature, for example: marketing mail to customers, bank statements, handling phoned-in general queries.

Transactional services involve actual financial transactions, like: receiving deposits, servicing withdrawals, transferring account balances, granting loans, collecting loan payments, paying customers' bills. Services under this category gave rise to the term "transactional account".

A popular example of a transactional account is a demand deposit account, otherwise known as checking accounts. Before the advent of online banking, this was used solely for business convenience and not for the purpose of savings or earning interest. Thus, originally no interest was paid on this.

Now, with online banking much in vogue and becoming an industry of its own, an interest bearing checking account has become part of transactional services. This type of account has all the features of a traditional checking account, with interest earning capability added.

To some observers an interest bearing checking account is a cross-breed of the savings and the traditional checking program. To others, it is a savings account with check issuance privilege added. Whichever school of thought you pick, you can't lose.

Why can interest be paid now on checking accounts? Actually it had been effectively going on for quite some time even before online banking came. In an effort to be competitive, banks designed the automatic transfer service to attract clients to open two types of account: savings and checking. The tacit purpose of automatic transfer was to circumvent the no-interest rule on these accounts.

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