The Changes in Interbank Lending Rates in China, India and Switzerland

Introduction Interbank lending is a market that exists among the banks, and it is all about banks lending money to other banks. Banks usually lend out money to other banks, but the terms of the loans are usually short term. The maturity period for the loans lent to the banks is usually one week. When one bank lends a loan to another bank, it usually charges a certain interest rate which is dependent on the period to maturity.Advertising We will write a custom essay sample on The Changes in Interbank Lending Rates in China, India and Switzerland specifically for you for only $16.05 $11/page Learn More The interest rate charged is referred to as the interbank rate. At times, banks get in situations whereby they do not have adequate cash to satisfy the demands of its clients. In such a situation, the bank has to obtain a loan from another bank to satisfy the clients. On the other hand, a bank may have excess liquid assets to the extent that it can lend out the cash and earn an interest from the assets. Such banks lend money to other banks (Navarro, 2011). Over the last one year, the interbank rates by the central bank have been reduced significantly in Europe, Asia and India. This article will discuss the changes in interbank lending rates in the continents mentioned. A country from each of the continents is to be investigated in the article. The countries to be investigated are China, India and Switzerland. Central Banks in Europe, China and India The central bank plays a significant role in regulating the economy of a nation. When the economic growth slows down, the central bank lowers the lend rates so as to increase the flow of money to speed up the economy. This causes the inflation rate to increase. In the recent years, there have been a slow down in the economy which has hit most parts of Europe and America. It has also affected other parts of the globe such as India, China and also Japan. It has been reported that, for the fir st time since 2009, China has experienced a low growth rate in the manufacturing sector (Davis and Orlik, 2011). In the effort to counter the slow growth rate in the economy, China central bank lowered the cost of lending so as to boost the economy. The central bank of china has the reserve requirements for the banks (The Economist Newspaper Limited, 2012). The action by the China Central bank came at a time when the same measures were being taken in Europe. The European Central bank also cut down the lending rates in the effort to ease the borrowing burden by the other banks. The European Central bank together with the Bank of England started taking actions to lower the cost of dollar loans to the European countries (The Economist Newspaper Limited, 2012).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Several central banks in Europe lowered their lending costs. The Swiss National bank wa s one of the banks that took measures to lower their lending costs and also took measures to weaken their currencies. Despite lowering its lending cost, the Swiss National Bank has accused other banks such as the European Central Bank and the Japanese bank of causing too much influence on the interbank lending cost. It accuses them of spreading the influence to other nations. The London Interbank Offered Rate is the one that sets the benchmark for lending rates by other banks in Europe and it is being accused of influencing these rates too much to benefit itself (Vaknin, 2012). In India, the economy slowed down, and it grew with the lowest rates for the first time since the year 2009. This had substantial effects in the central bank and the other banks as well since it became difficult for them to lend out money due to the high rates which scared borrowers. In the effort to improve the economic growth in India, the central bank took measures to lower the interbank lending rates. At the same time, it allowed international supermarkets into the country. This step was criticised by politicians since it brought too much competition in the internal market. Lowering the lending rates to the bank increases the growth rate and hence the Central bank of India was trying to boost the economic rate by lowering the interbank lending rates (Lucarelli, 2011). Conclusion The banking crisis that hit most parts of Europe happened due to financial crisis, which started in the year 2007. In most parts of the world, the economic growth slowed down causing an economic recession. Banks went short of funds to meet the demands of their customers. The financial strains made it difficult for countries in paying the loans they acquired from other banks due to the high lending rates. As a result, central banks took action to lower the interbank lending rates in the effort to rescue the banks and also to boost the economic growth which had slowed down. This did not achieve too much. Some countries have regained their economic strength, but others continue to suffer from the economic turbulence that was experienced. The government leaders need to embrace good economic policies to avoid the occurrence of a financial crisis. Reference List Davis, B. Orlik, T. (2011). China’s Move Shifts Growth to Top of Agenda. WSJ. Web.Advertising We will write a custom essay sample on The Changes in Interbank Lending Rates in China, India and Switzerland specifically for you for only $16.05 $11/page Learn More Lucarelli, B. 2011, The economics of financial turbulence alternative theories of money and finance. Cheltenham, Edward Elgar. Web. Navarro, A. 2011, Global capitalist crisis and the second great Depression: egalitarian systemic models for change. Lanham, Lexington Books. The Economic Newspaper Limited 2012, Business this week. Web. Vaknin, S. 2012, â€Å"Bankers’ Banks†: The Role and Functions of Central Banks in Banking Cris es. Web. This essay on The Changes in Interbank Lending Rates in China, India and Switzerland was written and submitted by user Helen Lamb to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

