A review on European central bank ECB

The European Central Bank (ECB) is the national bank for the euro and controls fiscal strategy inside the Eurozone, which involves 19 part conditions of the European Union and is one of the biggest financial regions on the planet. Built up by the Treaty of Amsterdam, the ECB is one of the world's most significant national banks and fills in as one of seven organizations of the European Union, being cherished in the Treaty on European Union (TEU). The bank's capital stock is possessed by every one of the 27 national banks of every EU part state. The present President of the ECB is Christine Lagarde. Headquartered in Frankfurt, Germany, the bank in the past involved the Eurotower before the development of its new seat.

Advantages of European central bank ECB:
• European central bank ECB helps all include members of the European Union.
• European central bank ECB makes the banking decision of the EU countries.
• European central bank ECB introduce the EUR Currency.
• European central bank ECB helps in various critical situation on their member country.
• European central bank ECB helps to the all banks of the EU countries.

Disadvantages of European central bank ECB:
• When European central bank ECB control the banking sector then it become conflict with others central bank of those members country.
• To make decision is so tough for the European central bank ECB.

Review On Dubai Islamic Bank

The Dubai Islamic Bank (DIB) is an Islamic bank in Dubai, established in 1975 by Haj Saeed Bin Ahmed Al Lootah. It is the first Islamic bank to have incorporated the principles of Islam in all its practices and is the largest Islamic bank in the UAE

DIB Significant Subsidiaries and Associates:

Dar Al Sharia: Dar Al Sharia is a Sharia legal and financial consultancy firm established in 2008.Dubai Islamic Bank Pakistan: Dubai Islamic Bank Pakistan was established in 2006 as a fully owned subsidiary.
Panin Dubai Syariah Bank: 38.3% ownership in a Shariah compliant player in Indonesia, which has one of the largest Muslim populationsin the worldBank of Khartoum DIB holds a stake in Bank of Khartoum, one of the largest banks in Sudan

Services:

Dubai Islamic Bank offers corporate, as well as, personal, SME, and priority banking services all across Pakistan. With a variety of accounts, DIB gives its users access to conventional cash management, online payments, business financing, and saving services

The European Central Bank (ECB) or European Central Bank was formed in 1998 ahead of the official introduction of the European Union. The currency of the European Union issued by the ECB is the Euro. The euro was first traded in 1999 in virtual form and then banknotes and coins were introduced in early 2002. The ECB is the central bank that oversees all member countries that are members of the European Union. Previously the ECB supervised 11 countries when it was first established, then now it has increased to 19 countries with each central bank operating in each country under the ECB's authority.

Authority of the European Central Bank (ECB)
- Setting and implementing monetary policy
- Conduct foreign exchange operations
- Managing currency reserves in the Eurozone
- Improve the smoothness of transactions from member countries

CB has full control in implementing monetary policy in the European Union zone just like the Federal Reserve and Bank of England. Just like other central banks, the ECB also has a main target in achieving price stability determined

Industrial and Commercial Bank of China

INTRODUCTION:

Industrial and Commercial Bank of China Limited ICBC) is a multinational Chinese banking company.
Founded as a limited company on January 1, 1984,ICBC is a state-owned commercial bank. With capital provided by the Ministry of Finance of China,the bank's Tier 1 capital in 2013 was the largest of one thousand global banks, being the first bank headquartered in China to achieve this distinction in modern history. Subsequently, ranked the largest bank in the world 2017 and 2018, by total assets, (Dec. 31, 2018, US$4027.44 billion , ICBC was positioned at 1st in The Banker's Top 1000 World Banks ranking, every year from 2012 to 2019, and first (2019) on the Forbes Global 2000 list of the world's biggest public companies

History:

Preconditions of 1948-1979
From 1948 the mono-banking system of China was the People's Bank of China, providing both policy lending, and, operations to the commercial sector. During 1978 to 1979 banking reform was initiated by the government of China, with the express desire of bringing into existence a central bank accompanying four total central governmentally owned specializing banks, one of these four being ICBC.

Royal Bank of Canada

The Royal Bank of Canada is a Canadian multinational financial services company and the largest bank in Canada by market capitalization. The bank serves over 16 million clients and has 86,000+ employees worldwide.[4] The bank was founded in 1864 in Halifax, Nova Scotia, although its legal and official headquarters is located at Place Ville Marie in Montreal, Quebec. However, its corporate headquarters is located in Toronto, Ontario. RBC's institution number (or bank number) is 003. In November 2017, RBC was added to the Financial Stability Board's list of global systemically important banks.

