Financial Safety Advice

Having personal finances sorted, it is always a necessity for everyone.
Many times, personal finances are not exactly a very tidy, which means that many live with a cost structure that can be chaotic. But this can not be permanent, as it will only lead to a path of debt and expenditure on aspects perfectly cut. This means that personal finance should be ordered, allowing us to have clear accounts, to have a good time in the present and future alone.

In the event that you are in the case of a cost structure that exceeds your income so loose, you must have to do something similar to a policy shock, similar to economic adjustments so in vogue these days.

The first point of this program sort of personal finance is something that would even common sense, but often is not: stop spending more than you earn. This phenomenon is more common than it seems, given the numerous incentives to spend around the individual, but spending at all, will end only with work to pay the debts. Like any plan of adjustment, it is recommended that can put together a budget, to be clear how much money, how much money does it take to daily spending and how much you have to occupy to pay debts and loans. In establishing the fee structure may be clear what you need to pay and consume a budget.

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* Banks
* Non-bank credit institutions, financial companies, Savings and home loan, credit unions
* Insurance and Reinsurance Companies
* Stock Market
* Private pension funds
* Financial Groups
* Business related financial services, factoring, general stores, warehousing, leasing, credit bureaus
* Payment Systems
* Deposit Insurance
* Financial Safety Net
* Financial Crimes
* Money Laundering

The preparation of financial legislation has included the drafting of bills for central banks, national committees and superintendents, and laws to establish the main rules of the game for the actions of the various actors in financial markets, in terms of capital entry, limits to major risk operations and sanctioning system, thus seeking the necessary legal stability of the market, leaving the monetary authorities, banking, insurance, securities and pensions, the legislative discretion to establish mechanisms aimed to achieve a true, complete and timely information on public transparency, monitoring compliance with limits on risk operations and managing the sanctions regime. We have participated in these activities in Bolivia, Costa Rica, Chile, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Tanzania and Uganda. Read the rest of this entry →

It is no secret ongoing abuses committed by companies against domestic consumers, abuse that seems endless and, unfortunately, has been increasing. The National Institute for the Defense of Competition and Intellectual Property Protection (Indecopi) reported that in the period April 2009 – March 2010 the Citizen Service Centre (SAC) handled a total of 13.205 national claims of the 43.5% which was in Lima and Callao, and 56.5% in other departments.

Of the total of claims that came to the regulator, 59.7% of claims are concentrated in just five economic activities, of which Banking and Financial Services recorded 3.965 claims. Thus, this sector is again, where they make more consumer abuse, either by misleading advertising, improper, among others.

Previously, the university professor ESAN, Miguel Martin Mato, warned of the oligopoly that exists in the local financial market, where three four banks control more than 70% of the sector. According to the specialist, the bank concentration is detrimental to consumers in this sector also avoids that there is greater competition among financial institutions on behalf of users.

Martin Mato said that only the lead bank controls 37% of the market and the three largest banks, 75% of system deposits. “Rn any other country in Latin America there is such concentration indices as in Peru,” he asked. Read the rest of this entry →

An extremely important aspect in the management of credit risks, is related to risk analysis and review, and the classification of customers.

The quality of the portfolio of loans is the credit risk, which depends primarily on two groups of factors:

- Internal factors that depend directly on its own administration or ability of executives from each company.

- External factors that are independent of management, such as inflation, unanticipated depreciation of local currency, climate disasters, etc.. here appears as a major state basic macroeconomic balances that jeopardize the payment capacity of borrowers.

This risk is measured by net credit losses.

Among the internal factors we can list the following:

Loan volume: the higher loan volume, the greater the losses for them.

Credit policies: the more aggressive credit policy, the higher the credit risk.

Mix of credit: there is much more concentrated lending by companies or sectors, the greater the risk you are assuming. Therefore it has been determined that only 20% of the assets of a financial institution can lend itself to an economic group or person or entity, in order to safeguard the health of banks and financial institutions.

Geographic concentration: economic, number of debtors, economic groups and each group shares: therefore there is no doubt that any kind of portfolio concentration increases the risk of a financial institution. Read the rest of this entry →

The goal of many people earlier this year is to have enough capital to go on holiday with their families, to the pitching of a car, to just have a cushion for unforeseen expenses, etc.. But it is a goal that few people actually succeed.

To achieve this we must follow three simple tips, as put into practice these tips will get keep the money you are going to know what I use and you can give a more satisfactory to you and your family.

1. Plan your spending: the main action have to do is know the amount of expenses you have on your income. To know list expenses and fixed income and do not forget to write the famous so-called ant expenses such as coffee, cigarettes and tips, because although small expenses, adding them in a month insurance is substantial.

2. Designates the amount of money you will save: once you know when you enter and spend you know which area you can reduce consumption. View this as a fixed expense and write it in your budget, saving is not the leftovers if you agree to set aside. For example, decreases the cost you spend on entertainment and avoids many expenses ant.

3. Secure your money: to keep your money safe it is best to use financial products offered by banks, as in a savings account, a capacity or promissory notes with interest payable at maturity.