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Economics/Bank Employees Transfer.


Dear Prof Raza

In India, the Bank Employees are transferred from one branch to another branch. They get promotions in their Grade.

Is this Bank Business rule mandatory in all countries?.

Thanks & Regards,
Prashant S Akerkar

Hi Prashant,

No,this Bank Business in not mandatory in all countries. In fact, I don't think it is mandatory in India. It may be because serving in different branches people gather better experience about different localities and different environments. However, the overall ambiance of banking business centers more or less on the fixed norms and modes of business pursued by the bank. Besides, there are different types of bank. A commercial bank may more profit from transfer of officials, but a development bank, such as ICICI or IDBI, need not do better by instituting employee transfers.

In some countries in Asia, and also in Europe or America, there are some employees who continue in the same branch, especially the Head Office, and continue to get promotions. In Pakistan, PICIC (Pakistan Industrial Credit and Investment Corporation) or the Pakistani version of Indian ICICI, and in Bangladesh, Development Bank Ltd. or Bangladesh Shilpa Bank, have officials who remain in the same place (Karachi in Pakistan or Dhaka in Bangladesh), get promotions, and retire. Of course sometimes, some may go to other offices, not necessarily banks, on deputation and return. In PICIC transfer is very rare.

In North America, especially the new recruits often are transferred from branches to branches. This so happens because there are so many branches and also because similar higher positions may not be available in all the branches. E.g., one employee from TD Canada Trust working as Manager is transferred to a larger branch when he is promoted Adviser, because this position may not be available in the branch he had been working. Unless otherwise one works in the Head Office, he is necessarily transferred to the Head Office to rise to the high position of Chief Economist. Similar situations do prevail in American Express or Bank of America. This necessitates transfer.

Usually, however, international banks transfer employees from one country to the other, less as something mandatory but more as something prompted by employee interest and newer openings.

On the whole, in the context of globalized economies of the countries, transfers are becoming more common, even if not always mandatory.

I hope I have been able to give my opinion on this topic. This a very dynamic topic and there is always change in the methods of hiring, empowerment, and retirement. I wish you best for your further investigation into this very interesting query.


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Eklimur Raza


It appears some students in this website are confused about elasticity of demand and the slope of the demand curve when they are trying to figure out why rectangular hyperbola comes up in case of unitary demand curve. First, they don't know that RH can be depicted in a positive quadrant of price,quantity plane. Secondly, they make the mistake that the slope of RH is constant at -1. Two points could help them: first, e=1 at each and every point of the RH, because the tangent at any point shows lower segment=upper segment (another geometric definition of e); yet slopes at different points,dQ/dP, are different; second, e is not slope but [(Slope)(P/Q)]in absolute terms. Caveat: only if we measure (log P) along the horizontal axis and (log Q) up the vertical axis, can we then say slope equals elasticity --in which case RH on P,Q plane is transformed into a straight-line demand curve [with slope= -tan 45 deg] on (log Q),(logP) plane, and e= -d(log Q)/d(log P). [By the way, logs are not used in college textbooks --although that is helpful in econometric estimation of elasticity viewed as an exponent of P, when demand equation is transformed into log-linear form.] I have not found the geometrical explanation I have given in any textbook followed in undergraduate and college classes in Canada (including the book followed in a university where I taught for a short time and in the book followed in George Brown College, Toronto, where I teach.


About 11 years' teaching economics and business studies, and also English, history and elementary French.Practical experience in a development bank, working with international donor agencies like the World Bank and the ADB. Experience in free-lance journalism, including Canada's "National Post."

I teach micro- and macroeconomics at George Brown College (continuing education), Toronto, ON, Canada.

Many articles and editorials, on different subjects, in English newspapers. Recently an applied Major Research Paper, based on a synthesis of the Solow growth model and the Lewis two-sector model, has be accepted by Ryerson University, Toronto. Professors Thomas Barbiero and Eric Cam, Ryerson University, accepted the paper.

Master degree in Interantional Economics and Finance and diploma with honours in Business Administration from Canada.

Awards and Honors
Received First Prize in an inter-university Literary Contest.

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