Engl 080 : Compare And Assessment Answers

1. Write a fully referenced compare (similarities) and contrast (differences) essay - your topic choke

2. Usc a minimum of 5 sources articles mad in relevant weeks for summary/response journal could be used 

Banking system in India and Canada

India has fewer domestic public banks than Canada

While there are only 27 domestic public banks in India, in Canada, that number is 28 exceeding one. However, India has more private banks that Canada. When considering differences in population size, both are distinct lading to a more competitive banking environment. As a result of this competition, in the last years, Indian banks achieved more chances and subsequently had a lower stable financial system. Because of fewer public banks in India, its financial system is more concentrated than that of Canada.as much as they are highly concentrated, the Indian banks are consequently more diversified. With large expansion into wealth management, insurance levels, various depositors and loan, and also services involving brokerage (Bordo, Redish & Rockoff,2015).Because of the fewer number of banks in India, Indian regulators are much involved in every operation that the banks undertake. This is mostly in the form of capital needs and underwriting standards. This kind of scrutiny has played a vital role in helping banks in India to be more conservative based on the concept of risks taking.

The big 6 banks of Canada usually control approximately more than 86 percent of $3.944 trillion in terms of domestic assets. Typically, a small number of players such as the private sector banks in Canada has led to the development of a well-coordinated market. Banks level up in lockstep on pricing and evaluating each other efficiently for various changing strategies. A case in point is evident in current year account package involving plan pricing changes where all banks made a similar pricing step with a short span. The small number of banking market key players allow distinct regulators to make closer and strong relationships with banks (Baumann Hamin & Tung, 2012). Due to this concentration perspective, all regulators get to identify the risk policies and procedures. Politicians express dismay when interest rates on a mortgage in Canada so that it can be revised. Canadian regulators believe that owning a banking license is a privilege and not a mere right. It has around 649 credit unions.

Different regulations

The Indian banking regulatory environment has become more intrusive than that of the Canadian system. Canadian regulations usually tend to consider more on safety and soundness, while Indian system places their focus mainly on privacy, banking access, banker’s customer protection and also the aspect of anti-cash laundering. There also exist vital differences in mortgage lending. This is because interest on mortgages does not involve deductible tax in the Canadian system. In addition, interest terms are lower with higher down payments in a period of fewer than 29 days (Dash et al, 2011) Due to the pre-payment penalties existing, the Canadian citizens acquire a more speculative real estate propositions. The relationships between domestic banks and the available regulators are highly collegial. In Canada, the big 6 banks often cooperate on standardized setting leading to a decreased market entry and incurred costs.

For instance, 10 years ago, the market participants, public banks, and Canadian networks operated together and collaborated to create common business requirements for EMV. This developed the use of offline pin approach in Canadian banks. Indian banks still require the use of security protocols such as Triple DES (Deb & Lomo, 2014).

Different consumers

It's difficult to completely highlight the differences in banking without the overall financial system since it's a reflection of the prospective customers being dealt with. Canadians usually incur more cost in taxes but ultimately get higher universal benefits for example paid maternity, free healthcare, and minimal higher institution tuition rates. However, the cost of living in Canada is extremely higher as compared to the cost of living in India. In Canada there exist centralized average wage rates, leading to the development of reduced income inequality. This results in a healthier banking system that is optimally equipped to acquire increased economic stress. The Canadians pay off their mortgages faster than their Indian counterparts. In addition bankers in Canada are very cautious about using credit cards than in India.

International deals

Banks in Canada have continued to be strong international competitors. However, the Indian system is also looking internationally for continued growth due to a relatively small domestic banking system. Canadian banking has had an advantage resulting from international trade deals including the Canada-European trade agreement. This enhanced growth of new markets for its domestic banking sector. During the initial negotiations of the deals, some regulators disallowed foreign banks to set up various branches in Canada. They were needed to create subsidiaries since they would be easily regulated by the government entities (Jamaludddin, 2014).

India and Canadian banking systems are different in nature as a result of factors such as regulation, banker's mindset, and the existing customer base. Both systems have their benefits and both have contributed highly to the overall prosperity and development of the respective nation's economic level.

India banking system is typically classified into both scheduled and non-scheduled banks while that's not the case in India. Indian banks are perceived to have massive and transparent balanced sheets relative to other countries banking sector such as Canada. There exist banking codes and Indian standard boards that are autonomous and independent in monitoring the banking sector. During the year 2008, India initiated a cheque truncation device that converts cheque from physical to electronic form Jamaludddin, D. N. (2014). E-Banking: Challenges and opportunities in India (Kozhikode, & Li, 2012).

Similarities

Homeownership between India and Canada is similar. In both countries banking is regulated at both the federal and state level. The bank regulation in both states is more fragmented than other counties with mostly one domestic bank regulator. Such situations have contributed to the development of a patchwork of several standards.

Cash and liquidity management. Cash management in both India and Canada is currently in an evolution period.

Short-term borrowing. Overdraft facilities are available in both countries. It is annually reviewed and renewed automatically. The interest rates are charged at prime lending rates for lower level business entities (Lansbury, Kwon & Suh, 2013).

Central bank reporting. In both, foreign exchange transaction must be sourced through authorized domestic banks. International payments are usually done and significantly process by use of same bank networks in both countries. In both a certain service tax is applied to the provision of specified banking services carried out by the financial institutions. Residents are allowed to hold local currencies accounts outside Canada or India. Also, they are permitted to hold foreign currency accounts both inside and outside the respective countries (Malyadri & Sirisha, 2011).  Bank account opening in Canada and India follows a clearly laid out procedure requiring formal identification of the personal account. For example in India, consumers must be identified for each and every cash transfer of INR 50,000 across countries.

India and Canadian banking systems are different in nature as a result of factors such as regulation, banker's mindset, and the existing customer base. Both systems have their benefits and both have contributed highly to the overall prosperity and development of the respective nation's economic level. Both counties have widely adopted the banking technology.

References:

Bordo, M. D., Redish, A., & Rockoff, H. (2015). Why didn't Canada have a banking crisis in 2008 (or in 1930, or 1907, or…)? The Economic History Review, 68(1), 218-243.

Baumann, C., Hamin, H., & Tung, R. L. (2012). The share of wallet in retail banking: A comparison of Caucasians in Canada and Australia vis-à-vis Chinese in China and overseas Chinese. International Journal of Bank Marketing, 30(2), 88-101.

Dash, M., Mohanty, A. K., Pattnaik, S., Mohapatra, R. C., & Sahoo, D. S. (2011). Using the TAM model to explain how attitudes determine the adoption of internet banking. European Journal of Economics, Finance and Administrative Sciences, 36(1), 50-59.

Deb, M., & Lomo-David, E. (2014). An empirical examination of customers' adoption of m-banking in India. Marketing Intelligence & Planning, 32(4), 475-494.

Jamaludddin, D. N. (2014). E-Banking: Challenges and opportunities in India. Last accessed April, 24.

Kozhikode, R. K., & Li, J. (2012). Political pluralism, public policies, and organizational choices: Banking branch expansion in India, 1948–2003. Academy of Management Journal, 55(2), 339-359.

Lansbury, R. D., Kwon, S. H., & Suh, C. S. (2013). Globalization and employment relations in the Korean auto industry: The case of the Hyundai Motor Company in Korea, Canada, and India. In Employment Relations in the Asia-Pacific Region (pp. 19-35). Routledge.

Malyadri, P., & Sirisha, S. (2011). A Comparative Study of Non-Performing Assets in Indian Banking Industry. International Journal of Economic Practices and Theories, 1(2), 77-87.