In Canada, the bank's personal and commercial banking operations are branded as RBC Royal Bank in English and RBC Banque Royale in French and serves approximately ten million clients through its network of 1,209 branches. RBC Bank is the U.S. banking subsidiary which formerly operated 439 branches across six states in the Southeastern United States,but now only offers cross-border banking services to Canadian travellers and expats. RBC also has 127 branches across seventeen countries in the Caribbean, which serve more than 16 million clients. RBC Capital Markets is RBC's worldwide investment and corporate banking subsidiary, while the investment brokerage firm is known as RBC Dominion Securities. Investment banking services are also provided through RBC Bank and the focus is on middle market clients.

In 2011, RBC was the largest Canadian company by revenue and market capitalization.and was ranked at No. 50 in the 2013 Forbes Global 2000 listing, The company has operations in Canada, and 36 other countries and had US$673.2 billion of assets under management in 2014.

Corporate governance:

The title of Royal Bank's top executive has changed several times. Initially it was styled as President. Later, it became chief executive officer and one often carried additional responsibilities as chairman of the board, while the second-in-command was the President. Allan R. Taylor was chairman and CEO from 1986 to 1994, and he was succeeded by John Cleghorn in that capacity from 1994 to 2001. Dave McKay is currently the President and chief executive officer.
David P. O'Brien has served as the institution's chairman (non-executive) since 2004. The position was formerly held by Guy Saint-Pierre, who held the position from 2001 to 2004.

Memberships:

RBC is a member of the Canadian Bankers Association (CBA) and is a registered member with the Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits at all of Canada's chartered banks.

Al Rayan Bank

Al Rayan Bank PLC (formerly known as Islamic Bank of Britain) is a commercial bank in the United Kingdom, established in August 2004 to offer Sharia compliant financial service products to customers of any faith. The bank has three branches in London, as well as Birmingham, Manchester and Leicester and agencies in Luton, Tooting and Bradford.It is the first British bank claiming to operate, in its entirety, according to Islamic principles.The bank welcomes people of all faiths and is becoming increasingly popular with non-Muslims looking for an ethical alternative to conventional banks.

The bank states that it has five values Sharia compliant, community oriented, secure, good value and pioneering. Faith is an important factor for the bank, and accordingly branches briefly close on Friday afternoons to allow the staff to attend Jummah (Friday) prayers. The bank also has a Sharia department and an independent Sharia Supervisory Committee to ensure that its products are compliant with Islamic teachings.
As of 2017, Al Rayan Bank has serviced 77,000 customers.

History:

Islamic Bank of Britain was formed by a group of investors from the Middle East to take advantage of the growing market for Sharia compliant financial services in the UK. In July 2002, consultants and advisors were employed to confirm if such type of bank was needed and if it would be accepted by the Financial Services Authority, FSA.
Potential investors were invited, mainly from the Persian Gulf, who put together a private placement document which allowed the company to raise £14 million in start up capital by early 2003. In the same period, its first Managing Director, Michael Hanlon was recruited. Later that year, a draft business plan was proposed and formal application to the FSA was submitted.
By August 2004, the FSA granted authorisation of the bank,and subsequently led to the Islamic Bank of Britain becoming available to the public.

The ECB is an independent institution
The ECB has full control in implementing monetary policy in the European Union zone just like the Federal Reserve and the Bank of England. Just like other central banks, the ECB also has a main target in achieving price stability determined by the board members.
In addition, there are secondary objectives in the ECB's target, including a healthy labor market, availability of jobs and balanced economic growth.
More importantly, there are no specific provisions or benchmarks for inflation targets that can be changed by member countries' governments, although sometimes there are changes in these targets through discussion and opinion polls from member countries. Due to several factors, the ECB is somewhat more independent from the Federal Reserve and several other major central banks when it comes to inflation targeting.

The goal of the ECB
The ECB has formulated the issue of price stability with the aim of targeting consumer inflation below the level of 2% per year.
As mentioned, the main objective of the ECB is price stability and sufficient employment. Apart from that the ECB also aims to avoid excessive fluctuations in the value of the euro on the money market.

