Conceptually, we can think of the fiscal deficit as a measure of the extent to which a government is spending beyond its means. In precise mathematical terms, fiscal deficit is the difference between the total expenditure of the government, and sum of all its "revenue receipts" as well as those "capital receipts", which do not create any payment obligations for the future. Revenue receipts constitute regular streams of revenue that do not have future paymant implications.
Svereign debt crisis means the sovereign government's borrowing from domestic and external markets is in excess of its capacity to repay, resulting in loan defaulys requiring rescheduling of loan or bailout package from other countries or multilater institutions such as IMF.
Money laundering by banks and insurance companies is more widespread than earlier thought, another expose by an online news website has revealed. This development is bound to force banks to undertake a fresh round of verification of the identity of almost all account holders, an exercise called 'Know Your Customer'.
In any bankig system, loans or assets created by lenders are divided into several qualiative categories. In simple language, the categories reflect how good pr bad an asset is in terms of the possibility of default in repayment of loan from a borrower. This practice is known as "Classification of Assets."
Offshore banking unit (OBU) is the branch of an Indian bank located in a special economic zone (SEZ), with a special set of rules aimed at facilitating exports from the region. As laws define it, it's a '"deemed foreign branch" of the parent bank situated within India, and it undertakes international banking business involving foreign currency denominated assets and liabilities. The concept comes from the practice prevalent in several global finacial centres. Here an OBU can accept foreign currency for business but not domestic deposits from local residents. This was conceived to prevent competiton between local and banking sectors.
The US seems ready for another round of quantitative to boost growth, employment generation and consumer spending. There is consensus among economists and policymakers in the world's largest economy that the Federal Reserve should target a higher level of inflation to spur growth.