'Australian banks have remained very sound by international Research Paper

'Australian banks have remained very sound by international standards,despite the global financial turmoil' observed the IMF, and impact on Australian Bank - Research Paper Example It is apparent that if a residential mortgage shock is joined with corporate losses, it will definitely harm banks. Local reports on Australian banks performance indicated that a stress test is based on a worse case scenario that would categorize other banks in the world in the same position (IMF 2010). In fact, it is argued that although such observations from the IMF stand to be correct, Australian banks were believed to obtain considerable aid from taxpayers and the Reserve Bank. Besides, it is argued that Australian federal government helps banks in events of crisis. Overall, reports have indicated that the Australian banking system was resilient during global financial crisis due to intensive supervision and regulation. Although, the four major Australian banks capital ratios are place below global average for large banks, their conservative approaches in implementing Base II framework indicates that their headline capital rations underestimate their capital strength. The major financial soundness indicators that these banks concentrated on include profitability, capital adequacy, asset quality and provisioning, and liquidity. On particular, the Australian banks’ loss given default rates are arguably higher than those of several other countries. Additionally, higher risk weights were endorsed for certain residential mortgages. Moreover, reduced risk weights, which are allowed in the Basel II framework’s standardized approach, were introduced for retail lending (IMF 2010). Nevertheless, the risk weighted assets numbers can not be comparable across nations. All in all, due to APRA’s conservative eligibility and deduction rules, Australian banks have a propensity of holding higher quality capital. According to RBA, in regard to Basel III requirements, banks will need to hold more and higher quality capital. In light with this, the Australian banks can be argued

Socio-cultural Influences on Consumption Japan Speech or Presentation

Socio-cultural Influences on Consumption Japan - Speech or Presentation Example Shintoism and Buddhism are the major religions in Japan. Some people practice both, as the religions complement each other in many ways. Coming to the language, Japanese is official and widely used, even in case of business communication. Interpreters do the translation in case of language-handicap experienced with overseas business clientele. They expect their language to be valued, even while using it for business, promotional or packaging purposes. People are respected by age and the ancestors are worshipped in Japan. Extended families consisting of uncles, aunts and grandparents were of common occurrence until recent years, when the hike in real estate prices made nuclear families more feasible. However, all the relatives meet up during festivals. Thus, the consumption pattern of the consumers have changed based on the variations in the family structure. Food is an essential part of Japanese culture. The head or the eldest or the most important person is allowed to start the meal first. Soup is an accompaniment, rather than being a starter and slurping noodles even in formal meetings is usual. Japanese remain communicate less while eating, because mealtime is meant for enjoying food. Their food philosophy is of total well-being, termed as Shokuiku. Brief cereal breakfasts, packed or bought lunches and detailed dinners with family are common (International Markets Bureau, 2010). Japanese consumers hold certain taboos, which need consideration in understanding their behavior. Saying ‘no’ is not of common practice in Japan. Pointing anything with chopsticks; usage of number ‘4’; white shirt, black trousers and black suit; exchanging food with chopsticks, etc., remind them of death and funeral and thus, these gestures must be avoided (kwintessential, 2004). Harmony and cooperation are the values that are promot ed in Japan. Education, home and business settings revolve around working with others, being polite even in case of disagreement and learning to live in collaboration. Thus, the societal norms in Japan are community oriented. Diligence and empathy are part and parcel of their behavior, which places the thoughts and feelings of others, before one’s own (Kogler, 2006). People assist others who need their help, by putting aside their own job at hand and they feel embarrassed when they are not in a condition to do the needful. This again reflects the emphasis on consumer service orientation and apt response to command and authority of the employees in the nation (kwintessential, 2004). The code of conduct for businesses in Japan essentially emphasizes courtesy, compassion and consideration. Maintaining a business card in Japanese, exchanging it on important occasions and treasuring those extended by the others form a part of this protocol of reverence. While attending a business gathering, everyone is expected to look well-groomed, formal and be punctual (kwintessential, 2004). Establishing long-term business relations is preferred to immediate