How best to improve competition in the banking market Essay - 1

How best to improve competition in the banking market - Essay Example In most cases, application of the efficient structure hypothesis is projected in two primary ways depending on the nature of efficiency considered. When considering the X-efficiency form, the more efficient organizations have relatively lower costs, which results to higher profits and a larger share market. According to WISE, BLINDER & GORDON, (2001), this is true because of presence of superior ability in diminishing production costs. On the other hand, Scale Efficiency form serves the same purpose as the X-efficiency, since it works towards achieving production to the minimum average-cost point. Relationship between quiet Life Hypothesis and efficiency structure If quiet life hypothesis holds, then it implies that, the positive profit structure association is partially offset by cost increase from poorer cost efficiency, which explains why the profit-structure association is weak in numerous banks. A unified approach based on the both quiet life hypothesis, structure hypothesis can be used to define the degree to which competition, and stability in the banking sector is influenced (WISE, BLINDER & GORDON, 2001). ... Relationship between quiet Life Hypothesis and efficiency structure If quiet life hypothesis holds, then it implies that, the positive profit structure association is partially offset by cost increase from poorer cost efficiency, which explains why the profit-structure association is weak in numerous banks. A unified approach based on the both quiet life hypothesis, structure hypothesis can be used to define the degree to which competition, and stability in the banking sector is influenced (WISE, BLINDER & GORDON, 2001). Structure Conduct Performance The SCP studies of banking universally can be subdivided into two primary groups according to the measure of performance (JOHNSON, 2003). The groups include the use of measure of pieces of some banking products and service in order to capture the firm’s performance. The second involves the application of profitability measure such as return on assets or equity. Nonetheless, using the piece of a single product may be misleading sue to the multi-product nature of a bank’s output. On the other hand, profit measure may be more informative, however may exhibit difficulty in comprehending and interpreting due to the complexity of the accounting procedures. Relationship between QLH, ESH and SCP The relationship between market structure and performance treated within the framework of structure-Conduct –Performance (SCP) explains well, the competitive status of a banking system. The SCP closes relates with that efficiency Hypothesis (JOHNSON, 2003). When Efficiency Hypothesis is applied in a banking sector, the hypothesis defines that a bank, which operates more efficiently than its competitors achieve higher gains that results from low operational costs.

Climate Change Research Paper Example | Topics and Well Written Essays - 750 words

Climate Change - Research Paper Example This issue is extremely important because it can cause a lot of damage to human beings if nothing is done about it in the future. It can have life-threatening ramifications should nothing be done about it immediately. Methane is another very important greenhouse gas, large quantities of methane is produced by domesticated animals which again directly affects the environment. Coal mining and oil drilling are other activities which produce methane in abundance; these activities are done on a daily basis producing unimaginable quantities of methane. These important things must be understood to be really able to restore the normal climatic conditions, there is a lot of pollution everywhere these days, the most populated countries like India and China release alarming amounts of harmful gases each day, this must be put to an end soon to ensure that there are no calamities in the future. â€Å"Electricity is the main source of power in urban areas. All our gadgets run on electricity generated mainly from thermal power plants. These thermal power plants are run on fossil fuels (mostly coal) and are responsible for the emission of huge amounts of greenhouse gases and other pollutants.† (Causes of Climate Change) â€Å"Much of the world’s economy is underpinned by carbon – the ‘fuel’ in fossil fuels. ... Deforestation is certainly one thing which we must refrain from doing, there are other activities like mining, running air conditioners the whole day and so on, these activities release harmful gases into the environment which in turn cause climate change. It is high time to reduce these activities gradually so that we do not face the wrath of Mother Nature. ii. Carbon dioxide emission can be drastically reduced by using solar energy and LPG, LPG is being used in some countries and some others use solar energy but it is important to cut down the carbon dioxide emission otherwise it is all doom and gloom for us. iii. The most important thing is to ensure that Co2 emission is reduced drastically, the next important thing is to ensure that no deforestation takes place. Cutting down on methane is also very important. Other things include cutting down on wastage like running air conditioners for fewer hours so that it emits harmful gases for a limited hours. These things can bring about a lot of positive changes. iv. â€Å"Climate change may result from both natural and human causes. The importance of human causes has been increasing during the past few decades.† (Global Warming Facts) Global warming and climate change are very closely related concepts; the depletion of the ozone layer is expected to cause a lot of damage. Skin cancer is one of the biggest fears should the ozone layer be depleted further. â€Å"Livestock lead rice-growing, gas-flaring, and mining in global emissions of this highly potent greenhouse gas. Options for reducing methane emissions go beyond reducing beef and dairy consumption. These mitigation strategies also include reducing methane emissions from mines, gas production facilities, and