What are the characteristics of inter-corporate deposits?


0

Characteristics of inter-corporate deposits market:

It may be interest to note the following characteristics of the inter-corporate deposit market:

 

Lack of regulation: The lack of legal hassles and bureaucratic red tape makes and inter-corporate transaction very convenient. In a business environment otherwise characterized by a plethora of rules and regulations, the evolution of the inter-corporate market is an example of the ability of the corporate sector to organize itself in the reasonably orderly manner.

 

Secrecy: The inter-corporate deposit market is shrouded in secrecy. The brokers regard their lists of borrowers and lenders as guarded secrets. Tightlipped and circumspect, they are some what reluctant to talk about their business. Such disclosures, apprehend would result in unwelcome competition and undercutting of rates.

 

Importance of personal contracts: Brokers and lenders argue that they are guided by reasonably objective analysis of the financial situation of the borrowers. However the truth is that lending decisions in the inter-corporate deposits market are based on personal contacts and market information which may lack reliability.


Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

6 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format