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Twenty years ago, it was easy to classify companies such as Ryder/P-I-E, Consolidated Freightways and Yellow Freight System as less-than-truckload carriers: simply put, that was the type of freight they [...]

American-style finance has become the global standard in the 1990s. This model, which emphasizes value-driven markets and governance through institutional investors, has allowed US banks to re-emerge as a dominant force in international banking. This financial model, however, is not necessarily applicable to other countries such as Japan since it emphasizes profit maximization at the expense of customer relationships. The better way to restructure Japanese banks would be to flatten institutional hierarchies while keeping costs low and customer relationships strong.

Futures market participants are divided over the professional markets provision in the proposal to deregulate the futures industry. Although brokers, locals, commodity trading advisors and futures commission merchants (FCMs) agree that the provision will trigger change, they have differing opinions regarding the idea of professional markets. While futures exchanges want decreased regulation and a similar treatment as over-the-counter markets, market users are concerned over what might take place under these pro markets. For their part, bank-owned FCMs and wire houses laud the provision for the lower margins and new product line it will bring., The professional markets provision in the proposal before Congress to deregulate the futures industry has stirred opinions from every industry party imaginable. Some applaud it, some blast it, some are [...]

South Korea's plan to introduce substantial financial reform measures may fall short of expectations. The Presidential Commission for Financial Reform has made several recommendations, including the creation of an integrated financial regulatory body, the reduction in bank loans to chaebols and the withdrawal of government support for troubled banks. Pres Kim Young Sam instructed legislators to prepare a bill based on these recommendations. However, the reform package announced by the Ministry of Finance and Economy has been watered down significantly., Despite encouraging noises hinting at substantial financial reform, Catherine Lee in Seoul reports that the reality could prove to be something of an anti-climax The 35 members of the Presidential [...]

A review of the extent to which member states of the Organization for Economic Cooperation and Development have liberalized, deregulated or re-regulated the financial services industry reveals that considerable improvements have been made. Efforts have mostly been successful in eliminating factors contributing to market inefficiencies, removing barriers to trade in financial services, and tightening prudential oversight., I. Introduction and overview The purposes of this paper are to review the extent of regulatory reform (liberalisation, deregulation and/or re-regulation) in the financial services industry in the OECD area; [...]

Asian countries have generally been more successful than African countries in liberalizing their financial systems. However, this simple comparison cn be misleading. Financial reform was implemented much earlier in most Asian countries than in Africa. In addition, the macroeconomic environment in Asia was far more favorable when governments started introducing reform measures. In the generally successful Asian countries, reforms were pursued while balance of payments and fiscal deficits were manageable and inflation was relatively low. The situation was markedly different in Africa, where a number of countries have attempted to implement financial liberalization in an environment of ongoing inflation, largely as a consequence of excessive fiscal deficits. Comparison of the experiences of the two continents suggest that if financial reforms are to succeed, they must be implemented in an appropriate macroeconomic, financial and institutional environment.

South Korean Deputy Prime Minister and Minister of Finance and Economy Han Seung-Soo claims that the government is currently analyzing possible ways to boost the international competitiveness of the country's financial industry. One of these ways calls for the simplification of procedures, namely, the liberalization of interest rates on a gradual basis, to inspire mergers and acquisitions among financial entities. Korea is determined to make these economic policies work amid decreasing growth, unstable prices and worsening balance of payment.

The banking industry's successful transition into the securities services arena could be aided by an outright repeal of the Glass-Steagall Act during 1995. This Depression-era Act's Section 20 firewall restrictions, revenue limits, and capital adequacy requirements are opposed by banks and bank holding companies. Banks have lost many corporate customers to securities firms and investment banks, but repealing Glass-Steagall could help the banking industry to compete by offering more services.

If the Glass-Steagall act is repealed by Congress, as is likely, banks, brokerages and even insurance companies will look more and more alike. The battle for turf in the financial [...]

A replication exercise was conducted on the Cecchini microeconomic approach to determine whether the methodology will promote economic gains in the European Free Trade Assn.'s financial services sector. Results show that the approach, which stresses that microeconomic gains can be realized through the removal of trade barriers and increased competition, can lead to inaccurate and irrelevant economic gain estimates.

South Korea's Finance Min. Park Jae-yoon is determined to expose the country's financial sector to increased competitive pressure. He has already announced several sweeping measures intended to speed up the liberalization of the country's financial market. One of the most important changes to be introduced by Park's financial reforms is the change in bank ownership. For instance, under the revised Banking Act, shareholders will have to limit their shareholding of a bank to just 4% to 8% if they also hold substantial shares in other businesses., Sweeping financial reforms will expose banks to foreign competition, and the wind has started to blow. Park Jae-yoon is a determined man. The newly-appointed finance minister aims to reform South [...]

The Quebec courts have not supported deregulation for financial services as shown by decisions for the disposal of Cooperants Mutual Life Insurance Society. The Court of Appeal interpreted contracts as annuities, while the Superior Court found that deposit administration contracts were not annuities because they were not insurance contracts. These decisions go against the direction of federal legislation to give institutions liberal access to new financial activities.

Head office involvement is very important in the development of new financial products, both in terms of the quantity and quality of this involvement. Long term strategies should be dealt with by head office, leaving shorter term tactical considerations to be dealt with at local level. It is also important that management strategies be proactive rather than reactive, especially if there is a danger of business being poached by other companies in the field, as happened, for example with the setting up of a credit card arm by Marks & Spencer.

Insurance products now need to be changed often, because the industry has become more competitive, a trend which means perceiving opportunities and using assets in a different way. This includes moving towards assets with higher risks and rates of return, and involves new managerial strategies such as improved coordination between marketing and technical sides of a company and a leadership with a marketing vision. The development of new products will mean technical problems will need to be overcome, but the long-term future of companies depends on meeting the challenge of the new conditions in the market place.

Reflecting the increasing economic interdependence between the OECD countries and dynamic Asian economies (DAEs) as well as the large number of common interests between these two groupings, OECD interest in [...]

"A bum?" asks the caption below a picture of a man sporting a scruffy beard and clad in jeans, a rumpled jacket, and sandals. "A billionaire," answers the caption when […]

The government of Malaysia wants to establish Kuala Lumpur as a financial centre, but red tape and protectionism are keeping out foreign financial institutions. Public and private capital is needed to sustain the growth of the maturing economy, which cannot be maintained by domestic supply alone. The government must decide how to accelerate liberalisation without damaging local industry.

South Korea is deregulating its financial sector in an effort to become one of the members of the Organization for Economic Cooperation and Development (OECD). The OECD has recommended that South Korea reform its financial system to strengthen links between the country's segmented market and global financial markets. The Bank of Korea has lowered its reserve requirement ratio in Apr. 1996 and the finance and economy ministry has eased foreign exchange controls. However, inflation and the widening trade deficit is a cause of concern among policy makers., South Korea is following the recommendations of the OECD and liberalising its financial market in order to join the club of wealthy nations. Bidding to join the Organisation for Economic [...]

Banks need to strike an acceptable balance between risks and costs. One way to accomplish this would be for banks to actively manage their compliance activities by integrating them into existing sales, marketing and product development programs. Another way to achieve this balance would be for banks to correct the misallocations of effort and resources that occur during the compliance process., Taking a New Look at Your Institution's Compliance Efforts, Including the Resources and Money Spent, May Yield Improvements in the Overall Process A search is on for balance in banking [...]