Friday, January 31, 2020
Cash Rate and Bank funding Essay Example | Topics and Well Written Essays - 1000 words
Cash Rate and Bank funding - Essay Example Long term debt funding is a relatively expensive source of funding than equity finding. This resulted in the rise in funding costs for major banks and consequently they were forced to increase their housing loan interest rates relatively more than the rise in cash. RBA have also accepted this fact and considers the existing spread as new normal standard spread. Table of Contents Table of Contents 3 Cash Rate – An Overview 4 Major Banks’ Funding and Costs of Funding 5 Pricing for Risk and Variable Housing Loan Rates set by Banks 6 Standard Variable Housing Lending Rates and Spreads 8 Conclusion 10 References 11 Bibliography 12 Cash Rate – An Overview Reserve Bank of Australia (RBA) uses cash rate as a tool to control the pressure of inflation in Australia. RBA targets to keep the inflation rate in and around 2% to 3%. This refers to the monetary policy followed by RBA. RBA’s monetary policy also includes curbing unemployment rate and assuring a stable econo mic growth of the country as its other objectives. When the inflation rate goes beyond the target of RBA, the cash rate is enhanced. Otherwise RBA tries to reduce the cash rate when it feels that inflation is not posing a great threat and Australia can have a faster economic growth. Since 2007, there has been a steady growth or hike in cash rate till the beginning of Global Financial Crisis (GFC) during mid 2008, when the cash rate was 7.25%. Starting from September 2008 to September 2009, in one year the cash rate fell drastically to 3% figure. This was done by RBA to help Australian economy recover from the effects of GFC. Next from October 2009 onwards, the cash rate shows a steady increasing trend (Graph 1). Present cash rate is 4.25%, which is constant for the last 5 months (Reserve Bank of Australia, n.d.). Graph 1 Source: (RBA, 2012, p.18) Major Banks’ Funding and Costs of Funding The funding bases of Australian banks are diverse. The primary sources of funding for the major banks in Australia are: a) Deposits, b) Short term wholesale debt, c) Long term debt and d) securitization. Prior to GFC, the major banks had a stable funding mix. However, GFC had an adverse effect on the costs of funding of the banks derived from different sources. Since 2007, the major banks have shifted their focus away from short term debt and securitization. The funding mix now is composed of greater percentage of deposits and long term debt (Graph 2). It is so because they are considered to be relatively safer sources of funds. However, these being relatively expensive sources of funds, the cost of funding have increased considerably relative to the cash rate and money market rates relevant to it (Brown, et al., 2010). Graph 2 Source: (RBA, 2012, p.30) Pricing for Risk and Variable Housing Loan Rates set by Banks Risks involved in lending housing loans to the borrowers are an important consideration for banks in determining the variable housing loan rate. Since 2007, t he spread of banks’ lending rates on all the loan products offered by them relative to the cash rate have increased (Graph 3). The increase in these interest rates varied across different types of loans depending on the banks’ perception about the credit risk of the borrowers and the pace with which each type of loan can be re-priced
Thursday, January 23, 2020
What Documents To Review At A Closing For A Mortgage :: Mortgage Closing Documents
What Documents To Review At A Closing For A Mortgage Three important mortgage documents 1.     Mortgage 2.     Note 3.     HUD-1 Settlement Statement Mortgage †¢Ã‚     People who sign only have an interest in the property and our not responsible to pay for the loan †¢Ã‚     Make sure the correct legal description and address are listed †¢Ã‚     Gives the rights of the mortgage company o     Usually very standard †¢Ã‚     Secures the note †¢Ã‚     Gives the lender a claim against the home if you fail to live up to the terms of the loan Note †¢Ã‚     Those who sign the note are responsible for paying the mortgage and their credit will be effected (positively and/or negatively) by the loan †¢Ã‚     States the interest rate o     Fixed o     ARM loan and how often the interest rate will change †¢Ã‚     States the loan term o     How many years the loan is o     A prepayment penalty will be listed if applicable †¢Ã‚     States the late charge amount o     A percentage of the principal and interest †¢Ã‚     States the principal and interest of the payment o     The escrow amount is not stated †¢Ã‚     States the payment is due o     Check with the lender if there is a grace period †¢Ã‚     States the loan amount †¢Ã‚     Promise to repay the mortgage †¢Ã‚     States what the lender can do if you fail to make payments HUD-1 Settlement Statement †¢Ã‚     A detailed list of all costs related to the sale of the home †¢Ã‚     A precise record of the settlement costs †¢Ã‚     Both buyer and seller sign Helpful Tips †¢Ã‚     Have an attorney present that represents you and you only †¢Ã‚     You have a three day rescission period †¢Ã‚     Review sections 900 and 1000 of the HUD statement if you sign for an escrow †¢Ã‚     At closing you have the opportunity to make last minute changes †¢Ã‚     Bring any documents that you previously received to the closing and refer to the documents at closing †¢Ã‚     Check to see if there are any back taxes on the property o     Once you sign off on property those taxes are your responsibility Explanation of the HUD-1 Statement BUYER’S RECAP Line 101 is for purchases, purchase price would go here. Line 102 is for any personal property that is included with sale on purchases only. Line 103 is Total for Page Line 104 and 105 are for Mortgage Payoffs. Lines 106 thru 112 are items that buyer has agreed to pay for in advance. Line 120 is the total of all charges to buyer. Line 201 is money deposit given by buyer Line 202 is new loan amount Line 203 is for existing loans buyer will assume or pay to seller. Line 204 thru 209 is for misc. credits to buyer as agreed to up-front. Lines 210 thru 219 are for credits to buyer from seller for taxes, etc. Line 220 is total credits to buyer Line 303 is difference due to or from buyer.
