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Key reasons to Consider Restoring your Roof

To be able to achieve the desire of a lot of people would like to achieve in her life, here are a number of things you need to take into consideration to be able to achieve this. One of the key thing you need to take into consideration to be able to have good beautiful house is the roof of the house. It is advisable that you once in a while do the roof restoration or rather replacement because of the different roof restoration benefits that are involved. The roof restoration task is made easier thanks to the numerous roof restoration contractor that have come up in the modern world to meet the high demand for these services that have been created by the high number of homeowners desiring the many roof restoration benefits. Some of the major roof restoration benefits that should compel you to consider restoring your roof are given in the article below.

The first key roof restoration benefits is that it helps you in improving the beauty of your house and the value as well that may help you in the futures when you need to consider selling your house. Doing the roof restorations involves you remove the old roof that may be on your house that may be lowering eth value of our house because of the rust that may be on it and other factors, when you do the roof restoration, you are able to do away with this as you will be replacing the roof with a new good looking roof on your house that in turn help you in improving the beauty of your house and the value as well during selling o the house.

The other key roof restoration benefits is that it helps you in keeping you and your family safe. With an old roof, on your house, your family and your other household is at risk of many different harms like the roof may fall all of you a while in the house because of the nature of the roof as it may be weak to withstand a lot of different risks, there is also risk of the roof being broken when something falls on it that in turn make you at risk every time when you are in the house when you replace it you are able to eradicate these different risks and thus be rest assured that you are safe.

The other key roof restoration benefits are that it makes the house more heat efficient as the material that is used during this process helps in bouncing back the heat from the sun that helps in making the temperature of your house conducive. With the benefits given in the article above, you are able to make a wise decision of doing roof restoration in your house.

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Benefits Of Buying Used Cars

Other than your home, a car may be the most expensive asset one ever buys throughout their life. However, it does not have to be, now that there is the option of purchasing used cars as opposed to new ones. When a lot of people think about used cars, they picture rusting vehicles with prices that are almost giveaways. This, however, is an inaccurate picture, as there is a lot more to used cars than most people know. Today, you can find used cars that look almost new, the only differentiating factor between the two being the price. When given a chance to choose between a new car or a used one, the most logical option is going for the used one. In this article, we will be looking at some of the reasons why buying used cars is a better choice.

The first and most important benefit of going for used cars is that they are cheaper. When you compare a new car and a used car, you find that used cars are less expensive than the new ones. You can save a lot by opting for used rather than new. Some cars are even sold at half the price of the new ones. When given such an opportunity to save, you should take advantage of it. However, you need to ensure that the car you buy is in excellent condition because the quality is more important than savings. Inspect the vehicle you are about to buy thoroughly before you decide to pay for it. If your car dealer allows it, take it for a test drive to get a general feel of the vehicle. If the car is in good condition, there is no reason to let this opportunity pass.

Secondly, you get to avoid some of the fees charged by car dealerships when you opt for a used car rather than a new one. You find most dealers imposing fees such as processing fees, advertising fees, preparation fees, and many more. In most cases, these fees are directly related to the price of the car you are about to buy, which is why you find them being higher in new cars than in used vehicles. Buying a used car will help you avoid or lower many of the hidden fees charged by dealers.

There are also depreciation benefits to buying a used car. Used cars depreciate at a slower rate than new cars. Most new cars decrease in value by almost half of their price during the first year. You do not have to worry about this when you buy a used car. You also avoid mental depreciation when you opt for a used car as opposed to a new one. When most people purchase new vehicles, they are anxious about everything to do with the car. You find yourself unable to concentrate on a lot of things because you are afraid you parked wrong or may have done something to jeopardize the quality of your car. If you have already made up your decision about getting a used car, look for a good car dealer. The right car dealer should be willing to help you with financing if you are short on cash. When choosing a dealer, go for one who stocks a lot of makes and models from which you are to choose to avoid ending up with a car that you do not want.

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Factors to Consider While Finding a Kitchen Remodeler

One of the great things that you can think of is to remodel your kitchen. And so, if you are after remodeling your kitchen, you should ensure you identify the best kitchen remodeler who will cater to your needs as you might have desired. Since not all kitchen remodeler is the same, finding the best one to cater to your needs might be a very overwhelming task. This means that you will be required to first research through the internet to know the right information that will assist you in identifying the best kitchen remodeler. You can also think of reflecting on several essential factors. Through this article, you will be capable of knowing the right factors to consider while finding the best kitchen remodeler who will understand your needs.

Firstly, you are required to consider the location. The best kitchen remodeler is the easily accessible one. Since there so many kitchen remodelers out there, you should focus on identifying the one who is located near your area. Through this, you will find it easy to identify the best one that will cater to your needs as you might have desired. Finding a kitchen remodeler who is located in a distant area might take you a lot of time and more so your money. You will have to devote your time fully while finding the best kitchen remodeler, which is located in a remote area. Also, note that you will be required to adequately budget yourself with the required transport cost for you to fulfill your desires. For these reasons, ensure you identify a kitchen remodeler who is can easily access.