ECB Governing Council
The ECB Executive Council is the body that regulates and guides ECB operations to promote the achievement of objectives and fulfill its responsibility for economic stability in member countries.
The ECB Executive Council consists of the president, vice president and four other main members who are elected by the Council of the European Union.
The members of the Executive Council are elected and appointed based on recommendations given by the ECB Board of Governors and the European Union Parliament. The Executive Council also prepares and prepares an agenda for meetings with the Board of Governors in implementing monetary policy in accordance with the decisions taken by the Council.

ECB Reference Rate
At least the ECB is targeting three interest rates such as:
Deposit interest rate
refinance interest rate
marginal loan facility

ECB Board of Governors
Every change in monetary policy must be agreed upon by the Board of Governors, which is scheduled to meet at least 8 times per year. Apart from discussing monetary policy, this meeting also discussed the prospects and conditions of the global economy as well as other matters.
The ECB Board of Governors consists of the Executive Board and the chairmanship of 19 central banks from member countries. All the leaders of the central bank also took part in discussions on monetary policy.
Usually every quarterly period or 3 months, the ECB will discuss the prospects and inflation growth to see the economic conditions of the European Union

The European Central Bank (ECB) will increase its massive bond purchases to combat the impact of the Coronavirus. The central bank has committed to buying bonds worth 1.35 trillion euros, or the equivalent of US $ 1.5 trillion in bonds, an increase from 600 billion euros or the equivalent of US $ 675 billion. This move came after the German government approved a stimulus package of US $ 146 billion, equivalent to Rp. 2,044 trillion (exchange rate Rp. 14,000) to start economic recovery in Europe. New tax breaks and incentives for the purchase of electric cars were also offered.

"The combination of fiscal policy and monetary policy that is expected will be very important to restore economic conditions," said ECB President Christine Lagarde as quoted by CNN, Friday (5/6/2020).

Investors welcomed the policy as seen from the rise in the value of the euro by 0.6% against the US dollar (US). The ECB's decision to expand its bond-buying program is seen as an important step to keep money flowing through the eurozone and provide support for Italy, whose government debt could be under pressure. The forecast for the region's ailing economy has prompted policymakers to do more. The European Commission estimates that the gross domestic product (GDP) in the 19 countries that use the euro will contract 7.75% this year and set a record. The ECB expects GDP to shrink 8.7% this year.

"The incoming information confirms that the euro area economy is experiencing an unprecedented contraction," Lagarde said.

The ECB will get help from Germany. The government announced 130 billion euros in new stimulus spending, the same package as 3.8% of its GDP. In response to the 2008 financial crisis, Germany put up 2.5% of GDP. It comes on top of a previously announced aid package worth US $ 849 billion, although some of the unused funds will be extended.

"The fiscal response to the crisis is approaching. It is strong and decisive," said Bank of America Europe economists Evelyn Herrmann and Ruben Segura-Cayuela.

The big surprise was a temporary sales tax cut designed to increase consumer spending. Households will also receive US $ 339 per child. Meanwhile, US $ 28 billion has been given to small and medium enterprises. Berlin is also increasing investment in sustainable and digital infrastructure by US $ 56 billion. European stimulus efforts are expected to grow the economy. Germany and France have collaborated in support of the European Commission's proposal to raise US $ 846 billion on financial markets. About US $ 566 billion will be awarded to the member states of the European Union (EU) that have suffered the most from the pandemic. The new EU stimulus package of over US $ 612 billion is aimed at ensuring an equitable recovery across society.

"I really believe there is nothing like the economies of Germany, France, Spain, Italy or Sweden anymore. We are connected and this is why the German government is so supportive of the idea of two 500 billion euro packages to support the European economy," said Scholz.

Bank of America


INTRODUCTION:
The Bank of America Corporation (simply referred to as Bank of America, often abbreviated as BofA) is an American multinational investment bank and financial services company headquartered in Charlotte, North Carolina, with central hubs in New York City, London, Hong Kong, Dallas, and Toronto. Founded in San Francisco, Bank of America was formed through NationsBank's acquisition of BankAmerica in 1998. It is the second largest banking institution in the United States, after JPMorgan Chase, and the ninth largest financial services company in the world (by revenue). As a part of the Big Four, it services approximately 10.73% of all American bank deposits, in direct competition with Citigroup, Wells Fargo, and JPMorgan Chase. Its primary financial services revolve around commercial banking, wealth management, and investment banking.

