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Showing posts from March, 2020

Recession and Deposit Insurance

Deposit Insurance system made to protect bank depositors. It is for paying in full or part debt when due if banks have a disability to pay. It promotes financial stability. According to the IADI, as of 31 Jan 2014,  113 countries have instituted some form of explicit deposit insurance up from 12 in 1974.
Why it exists  Banking system is prone to a bank run due to a broad spectrum of harmful events, including economic recession. Deposit Insurance avoids insolvency of banks by the withdrawal of depositors.
How it works Deposit Insurance is a protection cover to depositors if bank fails and does not have money to pay to its depositor.DICGC is a wholly-owned subsidiary of RBI which insures all banks deposits for the limit of 5 Lakh per bank.If bank goes bankrupt, depositor will receive only 5 Lakh inclusive of principal and interest amount.

Global Impact of Coronavirus

One doomsday scenario in which the coronavirus outbreak could cost the global economy up to $2 trillion this year. After $2 trillion shortfall in global income, COVID-19 affects oil-exporting countries and also other commodity exporters badly. China might recover from COVID-19 impact by lending as China is a crucial source of long term borrowing for developing countries. 
COVID-19 has brought global recession by depressing global annual growth this year to below 2.5%, the recessionary threshold for the world economy. Central Banks are not in a position to solve this crisis alone. Their macroeconomics policy will need public investment and targeted welfare support. At present scenario, coronavirus has surpassed 100000 confirmed cases worldwide, it will make the impact more severe to the global economy.

Tele Marketing to Ecommerce Market

When the world has upgraded the entire business to online marketplaces. It enables for having adequate knowledge of e-marketplace in order to availing service as well as selling products and services in online markets.
As an online feature of every industry is information sharing and receiving it works similar to on-call market of earlier business model. And it works on displaying technology. The most of displays are banner ads, promotional videos, sponsorships, classifieds and directories. Although getting lead generation through mobile and email marketing industries opt-out common marketplaces in order to go without high technical expertise. Display ads spending has become $256 billion in 2019 from $143 billion in 2014.