Archive for the ‘Financial institutions’ Category
The use of credit cards that allow you to “fill their pockets” and increase Chile’s debt. Some experts even talk about that could mimic the financial crisis that hit U.S. consumers and that caused the sub prime crisis we all now know. But on the track with the national reality, the truth is that politicians have expressed concern about this issue.
Socialist Senator Jaime Naranjo and Carlos Ominami presented a project to curb the high debt in which they cause in Chile as the two lowest income quin tiles allocate in 2006, 67.10% of their income to pay debts.
According to the Superintendence of Banks and Financial Institutions to March 2008 total card debt amounted to U.S. $ 9,385,000, of which 6530 million related to commercial firms and U.S. $ 2,855,000 to the banking institutions.
Of this debt, approximately 24% are in arrears, which is about 2180 million dollars. Of this amount, 1885 million related to commercial firms (86.5%) and 295 million dollars to the bank plastics (13.5%).
This project aims to prohibit senators commercial house and bank and financial institutions issue credit cards and without consultation. That is, only able to provide the type of card when someone has shown a willingness to apply.
The initiative also provides credit cards to prevent minors without written permission from their parents. Meanwhile, according to the National Institute of Youth, Injure, 1.2 million young people between the year 15 and 29 are outstanding.
A financial institution is one of the entities that make up the financial system. Financial institutions are commercial banks, central banks, mortgage corporations and / or savings and housing, stock markets, etc. A financial asset is the right of the possessor to receive the issuer’s future cash flows.
Is a document that creates obligations and rights, On behalf of the sender (a person who issues or “sell” the document) creates an obligation to fulfill a promise to pay the amount agreed · For part of the holder (person who bought the document) generates a right to receive such payments. The concept of financial asset, very briefly, is associated with two fundamental concepts in finance. A profit or yield concept and a concept of risk.
The holder of an active course looking for benefits, getting more money for himself, and runs certain risks such as loss of interest or even loss of capital invested, if things are not as good as they should be. Financial assets are generally of two types 1. Shares or any part of a business. 2. Debt (government bonds and private sector = ON) One of the most important financial asset is somehow allowing the risk not to concentrate on one type of fixed asset investments. A person who has money available, can be easily diversified their own activity to the purchase of other financial assets, and ultimately also the risk by diversifying their businesses in general. Maintains its core business, adding the possibility of having other income from other commercial or financial activities.
A financial market is a place where no physical or financial assets are traded. Main attributes of a Financial Market:
• Allows the pricing: A market includes various forms of pricing. For example, pricing in a loud voice, as used in the Stock Exchange or the Securities Market, or electronic and telephone trading (MAE).
· Provides greater liquidity: If there is a refuge or a place where we have the possibility of certain transactions with several operators and not having to search through our own means at our party.
• Low transaction costs, to be sufficiently developed financial markets, transaction costs are reduced significantly.