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Banking in the United States Versus Europe

Banking in the United States Versus Europe

Banking in the US and Europe are two rather different things, and that’s something that has become more evident in recent years. Following the financial crisis of 2008, the banks got together, and there was the news of coordinated central bank action intended to support European banks that were looking to access loans in dollars. That action highlighted one of the main difference.  European Banks are more willing to use short-term borrowing to fund their work compared to a US bank.

The reason for this is that there are more banks in Europe compared to the USA. Having more banks is a good thing for consumers because there is more competition, and more options. In some European countries, there are even a lot of competitors to traditional banks, in the form of the national Post Office, as well as Building Societies, Credit Unions, and more. Even some supermarkets have their own banking facilities which may be supported by a traditional bank, but act as a different band.

European Banks have loan to deposit ratios that are bigger than their U.S rivals, and they need to fund their operations through borrowing, because in the USA there are just a handful of monolithic banks, but in Europe there are dozens of options.

Indeed, in Europe there are lots of people that don’t have bank accounts, and that don’t rely on credit cards. They use prepaid cards by brands such as PaySafe to do their online transactions. If they have a bank account facility at all it may be a ‘basic’ one that allows for the receipt of payments and then allows for the withdrawal of cash via a no-charge ATM (using a bank with an ATM is far more convenient than having to deal with a teller). They do not use contact-less payments, they do not use online subscriptions, or if they do they rely on other products to handle such transactions.

The results of the US banks, in recent years, shows that there has been a shift in power away from Europe to the US banks, and their combined market values tend to show more financial well being than the US banks. Those banks look forward to more growth, especially now that the Trump administration is promising reduced regulation and higher growth. The European banks are facing uncertainty with Brexit looming and it causing questions over the future of the Euro-zone. This means European borrowers could be facing tighter limits on loan amounts, and less open access to credit as time goes on.

Accounting – Careers, Services And Techniques

If you talk about accounting, there are many different things to deal with, including the various accounting careers and how people can get the good benefits of accounting services. Some possible examples you can learn more are such as about financial accounting services, tax accounting career, environmental accounting career and also the financial accounting techniques. Accounting is basically the most important part in any business field and it entangles many different aspects to consider.

The first thing we will discuss is financial accounting services. Basically, this is a service available for everyone who needs help to summarize their financial data which is taken from various sources, mainly the organization`s accounting records. In this case, the summary should be published and it will bring the benefits for people outside the organization too. The summary of accounting process comes in the form of annual reports and it will need a particular period to finish the process.

The financial accounting services require the complete preparation and it is about collecting the financial statements from the related parties, such as the stockholders, banks, employees, suppliers and also government agencies and owners. Besides, the financial statements from other stakeholders are absolutely needed. In a simple explanation, we can say that financial accounting services are needed to achieve the three main purposes: to meet the regulatory requirements, to produce some general purpose of financial statements and also the good help in taking the decision for next planning and the best performance evaluation.

After you understand the general definition above, you probably need to find the details of another matter which actually becomes a part of financial accounting, which is about tax accounting. When it comes to talking about the career in such field, people have to learn very well and understand what tax accountant mostly deal with. In this case, the tax accounting career is a career where someone (tax accountant) will help businesses or even the individuals to file their taxes. This job is probably simple, but the fact is not like this at all.

Choosing the tax accounting career is a decision where someone will be ready to help clients to get the after-tax income as high as possible. The financial accounting techniques (particularly tax accountant basic principles) will be applied in the most suitable way. However, the tax system is currently getting very complex and the tax accountant is mainly asked to follow the tax law while trying hard to bring the best client`s advantage at the same time.

In short, the two careers above have the strong relation. But, the next career is probably less familiar to you. The environmental accounting career is less popular than the two previous careers, but it does not mean that people cannot get opportunities from such thing. Only a few people have come to the good awareness that the environmental accounting career is a choice which brings a big impact. It is not about figuring out the best ways to get impressive profits, but the matter of analyzing the external and internal factors of environment, the costs and some potential effects to human life in general.