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The MasterCard Financial Literacy Index brings in a lot of surprises about the financial literacy rate of various countries. The survey conducted among 12,205 respondents aged 18 – 64 in 27 countries across Asia/Pacific, Middle East and Africa (APMEA) between April 2013 and May 2013. As per the survey New Zealand is the most financially literate country in the Asia Pacific region. Second comes Singapore and Taiwan is third in Asia Pacific Region. This survey had three components and separate results were generated on the base of these three. In Basic Money Management New Zealand scored 77 points came as the top place Australia got the second place with 75 points. Third place went to Singapore. In this segment the worst performer is India that too in the last place with 50 points which is 5 points lesser than 2012. This result is solely for Asia Pacific Region. In Financial Planning the small country Myanmar topped the first place with 88 points they remained in the first place la...

The lowest rate of unemployment in the last 2 decades could be the real reason which helped Ms Angela Merkal to win the current elections as Chancellor of Germany for the consecutive third term. Her party, Christian Democratic Union won 41.5% votes against 25.7% votes of Social Democrats led by Mr Peer Steinbruck. But she is still in need of a coalition since she doesn’t have an absolute majority. The Chancellor seem to be the pet of Germans since she satisfied them with her strict measures she took on Euro-crisis, Libyan war, Syrian uprising. Her “ NO WAR” attitude was visible when she send a small troup of 8000 to Afgan rejecting the criticism of her allies and to keep an ok bilateral relationship with the US. She has shown her commitment towards her country by not giving away for the bailout demands of other European countries like Greek, Spain and Cyprus. She called for strict austerity measures in these countries which truly affected not only eurozone but other countries as...

The recent G20 meeting ended with a strong affirmation of regulatory functions on the top banks. The control on NBFC s has great importance since the bankruptcy of Lehman Brothers was the first indication of global economic crisis of 2008. The G20 leaders have given lots of attention on the issue of shadow banking and they have taken a decision to strengthen the regulation over the shadow banks. In the roadmap document to regulate shadow banks, International Organization of Security commission (IOSCO) will analyze the global hedge fund sector to the Financial Stability Board (FSB). FSB, the international body to monitor and recommend about the global financial system was established soon after G20 summit in 2009. Based in Basel, Switzerland the board members are G20 nations, FSF members and the European commission. FSB provides regular monitoring of shadow banking services. There are various procedures assigned to FSB and IOSCO, to keep the services of NBFC is on track. In the G2...

Bovespa going down by 18% in June 2013 indicates a lot when you read it along with the report that the Brazilian IPO s has given only losses to its investors since 2005. The rapid capital flight is keeping the country on the verge of a breakdown and internal issues as we witnessed during the Confederation Cup series. This is even influencing the global markets. As per June 2013 reports investors have pulled $1.5 billion out of emerging market bond funds. Brazil’s primary budget balance went down these years and the reasons behind the capital flights could be the excess domestic credit, and high loan-to-deposit ratio of 1.6. Brazilian banks which benefited from the once capital inflows are affected by these outflows, even the metal and mining sector are under threat. Investors foresee a hard landing of Chinese economy and the most capital flights are feared to occur by late 2013 and early 2014 and people are careful about the failing forecasts. As the Fed tightens the measures Chine...

North Block vs. Mint Road The home of Union Finance Ministry in North Block and the RBI HQ on Mint Road will have much more communication in the coming days. After the new RBI chieftain steps in with Himalayan tasks his prime duty should be satisfying the North Block which is answerable to the general public at many fronts. The political circle in Delhi never comes under the jurisdiction of the RBI chief and they may not be interested in understanding the worries of common man. So the toughest task will be keeping the balance between Finance ministry and RBI Strengthening Rupee Uplifting a currency which has gone down by 12% in the current financial year can’t be defined just as a tough task instead this is an uphill task. This depreciation does not purely depend on country’s internal and the external issues are not in the control of policymakers as well. The massive stimulus withdrawal has put not only India but all the emerging economies growths at stake. The RBI chief is not a...