Economies based passage for bank exams

Friends, Here we come up with Economies based passage for bank exams, PO, CLERK etc as we all know the level of banking exams has gone up, so we need to prepare according to it. So this article for Editorial and vocab has been taken from ET.

Editorial with vocabulary topic- Banks seek CBI & CVC’s help before stake sales

Economies based passage for bank exams

Banks reportedly want the Central Bureau of Investigation (CBI) and the Central Vigilance Commission (CVC) to clear deals before carrying out stake sales in stressed companies.

This is absurd. This desperate desire to pre-empt any subsequent charge of wrongdoing is unworthy of professional bankers and an indictment of the system as it operates today.

The solution is not to load the CBI and the CVC with the task of vetting asset sale proposals and, thereby, compromise their ability to investigate any malfeasance that might come to light later.

Banks worry that a defaulting promoter whose assets are put on the block after a haircut could buy back the assets at a discount through some company that fronts for him.

The solution is to make a transparent market for assets being sold. If that market is sufficiently competitive, the bank will get the best price possible and the identity of the buyer should not be an issue.

It is imperative to make the process more transparent. This, in turn, calls for a functional and deeper market for stressed assets. Commercial decisions entail loss as well as gain.

The government must abjure a culture that views every loss-making decision with suspicion. State-owned banks must also offer market-linked compensation to their managers. It is ridiculous that their salaries are a fraction of what their peers in the private sector earn.

The salaries of executives who take decisions that expose banks to risk while offering the possibility to generate profits must be linked to how well their decisions pan out over time.

Part of their remuneration must be variable pay linked to performance over a three-year period. A still larger part could be in the form of stock options. Aligning incentives is the solution, not buying insurance from the CBI and the CVC.


Important words from the Economies based passage for bank exams-Editorial :

  1. absurd:(adj)-  
    1. अनर्गल
    2. अनर्थक
    3. अयुक्त

    wildly unreasonable, illogical, or inappropriate., 

    (Noun) विसंगति  an absurd state of affairs.
    “the incidents that followed bordered on the absurd”
  2. indictment:
    indictment
    ɪnˈdʌɪtm(ə)nt/
    noun
    1. 1.
      NORTH AMERICAN
      a formal charge or accusation of a serious crime.
      “an indictment for conspiracy”
    2. 2.
      a thing that serves to illustrate that a system or situation is bad and deserves to be condemned.
      “these rapidly escalating crime figures are an indictment of our society”
  3. vetting:
    1. जाँचना
    2. भली प्रकार जाँच करना
    vet1
    verb
    gerund or present participle: vetting
    1. make a careful and critical examination of (something).
      “proposals for vetting large takeover bids”
      synonyms:screen, assess, evaluate, appraise, weigh up, examine,

      look over, review, consider,scrutinize, study, inspect

      • BRITISH
        investigate (someone) thoroughly, especially in order to ensure that they are suitable for a job requiring secrecy, loyalty, or trustworthiness.
        “each applicant will be vetted by police”
  4. malfeasance:
    1. अपराध
    2. जुर्म
    3. दुराचार
    malfeasance
    malˈfiːz(ə)ns
    noun

    LAW
    1. wrongdoing, especially (US) by a public official.
  5. imperative: 
    1. अनिवार्य
    2. अवश्य
    3. जरूरी
    imperative
    ɪmˈpɛrətɪv/
    adjective
    1. 1.
      of vital importance; crucial.
      “immediate action was imperative”
      synonyms:vitally important, of vital importance,

      all-important, vital, crucial, critical, essential,

      of the essence, a matter of life and death,

      of great consequence, necessary, indispensable,exigent, pressing, urgent;

    2. 2.
      giving an authoritative command; peremptory.
      “the bell pealed again, a final imperative call”
      synonyms:peremptory, commanding, imperious,

      authoritative, masterful, lordly, magisterial,

      autocratic, dictatorial, domineering, overbearing,

      assertive, firm, insistent, bossy, high-handed, overweening

      “the imperative note in her voice was unmistakable”
  6. abjure:
    1. त्यागना
    2. शपथपूर्वक त्यागना या त्याग देना
    abjure
    əbˈdʒʊə,əbˈdʒɔː
    verb

    formal
    1. solemnly renounce (a belief, cause, or claim).
      “MPs were urged to abjure their Jacobite allegiance”
      synonyms:renounce, relinquish, reject, dispense with,

      forgo, forswear, disavow, abandon, deny,gainsay,

      disclaim, repudiate, give up, spurn, abnegate,

      wash one’s hands of, drop, do away with

  7. ridiculous: 
    1. बेतुका
    2. बेहूदा
    3. भद्दा
    4. मूर्खतापूर्ण
    ridiculous
    rɪˈdɪkjʊləs/
    adjective
    1. deserving or inviting derision or mockery; absurd.
      “that ridiculous tartan cap”
  8. remuneration:मेहनताना 
    1. क्षतिपूर्ति (f)
    2. पारितोषिक
    3. पारिश्रमिक
    remuneration
    rɪˌmjuːnəˈreɪʃ(ə)n/
    noun
    1. money paid for work or a service.
      “they work in excess of their contracted hours for no additional remuneration”
      synonyms:payment, pay, salary, wages;
  9. Aligning:

    Definitions and Meaning of aligning in English

    adjective

    1. causing to fall into line or into position
    align
    əˈlʌɪn/
    verb
    gerund or present participle: aligning
    1. 1.
      place or arrange (things) in a straight line.
      “the desks are aligned in straight rows facing forwards”
      synonyms:line up, range, arrange in line, put in order,

      put in rows/columns, straighten (up); More

    2. 2.
      give support to (a person, organization, or cause).
      “newspapers usually align themselves with certain political parties”

    So this is the end of today’s Economies based passage for bank exams . I hope You liked detailed info provided by us on this topic.

    Important info (Please read) :

    This is the best way to prepare for PASSAGE, REARRANGEMENT, FIB, and cloze test ad last but not least GA also. If you read the topic then you will be always aware of the most discussed topic in the nation in turns it will help in the essay, GD, and all other relative things. 

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Ashutosh
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