How to Deal With Someone Threatening You With a Weapon

How to Deal With Someone Threatening You With a Weapon If you come face-to-face with someone threatening you with a gun, knife, or any  other weapon, there are steps that you can take to make the situation less dangerous. Stay Calm The most important thing to do will probably be one of the most difficult things to do, and that is to remain calm. Remember that you will need all of your mental facilities to increase your chances of gaining control of the situation, and if you are in a state of hysteria, it is unlikely that you will be able to maintain mental clarity. It is likely that the person holding the weapon on you will not be calm and if you exhibit high anxiety, there is a good chance it will increase their anxiety. Screaming can be particularly dangerous in this type of situation because it can cause the assailant to panic or anger them. Remaining calm can have the opposite effect. Make Eye Contact It may be difficult to believe, but many criminals who pull weapons on people have the ability to mentally dehumanize their victims. If you make eye contact, it makes them view you more as a human being and less like a disposable object. Figure out the Assailants Goal There are certain common scenarios that result in having a weapon pulled on you. If the purpose is to kill you, then you would likely already be dead. Mass killers enter schools, places of employment, malls, etc., and just start shooting either randomly or with predetermined goals such as shooting at specific a group of people. Most criminals who point a gun without shooting it hopefully do not want to shoot it. Their goal may be to rob you for money,  to buy drugs, a car for a joyride, hold you hostage to get out of a crime gone bad or kidnap you for money. Most of the time in these types of situations the weapon is being used to control you, not necessarily to kill you. Follow Instructions Calmly You want to follow the instructions of the person who has the weapon but do not do it without communicating what you are about to do. For example, if they ask you for your wallet, before reaching into your purse or pocket to get it, say to them what it is you are about to do. Then do it slowly and calmly. Do not make it appear that you have any other intention other than to do what it was that you told them you were going to do. Do Not Challenge Them If you have always wanted to be a hero, now is not the time to do it. Not only could it cost you your life, but it could also cause harm to others. Being physically or verbally aggressive to the person with the weapon will do nothing but ignite the situation. Trying to grab the weapon will likely get you killed or seriously injured. Resisting their instructions will not only anger them, but it will also force them to show who is in charge. What you want to communicate to them is that you plan on cooperating. Talk to Them, but Carefully If you have an opportunity to engage the assailant in light conversation, try to direct the conversation so that they talk to you about themselves and subtly feed their egos by making them feel that you think what they are saying is intelligent and has merit. Not only are you trying to connect to their human side, but you also want them to believe that you do not feel you are superior to them. If you do get into a conversation, keep your voice low and your sentences short. Ask questions and avoid talking too much about yourself. They want you as their audience, not the other way around  if there is an opportunity to inject something short and personal do it. For example, if they say what high school they went to, you may want to ask them if they knew your friend who went to the same school, even if that friend does not exist. If a controversial subject comes up such as politics or religion, this is not the time to get into a debate. Appear interested in their opinion and if asked, tell them that you can tell they know a lot about it and you can see their point of view. Remember What the Assailant Looks Like Try to notice what the person holding the weapon looks like, but do not stare at them and rather than trying to figure out their weight or height, pay attention to something that is distinguishable, like a tattoo, gang symbol, birthmark, moles, and scars. Being Held Hostage A hostage situation has different dynamics than armed robbery. If, for example, you work at a bank where a robbery attempt has gone bad, and you are being held hostage, do as you are told and remain very quiet. Your goal should be to appear as invisible to the person holding the gun as possible. If you see a chance to escape do it, but only if the probability of your escape being successful is high. If the assailant is negotiating with the authorities and you are chosen as one of the hostages to be released- go. It may be hard to leave your fellow employees or friends behind, but you staying behind will do nothing to improve their situation. It will simply anger and frustrate the person telling you to go. Remember that in hostage situations the police are probably making plans for your rescue and your best chance of survival is not to be the main focus of the assailant. You want to try to position yourself as far away as possible from them as possible. If the criminal is talking with a hostage negotiator and the talk breaks down, the next step might be that sharpshooters start to take aim. You want to avoid being grabbed as a human shield or inadvertently shot by a flying bullet. Distance away from the guy holding the gun is the best way to go. When to Stop Cooperating Unfortunately, there is no way to say for sure that any of these suggestions will keep you alive. Paying attention to your common sense and instincts will ultimately be your best chance of survival. However, there are times when doing everything a criminal is telling you might not be the way to go, but again there is no cookie-cutter instruction book to follow. Carjackings can be particularly perilous if the carjacker insists that you remain in the vehicle or instructs you to drive. Any diversion that you can think of to avoid this situation could increase your chances of survival. Carjacking victims have pretended to faint outside of the car. Others who have been forced to drive have driven into poles or parked cars in well-populated areas, but again every situation is different, and you must rely on your own ability to access the situation and try to find the best way out. After the Ordeal Is Over After the ordeal ends and if the police are not on the scene, call 9-1-1 as soon as possible. Notifying the police quickly will increase the chance of apprehending the suspect and preventing future victims. Provide them with as many details as you can and be available for follow-up interviews.