Banking Industry Issues and Reforms

Essay On Banking Industry
Banking Industry in 2010–11
During 2010–11, banks improved in terms of asset quality and profitability. Stress test showed that
banks remained reasonably resilient to liquidity and interest rate shocks
There were emerging concerns about banking sector stability related to disproportionate growth in
credit to sectors such as real estate, infrastructure, NBFCs and retail segment, persistent
asset–liability mismatches, higher provisioning requirement and reliance on short–term borrowings
to fund asset growth
Presently, the key issues related to the Indian banking sector include: o prospective migration to
Basel III while upgrading the existing risk management practices under Basel II; o transition to
International Financial Reporting...show more content...
It initiated the policy discussions with regard to providing new bank licenses, designing the
road–ahead for the presence of foreign banks and holding company structure for banks
The process of migration to the advanced approaches under the Basel II regulatory framework
continued during 2010–11, while also facilitating the movement towards the Basel III framework
Financial Inclusion continued to occupy centre stage in banking sector policy with the rolling out of
Board–Approved Financial Inclusion Plans by banks during 2010–11 for a time horizon of next
three years
Operations and Performance of Commercial Banks
The consolidated balance sheet of SCBs recorded higher growth in 2010–11 as compared with the
previous year. This was different from what was observed during the last two years and indicated a
revival from the peripheral effects of the global financial turmoil
Deposits registered higher
Get more content on HelpWriting.net

The Bank of the United States Essay
The Bank of the United States
The Bank of the United States is a symbol of the long held American fear of centralization and
government control. The bank was an attempt to bring some stability and control and was successful
at doing this. However, both times the bank was chartered, forces within the economy ultimately
destroyed it. The fear of centralization and control was ultimately detrimental to the U.S. economy.
During the Revolutionary War there was much need for a strong centralized government that would
have been able to collect taxes. The states were able to issue currency and the government accepted
this in exchange for specie. Specie was very hard to come by in the colonies and most states...show
more content...
The stock of the bank was bought and held mainly by the US government and numerous
businessmen among the states of the Union. It paid interest on public debt, issue a national
currency, dealt in foreign exchange, paid government officials, and numerous other tasks. It was
both a private and public institution but if asked by the Treasury, it would have to open its books
to inspection. It appears the bank was a very safe buy in the stock market. It paid steady dividends
put there was rarely any high fluctuation in its stock price. Meanwhile, many of the state banks at
the time had a wild fluctuation in prices. There were eight branches through the states, but originally
Hamiliton thought that branches would be a bad idea because it would cause rivalry with the state
banks. He ended up being right, as this was a contributing reason that the bank eventually failed. The
bank was not a central bank; it just held an account for the government and had little control over the
fiscal policies in each state. However, the state banks still resented the power that the bank had. This
is extremely hard to comprehend when comparing the power of the First Bank and the current
Federal Reserve System.
The First Bank of the United States lasted until 1811. In 1804, President Jefferson, who despised the
bank, removed any money that the government had from its vaults. When the issue of

History of Banks Essay
Not banks but merchants were the sources of money and credit in the colonial period of American
history (1607–1783). It was only after independence that the first commercial bank received a charter
of incorporation – the Bank of North America, in 1781. British merchant banking houses stood at
one end of a long chain of credit that stretched to the American frontier. They gave short–term (less
than a year) credits to American merchants who then extended them to wholesalers of their imports,
and the wholesalers passed them on to both urban and rural retailers – country stores and wandering
peddlers.
When the Constitution went into effect in 1789 the nation boasted three commercial banks, the Bank
of North America, chartered by Congress at...show more content...
The ratio between bank notes in circulation and specie holdings was quite small.
Growing population and trade, however, created a need for comparable growth in the volume of
money and credit – for a policy of accommodation rather than restraint. Sharp increases in the
number of state banks and in their authorized capital stock represented a response to this need.
During the life of the first bus (1791–1811) banks chartered by the states increased in number from 5
to 117, and their combined capital stock went from $4.6 million to almost $66.3 million.
The British raid on Washington in 1814 induced banks throughout the country (except in New
England) to suspend specie payments. The bank note currency circulated at a variety of discounts
from place to place, and since the government was compelled to accept it for taxes and imposts, the
public finances became so disordered as to threaten the operations of the federal government. It was
in this context of nationwide inflation and governmental derangement that Congress decided to
charter a second bus (1816–1836). The expectation was that the institution would be able to force the
state banks to resume specie payments and restore soundness to the currency.
The Bank's success in achieving those objectives is mainly attributable to its president Nicholas
Biddle (1823–1836). The mechanism was simple. The nation's currency was largely made up

