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
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 :
wildly unreasonable, illogical, or inappropriate.,(Noun) विसंगति an absurd state of affairs.“the incidents that followed bordered on the absurd”
- 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”
- vetting:vet1verbgerund or present participle: vetting
- make a careful and critical examination of (something).“proposals for vetting large takeover bids”
- BRITISHinvestigate (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”
- wrongdoing, especially (US) by a public official.
- imperative: imperativeɪmˈpɛrətɪv/adjective
- 2.giving an authoritative command; peremptory.“the bell pealed again, a final imperative call”
- ridiculous: ridiculousrɪˈdɪkjʊləs/adjective
- remuneration:मेहनताना remuneration
Definitions and Meaning of aligning in English
alignəˈlʌɪn/verbgerund or present participle: aligning
- causing to fall into line or into position
- 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.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.
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