Wednesday, January 15, 2020
Retaining the HR Function Essay
Introduction This report is to the executive directors and will be outlining the importance of retaining the HR function within the business. I will be explaining how HR activities support the organisations strategy and how HR professionals support line managers and their staff. HR is essential to the smooth running of the business. HR is there to ensure that the company do not have a high turnover of staff and that training is given to employee. HR is essential to help the company meet its targets, and ensuring that the company complies with legal requirements including Health & Safety. How three HR activities support the organisations strategy Recruitment Recruitment is co-ordinated by the HR department and is a major factor on how your business recruits the right type of people to carry out the tasks required. HR will in this instance start from the beginning and advertise for the positions to be applied for, HR will also screen and interview the right type of candidates required and then Induct them once the candidate is successful in getting the position. This is a time consuming job which the department that HR are recruiting for will not have time for and can spend their time concentrating on their departments. HR are responsible for sending out the necessary letters and paperwork to the candidates. Disciplinary’s / Grievances Disciplinary’s are usually completed due to a employee mis conduct or absence related. The HR team usually monitors all absences and would notify the line manager of any concerns. HR support the line managers by attending these disciplinary meetings and advise on the best course of action to be taken, HR are also responsible for ensuring the necessary paperwork is completed for the disciplinary to take place. Grievances are dealt with by the line managers also and again HR is responsible for ensuring that grievances are dealt with fairly and equally. Induction The HR department are responsible for inducting all new employees who enter into the business. Inductions are quite important in how the new employee fits into the business and responds with the demands and the business strategy. All new employees should be inducted with the practices, policies and procedures and the culture that the company operates in. This will allow the new employee to familiarise and settle into their role with how the business works, this should help keep the employee retention level quite low. The induction process done ‘effectively reflects the employer brand and the values the organisation is promoting. It is important, therefore, to ensure that the induction process reflects the values and culture of the organisation’ (CIPD, 2014) Three ways HR professionals support line managers and their staff Performance management The HR function here will provide you with the best way to maximise the potential of your employees. If you have underperforming employees HR will be able to help you get the maximum out of them. The process is ‘performance management’ during this period the employee will go through a set of meetings to discuss their performance shortfalls. if after reviewing the shortfalls the HR department are able to advise of the further necessary steps to take e.g. disciplinary, warnings etc. HR are there to support the managers carrying out the meetings and advising of the best way forward. Legal The HR function for the business in a legal matter would be to ensure that the organisation activities are complying with legislative requirements i.e. pay increase, working time regulations. HR would have to know the employment law to a degree in this way HR would act as an advisor for the company. We may also be making a decision on some occasions depending on the circumstances surrounding the issue or speak to the line managers on further training. more importantly HR are responsible for keeping records e.g. disciplinary, absences, training, ‘as these good records can afford real protection for employers and managers who may need to defend their actions at a tribunal or In other courts’ (Martin and Whiting, 2013). If the company fails act accordingly to the legal requirements they could possibly face claims, and also the last instance close down the company Training HR is responsible for the training aspect of the business, if a department identifies the need for a training requirement they will notify the HR department. The HR departments responsibility would be to find how the training is going to be given out, i.e. external or internal If external training is required HR who have to find a company who deliver the training and find out the necessary information. This may include costs, venue, duration. HR would also draw up the relevant training contracts so that the company would not lose out financially if the employee was to leave once they had received the training. Conclusion To conclude the above points which I have mentioned, the HR department is an integral part of the organisation and is essential in meeting the business strategy. As you can see from the report without the HR department the business cannot function properly, by reducing the size of the HR department you may ultimately affect other parts of the business and the strategy as whole. This may lead to an increase in employee retention and legal costs in the form of claims, tribunals etc. The examples of the parts of the business given above where HR is essential are a few and many more functions within the business need the HR department. The HR department are also their to support employee’s and for them to come and see and speak to someone in private and confidential nature this helps with employee relations. With the help of the HR department employees within the organisation are being given the necessary training. These employees who are given the opportunity of progress with the company are more devoted to meeting the business need and most of all the strategy. REFERENCES CIPD. (2014). What is an Induction. Available: http://www.cipd.co.uk/hr-resources/factsheets/induction.aspx#link_2. Last accessed 04th December 2014. Martin, M. and Whiting, F.. (2013). Human Resource Practice. 6th ed.. CIPD.
Tuesday, January 7, 2020
The Differences Between Religions And Islam - 2358 Words
Toby Fernihough Form III: RS Lent Assessment Living as a Jew and a Muslim Table of Contents Similarities and differences between the two religions The Importance of Places of Worship to the Respective Religions How Places of Worship help to Dispel Prejudice How the Religions Impact the Societies in which they are Present in Being a believer of these religions Being a member of the religion in modern-day Britain Examples of discrimination Conclusion Similarities and differences between the religions Judaism, Christianity, and Islam are the three major monotheistic religions of the world. They share a common heritage and are related in many ways. However, there are also major differences between the religions. The major similarity between these three religions is that they are all monotheistic. This means that they believe in only one God. Furthermore, many people would say that they all believe in the same God. Since they are the only three major religions in the world to believe in monotheism, this is a very important similarity. Because the three religions believe in the same God, they also believe in some of the same scriptures. Only Judaism does not believe in the scriptures of either of the other faiths. The holy book of Judaism is the Tanakh, which corresponds closely to the Christian Old Testament. Christians believe in the authenticity of the Old Testament, but they believe that the New Testament is also the word of God. Muslims believe in theShow MoreRelatedTaking a Look at Islam and Judaims777 Words  | 3 PagesIntroduction Apart from Christianity, Islam and Judaism are two of the most influential religions in the world, particularly in the Middle East. Although Judaism is not as large as Islam, it has impacted on the world in a profound manner. 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