The Impact of the OECD Standard on the Swiss Banking Industry Dissertation

The Impact of the OECD Standard on the Swiss Banking Industry - Dissertation Example The developments were of strong influence in the actual economy and as the year 2008 came to an end the whole economy had gone through the ensuing crisis (Gugler & Siebert, 2007). Despite the fact that, the Banking industry was one of the most regulated industries within the country, the ongoing financial crisis could not be curbed. More often than not, the financial crisis uncovered different imperfections in international regulation. Before this crisis, the whole banking system had been assumed to be secured for as long as each unique bank satisfied the requirements in terms of capital reserves (Brissimis & Papanikolaou, 2008). This enabled it to absorb the upcoming negative economical developments. In many cases, one theory explains that it is sufficient in supervising the banks at a micro-level, and this supervision would prevent a crisis within the entire banking system namely at the macro level. This theory holds in a non-globalized or less globalized world (Brissimis & Papanik olaou, 2008). Consequently, the current globalised world quest for new requirements for the banking sector. The recent developments in the current financial crisis emphasize the need for international regulations within the banking sector. The financial crisis made the affected banks appear to act unfavorable making an adverse impact on the refinancing mechanism with other financial institutions. This meant that, during the crisis, banks were forced to increase their capital requirements so as to prevent their defaults and as well to fulfill the new capital requirements (Gugler & Siebert, 2007). As a consequence, the banks were forced to reduce their lending to other financial institutions. The shortage in interbank lending brought about a liquidity crisis within the whole financial sector. In this respect, it was extremely vital to coordinate new international regulations at a national and international level in order to strengthen the domestic and the international financial syste m( Gugler & Siebert, 2007). Additionally, the financial crisis made the public debt increase. Many governments were forced to bail out system relevant financial institutions (De Bandt & Davis, 2000). Different governments spend out a considerable amount of money to stimulate their economies. This forced many governments to reduce their governmental spending and at the same time generate new revenues (Molyneux & Thornton, 2004). Having the requirement of raising new funds, many governments including the US and EU, promoted the repatriation of cross border assets. Switzerland is one of the world leading financial centers in terms of offshore and international banking (Tyndale, 2009). As a consequence, the Swiss banking sector was targeted by these economies. Besides the financial interest of the EU and US, it is also vital to consider the legal aspect of tax management by Switzerland. It is also crucial that Switzerland was the main target as a tax haven by the EU and US (Iwata, 2004) . The Swiss law has in many instances made a distinction between Tax fraud and Tax evasion. Tax fraud has always been a crime in Switzerland. In contrast, tax evasion is not a crime in Switzerland. Specifically, the latter assist in explaining why the EU and the US put pressure on more transparency of the Swiss tax management (Jimenez, & Saurina, 2007). However, the EU and Switzerland pursued the interest of harmonizing their tax management. The loosening of the banking secrecy made the attractiveness of the Swiss banking

Knowledge mangemen assignment Essay Example | Topics and Well Written Essays - 1500 words

Knowledge mangemen assignment - Essay Example Of the numerous activities constituting the knowledge management process, the most commonly discussed is knowledge transfer or knowledge sharing (Al-Alawi et al, 2007). Hislop (2009) observes that in the first generation of knowledge management literature, organisational socio-cultural factors were marginalised, and were not taken into consideration. However, the significance of organisational culture in knowledge sharing behaviour has now been established. Employees’ motivation and willingness to share knowledge emerges from the organisational culture, which is defined as the shared, basic assumptions that an organisation learnt while coping with the environment and solving problems of external adaptation and internal integration, taught to new members as the right way to solve those problems (Park et al, 2004). Thesis Statement: The purpose of this paper is to investigate how organisational culture can influence knowledge sharing behaviour in the workplace. Organisational Cu lture Influences Knowledge Sharing Behaviour While the strategies and the technologies for knowledge management enable the proper channelisation and dissemination of knowledge, the culture of the organisation directly influences knowledge sharing among employees. Knowledge sharing is also related to the importance given to intellectual capital in an organisational culture. In a rapidly developing economy such as India there is considerable emphasis on intellectual capital in various spheres including organisational knowledge management. Cheema (2010) asserts that education in knowledge management is critical for organisational managers and human resource personnel, and their leading with knowledge helps the organisation to achieve sustained competitive advantage in the growing global market of today. The key debates and the various perspectives in organisational knowledge management begin with the origins of the study of knowledge, or its epistemology, argues Hislop (2009). The proc essing of knowledge within the organisation, and its connection to human motivation are also essential factors. Social and cultural issues particularly those pertaining to the workplace, play vital roles in knowledge management and in the sharing of knowledge. Organisational knowledge is of a collective and shared nature, and its different dimensions are reflected in the dynamics of knowledge production and dissemination. Further, knowledge processes pertain to conflicts and politics at the workplace , which are inherent parts of organisational culture. They reveal the ways in which knowledge and power are mutually related, states Hislop (2009). Each organisation has a distinctive culture which reflects the organisation’s identity both in the visible and in the invisible dimensions. The visible aspect of culture is found in the values, philosophies and mission of the company, while the invisible dimension is formed by the unspoken set of values directing employees’ act ions and approaches in the organisation, state McDermott and O’Dell (2001). The critical success factors in organisational culture that influence knowledge sharing included mutual trust between employees, with a high expectancy of reliability of the promise or actions of other individuals or groups. Only when there is trust do team members respond openly and share their knowledge (Politis, 2003). Further, top