Secondly, you are required to consider the reviews. Not all kitchen remodelers are the same. Some have a good reputation, while others are not reputable enough. Therefore, if you desire to find the best kitchen remodeler who will meet your expectations, then you should ensure you identify the one who has a good reputation. Therefore, for you to know how reputation a kitchen remodeler is, you should go through the reviews of their past clients. A kitchen remodeler who has a good reputation will have positive reviews for the previous customers. You can also check on the work that the kitchen remodeler had done to his or her past client; thus, if you wish to find a kitchen remodeler who will assure you of the best quality services, the go for the one who has a good reputation.

Thirdly, you are required to consider the insurance and license. Before you identify a kitchen remodeler, you should consider if he or she is licensed. A reliable kitchen remodeler will have a legal permit from the state authorities. You should also ensure you identify a kitchen remodeler who is insured. This will be so beneficial to you since all the damage or injuries that might occur during the remodeling process will be covered by the insurance company. Therefore, if you reflect on all the outlined information that is explored in this article, you will be guaranteed to identifying the best kitchen remodeler.

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Universal Banking – Answer For The Best Banking Design?

1.1 INTRODUCTION

In recent years, universal banking has been growing its popularity in Indonesia. Mandiri Bank, for example, has taken strategy to become Indonesia’s universal bank; this bank has also initiated to develop an integrated financial risk system in terms of sounding financial performance and increasing shareholder value. In Germany, and most developed countries in Europe, universal banks have initiated its operations since nineteen century. There is mounting evidence that in those countries, universal banks have taken an important part in the development of real sectors and the financial system. In those countries, the growing numbers of universal banking practices are really supported by the regulation of central of bank.

Despite, in The United States, they are strict to regulate universal banks by blocking commercial banks from engaging in securities and stock markets practices. They argued that the practice of universal banking might be harmful for the financial system. ((Boyd et.al, 1998) cited in Cheang, 2004) The “risk” might be the key reason why the central bank of The U.S is worried about the universal banking system. Since, if the central of bank allowed banks to adjust their operation to be universal banks, the relationship among, banks, financial and stock markets would be closer. Consequently, this would give an uncertainty to the banks condition and performance. For example, if there were a disaster in stock market, banks would get problems in their financial positions. Thus, they would tend to be insolvent.

In addition universal banks would also threaten the market share of other specialized institutions, because more customers would choose universal banks that offer more option to their investment. Hence, more specialized institutions are likely to be ruined in the U.S financial industry.

One majoring factor, which is triggering a bank to be universal bank, is to increase the profit by enlarging their market share. According to João A. C. Santos (1998) universal bank itself can be defined as the financial institution, which enlarges its service range in terms of offering a variety of financial products and services in one site. Thus, by operating universal banking, banks could get a greater opportunity to expand to another financial area, such as : financial securities, insurance, hedge funds and etc.

Although the trend of banks has recently tended to universal banks, it is undoubtedly true that universal banks would also face further risks because a wide range of financial services is strongly associated with increasing risks and escalating monitoring costs. These are the major concerns why banks have to implement more advance technology in terms of financial risk management. Moreover, the practices of universal banks would cause significant risks to economy’s payment system. Since, the operation of universal banks connects closely to the financial and stock markets that are very fluctuate in a short term.

To win in the tight competition among financial institutions, banks have to alter their maneuver to lead in the market. Universal bank could be the wise choice for the bank manager, because they can attract more customers with a wide range of services. Furthermore, by altering their operation to the universal banking system, banks would get benefits from the efficiency and economies of scale.

In order to understand about the universal banking practices, this paper would examine the exclusive matters, which related to the risks and benefits in a universal bank. Moreover, this paper would also focus the whole impact of this institution to the financial system and the economy as a whole.

1.2 PROFITS AND COSTS IN UNIVERSAL BANKING: IMPLICATIONS FOR INDIVIDUAL BANKS

General problem related to financial intermediation, include universal banks and another type of banks, is about asymmetric information . It is the main problem that causes costs to increase and influence the performance of financial institutions. In Universal banks, the problems that would increase are slightly different with specialized banks; they are similar in that they should cope the risks problem associated with their financial position. Although, in universal banks, the risks are more bigger due to the wide range of financial instruments that they organized. Therefore, banks have to increase their spending on monitoring costs that are more complicated than specialized institutions or conventional banks.