One branch of its history stretches back to Bank of Italy, founded by Amadeo Pietro Giannini in 1904, which provided Italian immigrants who faced service discrimination various banking options. Originally headquartered in San Francisco, California, Giannini acquired Banca d'America e d'Italia (Bank of America and Italy) in 1922. The passage of landmark federal banking legislation facilitated a rapid growth in the 1950s, quickly establishing a prominent market share. After suffering a significant loss after the 1998 Russian bond default, BankAmerica, as it was then known, was acquired by the Charlotte-based NationsBank for US$62 billion. Following what was then the largest bank acquisition in history, the Bank of America Corporation was founded. Through a series of mergers and acquisitions, it built upon its commercial banking business by establishing Merrill Lynch for wealth management and Bank of America Merrill Lynch for investment banking in 2008 and 2009, respectively (since renamed BofA Securities).

HISTORY:

The Bank of America name first appeared in 1923, with the formation of Bank of America, Los Angeles. In 1928, it was acquired by Bank of Italy of San Francisco, which took the Bank of America name two years later.

The eastern portion of the Bank of America franchise can be traced to 1784, when Massachusetts Bank was chartered—the first iteration of FleetBoston, which Bank of America acquired in 2004. In 1874, Commercial National Bank was founded in Charlotte. That bank merged with American Trust Company in 1958 to form American Commercial Bank. Two years later it became North Carolina National Bank when it merged with Security National Bank of Greensboro. In 1991, it merged with C&S/Sovran Corporation of Atlanta and Norfolk to form Nations Bank.

The central portion of the franchise dates to 1910, when Commercial National Bank and Continental National Bank of Chicago merged in 1910 to form Continental & Commercial National Bank, which evolved into Continental Illinois National Bank & Trust.

Nedbank

Introduction:

Nedbank Group is a financial services group in South Africa offering wholesale and retail banking services as well as insurance, asset management, and wealth management. Nedbank Limited is a wholly owned subsidiary of Nedbank Group.
Nedbank's primary market is South Africa. Nedbank also operates in six other countries in the Southern African Development Community (SADC), through subsidiaries and banks in Eswatini, Lesotho, Malawi, Mozambique, Namibia and Zimbabwe, as well as offices in Angola and Kenya. Outside Africa, Nedbank have offices to provide international financial services for Africa-based clients in Guernsey, Isle of Man, Jersey, the United Kingdom and the United Arab Emirates. In 2014, Nedbank acquired an associate stake of 20% in Ecobank. The Nedbank-Ecobank Alliance is the largest banking network in Africa, with more than 2,000 branches in 39 countries.
Nedbank is headquartered in Johannesburg. Market capitalization was ZAR125 billion (approximately US$9.1 billion), as of June 2018.

History:

The bank was founded in 1888 in Amsterdam as the Nederlandsche Bank en Credietvereeniging voor Zuid-Afrika ("Dutch Bank and Credit Union for South Africa"). In the same year, the bank opened an office in Church Street, Pretoria, South Africa. In 1903, the company was renamed to Nederlandsche Bank voor Zuid-Afrika ("Dutch Bank for South Africa"). In 1906, the bank expanded and an office in London was opened. The bank split in 1951, renaming its South African counterpart as Nederlandse Bank in Suid-Afrika/Netherlands Bank of South Africa (NBSA). In 1969, the number of South African shareholders increased significantly and the company became 100% South African-owned after the Bank Mees and Hope sold 20% of its shares. The South African counterpart was completely independent. The Dutch counterpart of the bank no longer exists. Syfrets SA and Boland Bank listed on the Johannesburg Stock Exchange in 1969. In 1971, NBSA changed its name to Nedbank. Nedbank Group formed from the merger of Syfrets SA, Union Acceptances and Nedbank in 1973. In 1986, Old Mutual became the major shareholder (53%) of Nedbank.

In 1992, Syfrets, UAL Merchant Bank, and Nedbank Investment Bank Division merged to become Nedcor Investment Bank (NIB). Old Mutual, Nedcor's holding company, was demutualised and listed on the London Stock Exchange in 1999. It became a constituent of the FTSE 100 Index. Nedcor and Old Mutual joined in an offshore private banking venture and acquired the Isle of Man and Jersey private banking business of Robert Fleming & Co. in 2001.

The new Nedcor Group was formed on 1 January 2003, combining Nedcor, BoE, Nedcor Investment Bank, and Cape of Good Hope Bank into one legal entity. The Nedcor Group was renamed the Nedbank Group on 6 May 2005. As part of the managed separation, on 15 October 2018, Old Mutual reduced its shareholding in Nedbank Group to 19.9%.