Devendrakumar Rajendran - A Blog to Oracle Financials World

Thoughts experimented by empirical and hypothesis test Good Government will work out - balancing surplus and deficits in their fiscal budget. Best of Best governance do keep capital reserves and provisions. Reserve requirement is regulated by central bank of country. Central Banks should do well and good in this aspect to boost up businesses and economy growth Thumb rule of any business -liquid cash is inversely proportional to the solvency ratio. meaning any business organization should have potential to solve its liabilities at specific point of time and its convertible cash. Its a financial saying. But i always have a strong belief in my ancestors equation -liabilities affects love and personal relations Standard Deviation In a Business- numbers keep changing Y-O-Y, Quarterly or over the time period. It can be a sale revenue or drop, it can be a swing in margins or any other asset elements. I would always suggest to business finance to use spreads, outliers, plot d

Role of Banks in Economy Banking systems plays an important role in the economic world. Banks collect the savings of the individuals and lend them out to business people and manufacturers. Thus, Banks play a important role in creating new capital and helps country towards economic growth and development. Banks and financial institution have control over large part of money supply in circulation, and they can influence the nature and character of production in any country. Important functions of bank- Removing deficiency of capital formation In any economy, economic development is not possible unless there is an adequate degree of capital accumulation (or) formation. Deficiency of capital formation is the result of low saving made by the community. The serious capital deficiency in developing economies is reflected in small amount of capital equipment per worker and the limited knowledge, training and scientific advance. At this juncture, banks play a useful role