Possible answer why more banks sacrifice to the escalating risks and transform it operation into the universal banking is that they want to compete and expand their market share, in order to seek a greater opportunity profits by serving more choices to their customers. Many banks has experienced a great performance after they alter their operation, the main concerns are that they could reach better economies of scale which can reduce the amount of spending in operational costs and also a greater opportunity to get more profits. The research finding which was conducted by Vender, R. (2002, cited in Cheang, 2004) about the efficiency of revenue in financial conglomerates and the level of both profit and cost in universal banking, has proved that both financial conglomerates and universal banking contain good performance in several indicators of bank profitability. His finding also suggests that the sustained expansion of financial conglomerates and universal banking practices may increase efficiency in the financial system.

This opinion is strengthen by another experts, like : George Rich and Christian Walter (1993). They state that universal banks which posse benefits over specialized institutions, are able to take advantage of reduction in the average cost of production and scope in banking. It is essential for banks that operate on a international level and in order to fulfill customer needs with a variety of financial services. They also mention a classic example how universal banks in some countries, such as : Switzerland, Germany and more European countries has experienced benefits by operating universal banking. In addition, they also state that the fear if universal bank would threaten specialized institutions has not proven. In Switzerland and Germany, for example, specialized institutions could achieve a better improvement in terms of cooperating with big banks. Universal banks are one of potential market channel which can sell their products directly to the customers, so specialized institutions also get additional return due to the increases in the number of universal banks. Therefore, this proves that universal banks do not threat other institutions; in fact, they support specialized institutions to market their products.

According to Fohlin, universal banking would lead to a bank’s concentration due to the increases the number of branch. Based on Germany’s experience, such branching-based expansion has led to the efficiency in banking because it could increase economies of scale in advertising and marketing, and open an enormous opportunity to enhance diversification and steadiness for banks.

A universal bank has unique position to tackle asymmetric information. As stated by Joao A. C. Santos (1998), that a universal bank has potential benefits on the reduction of agency cost and acquires profits due to information advantages. Although in other sides, universal banking also face problems related to the cost, conflict of interest and safety and soundness. But the default risk, which is generally happened in financial intermediation, would decrease substantially because universal banks are easier to control over their customers. Most of lenders in universal banks are their customers, so they can understand about the capacity of the customers from the information that they gather.

Nicholas Cheang (2004) also points out how universal banks could reduce a crucial problem in financial institution, asymmetric information. He argued that they could preserve a close relationship with their borrowers, by gathering more relevant information to make an important decision for investment. Their advantageous positions also vital to optimize the distribution of fund allocation, because banks have already known which investment that would give more margins to them. So, they don’t need to worry too much about the risk.

1.3 UNIVERSAL BANKS AND THE STABILITY IN THE FINANCIAL SYSTEM

Financial institution plays a vital role in terms of mobilizing funds in the economy. Consequently, stability in financial system is really important to manage by government in order to prevent wider implications to the real sectors. Financial disasters which happened in most countries in Asia in 1997 are the classic examples how importance to save banks to recover the economy.

As the financial supermarkets, which are handling a variety of financial instruments, they must face a greater risk than specialized institutions. As a consequence, this institution needs to be monitored closely in order to prevent more implications to the economy. According to Benston (1994), the escalating risks in universal banking would lead to a great problem because it can cause generous distress in the financial system. Hence, it will greatly increase the risk to the economy’s payment system. In another term, Rime and Strioh (2001) who examine the financial system in Switzerland in which universal banking are becoming more important in this country, state that difficulty in monitoring large universal banks is a major concern. This is the reason why universal bank has to spend more money in monitoring cost and develop an advanced system in information technology. In other words, it could say that the consequence of inefficient monitoring could lead to financial instability. (Cheang, 2004)

A wider range of universal banks in financial system makes the fund channels of banks to the customer are larger than specialized institutions. So, the economy will improve because universal banks will support more funding. This can be seen by the fact that a universal bank practice in Germany has triggered the progress of some enterprises performance in this country. (Stiglitz, 1985). It is understandable that when the allocation of fund can distribute widely and effectively to the potential enterprises, the economy will improve. In this context, universal banks have played as the key institution which mobilize fund to the potential lender.

Edwards (1996), has also proved that a universal bank is not just significantly contributed to economy from the external funds that they provide, but also from the improvement of the information flows. (cited in Cheang, 2004) Therefore, this proves that universal banks have played a significant role in terms of reducing the default risk by providing important information about the lender or customers. Furthermore, the safety of the financial system would be improved by the existence of universal banks.

1.4 CONCLUSION

The development of universal banks has to in line with the policy direction of central bank, because it is important to keep the stability of financial system and the economy as whole. There are three important areas that must be concerned related to universal bank operations, such as : the strengthened of capital and advanced risk management system. Consequently, in order to manage universal bank, people need to be aware about the unique of the risk type in universal banking. Furthermore, policy maker must also consider about the implication of universal banks in financial system.

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