Economic Effectiveness And Impact Of The Bank
The Export–Import Bank of the United States just lapsed for the first time in over 80 years on June
30, 2015. The primary activity of the Export–Import Bank is to provide export subsidies to buyers
and sellers of U.S. exports. Its ultimate goal is to shift global market share to U.S.–based
corporations and away from corporations headquartered in other countries so as to boost the U.S.
economy on the global scale. The purpose of this paper is to determine the economic effectiveness
and impact of the Bank and to discuss the implications for international, national and local
economies should the Bank fail to be reauthorized by Congress and permanently expire.
Background & Objectives Established in 1934 by President Franklin D. Roosevelt as a part of his
New Deal stimulus package, the Export–Import (Ex–Im) Bank of the United States, a small federal
government agency, is the official Export Credit Authority (ECA) for the United States. Today, the
Bank is responsible for "assistance in financing the export of U.S. goods and services to international
markets." Ex–Im's mission statement says that its activities "help to maintain and create U.S. jobs,
contributing to a stronger national economy." Driven by market demand, the Bank seeks to provide
financing for foreign export projects when the private sector is unwilling or unable to do so –
typically in the case of U.S. small and medium–sized businesses, which reportedly account for nearly
85 percent of Ex–Im's transactions.

Ex-Im Bank Essay
The Export–Import Bank was organized in 1934 by Franklin D. Roosevelt through an executive
order. It was then later made an independent agency by Congress in 1945. The bank was founded as
the Export–Import Bank of Washington but later changed its name to the Export–Import Bank of the
United States in 1968. Very rarely does one hear it referred to by it full official name, but instead it
is commonly referred to as the Ex–Im Bank. Its initial goal was "to aid in financing and to facilitate
exports and imports and the exchange of commodities between the U.S. and other Nations or the
agencies or nationals thereof" (Peters & Woolley.). The first transaction to occur was a $3.8 million
loan to Cuba in 1935 for the purchase of U.S. silver ingots. The Ex–Im Bank's first president was
George N. Peek, who was appointed by Roosevelt. Some of the bank's major projects include
funding the Pan American highway, post–WWII reconstruction, and...show more content...
"Opponents of the bank reply that organized labor and major corporations are the kinds of powerful
lobbying institutions that can extract special favors from the government. The bank, they say,
classifies a lot of big–company business as small business" (Lohr, 2015). Although the Ex–Im Bank
states that 90% of their loan recipient are small businesses, they may not actually be that small.
Some argue that the bank is not exactly performing the tasks it is there to do and that it is doing
more harm than good. Another reason some argue that the Ex–Im Bank should not be reauthorized
is the status of the entities receiving the funds. Most of those benefiting from the bank are actually
competitors of the United States. However, if the Ex–Im Bank is not reauthorized, there is a good
chance many entities would move their production overseas (Ausick, 2015). This would result in a
loss of American jobs, as well as several other negative

The World Bank Essay
The World Bank
Bureaucracy is one of the pillars of modern western society. Although this statement is debatable
from many aspects, most would agree that, at the very least, our lives are greatly affected by
bureaucracy. Bureaucracy is the 'pure form of rational organization' (Newson, Jan 11). Not only is it
a method for achieving goals efficiently and effectively, but it is acclaimed as the most able strategy
to meet objectives. The World Bank is a classic example of a bureaucratic organization. It embodies
all the characteristics necessary to qualify; from its complicated hierarchy and impersonal relations,
to the specialization and career orientation of its employees. However, not everyone agrees on the
competency of the bureaucratic...show more content...
It is a relatively small organization, and immensely respected, which allows it to chose its staff
from the best in the world. However, the Bank's rules and traditions do not allow these top notch
women and men to work at maximum efficiency. It is an organization trapped in its own structure,
stifling the staff which works for it. Lower level employees are silenced by a hierarchy which
provides few methods for the expressing of opinions, and in fact discourages dissent. This
commitment to orthodoxy has caused the Bank to fall behind on its development strategies in
comparison to the rest of the world. Nevertheless it is not an organization composed of stupid
people and is aware –– of at least some –– of its faults.
Although attempts have been made to restructure the Bank, they have only ended up further
focusing the Bank on its orthodox path. Quantity, instead of quality, has become its purpose and is
causing further havoc in the countries to which it loans (part II countries). Instead of dealing with
these problems, it fools itself and others into believing in a positive end result; ignoring the rule
'the ends do not justify the means' not to mention the fact that many do not foresee a positive end.
To deal with the image problem created by its own disasters, the World Bank has attempted to make
itself appear more effective.
Yet it seems to have forgotten that what is important is not the image but the results. This is what has

A Summary And Suggestions Of The Bank Essay
CHAPTER 5
5.1.1 FINDINGS AND SUGGESTIONS
The Bank has to do lot of work why people are still financially excluded even after 68 years of
independence and design policies to ensure inclusion of the poor and disadvantaged people. The
strategy could vary from village to village but all efforts should be made in this way as financial
inclusion can truly lift the financial condition and standards of life of the poor and the
disadvantaged people of Jammu & Kashmir. Large percentage of loans is taken by households for
meeting financial emergency, medical emergency and social obligations like marriages, etc. These
three purposes amount to 53% of the loans availed by the people. More than 60% of people/farmers
are indebted to non–institutional sources. In case of crisis, these people find it convenient to
approach non–institutional sources for their credit necessities. Financial emergencies, for instance
include unforeseen expenditure on business, consumption, marriage among others, which may not
be financed by banks and other institutional organizations. Need specific loans / credit schemes can
attract the people towards the banking domain.
In India when financial inclusion started it was just to have minimum access to bank accounts
without frills. But actually financial inclusion scope is very wide it doesn't mean just to have a zero
balance account. Even many account holders can't recall when they opened these accounts because
these

Bank Marketing Essay
I. Introduction
Within our society, financial institutions are becoming more abundant. Along with this present
growth, the field of marketing financial services has also grown in size and scope with new entrants
everyday. The relatively stable banking environment is being altered with innovation, opportunism,
and government intervention. This era, marked by the government's luminous hand of deregulation
(defined as the act of removing regulations or restrictions from a specific entity), has expanded
consumer options to the extent that commercial banking must now become an aggressively
competing member of the financial services industry. In this new era, important marketing areas such
as regulation,...show more content...
The marketing mix is simply terminology describing decisions about product, place, promotion, and
price. Marketing strategies or schemes within a specific bank are planned, organized, directed, and
controlled with the intentions of fulfilling some pre–determined goal. These goals can have various
time spans. For example, a particular bank may want to "introduce a new consumer loan plan" or
"increase the total number of new accounts opened by 10% over an eight month period." An action
of this nature would result in returns to the short run. On the other hand, if the bank wanted to
"improve its image within the community", the bank would have a longer period of time to
accomplish the goal (long run).
Bank marketing serves the role of bringing the product to the consumer or customer in a way that is
understandable and relatively easy to comprehend. Bank marketing also has the duty of responding
appropriately and realistically to externally and internally generated change in the environment. For
example, many financial institutions, including the likes of First Union, Bank of America, and First
Citizens, all offer various products and services to meet the needs of a demanding society full of
varying personalities and values. Without a myriad of varied services and products, these institutions
could stand to lose many customers and bigger than that, profits. In the eyes of many, bank
marketing appears to be a relatively simple process, but when faced

Essay on Banking
Introduction A bank refers to a financial institution that accepts deposits and channels the money
into lending activities (Lewis, 2009). Ethics refers to the principles of right and wrong that are
accepted by an individual or a social group ((Lewis, 2009).) Conceptually, ethics refers to well base
standards of right and wrong that prescribe what humans ought to do, usually in terms of rights,
obligations, benefits to society, fairness, or specific virtues (Safakli, 2005). It's the integrity measure,
which evaluates the values, norms and rules that constitute the base for individual and social
relationships, from a moral perspective (Smith and Smith, 2002). It consists of choosing the good
over the bad, the right over the wrong and the...show more content...
The banking sector in the modern society, in many areas, play many roles which includes unifying
and intermediary roles between the fund supplying and fund demanding sides of the society, helping
accomplish investment and saving functions. Banking institutions are expected to protect the rights
and interests of depositors, establish stable and trustworthy financial markets, engage in economic
development and more importantly to ethically conduct their operations in compliance with the
principles of integrity, transparency , reliability, impartially, with social responsibility and control
money laundering (Carse, 1999). However, not all banking institutions practice these norms, with
their dishonor leading to adverse effects, for instance; corruption which includes the banking sector
unethical conduct, can cost the poor three times more than the rich, according to a 2002 Word
Development Report. Ethical issues Financial institutions –including banks of all sorts, credit
agencies, private equity firms, pension funds, insurance companies, and the like– have long been
considered by most people to have no other object in view than the creation of wealth. The
performance of financial institutions is therefore measured solely on the basis of their capacity to
maximize financial assets, that is, it has been measured with evaluation factors that review only their
monetary bottom–line results.

National Bank Essay
A research program is very important & essential for acquiring experience through learning and
spreading the scope of Knowledge. I have done my research program in National Bank Limited,
Foreign Exchange Branch.
This research report is aimed at providing a comprehensive picture to the areas of Foreign Exchange
operation of National Bank Limited. The report has been divided into twelve parts. These are–
Introduction, Brief History of Banking Sector of Bangladesh, Corporate review of NBL, Foreign
Exchange, Documents Used in Foreign Exchange Business, Letter of Credit (L/C), Import, Export,
Foreign Remittance, Findings and Analysis, References.
National Bank Limited is one of the largest commercial Bank of Bangladesh. The main objective of
...show more content...
Terms used in foreign exchange operations
Foreign exchange operations of National Bank Limited
Literature review.
Total concept of Foreign Exchange Operation.
METHODOLOGY OF THE STUDY
The report is prepared on the basic of foreign Exchange of National Bank Limited. To conduct the
overall study, at first I explored the sources of Primary and Secondary information and data.
Different files of the department and statement prepared by FED helped me to prepare this report. To
present numerical data, I used the Annual Report of 2008 and monthly statement of January to
October 2009 of National Bank Limited, Foreign Exchange Branch. For preparing this report I have
used some graphical representation to find out different types of analytical and interpretation.
SOURCES OF DATA
As mentioned earlier, mainly primary and secondary data has been used. Sometimes the customers
gave some important information regarding the services of the Bank:
PRIMARY DATA
Official records of National Bank Limited (NBL)..
Expert opinion.
SECONDARY DATA
Monthly Statement of NBL.
Annual Report of NBL.
Official Files.
Selected books.

Other manual information.
Websites.
Various publications on the Bangladesh Bank.
Newspaper reports in this concern.
DATA ANALYSIS AND INTERPRETATION
Both quantitative and qualitative analysis will be performed on the findings. The quantitative
analysis will be done on the trend of export– import, growth

The Future Of The Bank Essay
Future of Bangladeshi bank
1. Introduction
Bank can be defined as the life of an economy. It plays an important role for the up gradation of an
economy. The prime or main job of the bank is to collect deposit from the savers and providing
loans to the defecator's .Banking sector makes the financial infrastructure of a country. Today
banking has become an important part of our modern economy. It is also a driving force of our
economy. Generally we make our transaction through bank. In whole world banking sector has
become the main point of the economy & in our country there is no exception. Banks play an
important role in the country. So modern banking is important. The main concern of this paper is to
analyze the future of Bangladeshi Bank.
Early banking system involves only collecting deposits & providing credit to lenders. But it is the
era of modern banking. Modern banking is involved with many other activities. It has FX
departments, provides lease financing, helps in M & A, serves as investment bankers and also
provides advisory services.
The main policy to successful banking is the ability of balance many activities in the same time.
The bank has to try to keep a positive and impressive growth rate. On the other hand it must take
action to minimize the risks it faces. The bank has to try to keep enough liquidity to meet all its
liability. All of these are related to sound performance of a bank. The financial performance shows
the strengths and weaknesses of bank

Bank Essay
Many people don't know what's the best bank for them in the future, so I am writing this to show
what bank will be best for me in the future. I am going to talk about 4 banks that would be good for
me. The 4 banks are 4Front credit union, Charlevoix State bank, Huntington, and 5/3rd bank. 4Front
credit union will be open Monday through Friday 9:00A.M.–5:00. They are open on Saturday from
9:00A.M. to 1:00P.M. Some of the locations for 4Front are East Jordan, Boyne City, Petoskey, and
Charlevoix. The next bank's hours that I'm talking about is Charlevoix State bank. The Charlevoix
State bank will be open Monday through Thursday 9:00A.M, to 4:00P.M. Friday they are open at
9:00A.M. to 6:00P.M. Saturday they open at 9:00A.M. and close at noon....show more content...
The NCUA covers up to $250,000. 4Front can give you loans. You can get pre–approvals before you
go shopping for what you want. There's no early payoff penalties. Theres the ability to have online
banking. All you need to have it sign up for online banking is the last 4 digits of your social security
and your date of birth.
Secondly bank I am talking about is Charlevoix State bank. The minimum balance for the savings
account is $50. There's no monthly service fee. The opening deposit is $50. You are always going
to need $50 in the savings account so it's a little harder to open an account in their bank. There's a
3 month early closing fee of $10. You can only have 6 pre–authorized transfers or withdrawals per
month, but if you use the ATM or go inside to talk to a person you have unlimited transfers and
withdrawals. The checking account has no minimum balance. There is no monthly service fee.
The opening deposit is $50 dollars, but you only need to have $5 in the checking account. You
can write as many checks as you want and you will not get feed for writing them. There's a free
ATM and Debit card. If there is no account activity for a year a monthly dormant account fee of $5
will be assessed. There are mortgage loans, consumer loans, and commercial loans just to name a
few. There's free online banking, and telephone banking. The FDIC insures $250,000 for each
account.
The third bank I am going to talk about is Huntington. The

Benefits Of A Banking Career Essay
Introduction
The impact of skills and availability in choosing a banking career in today's work force can be
demanding yet challenging while also offering rewarding advancement and great accomplishments.
Advantages of a banking career consist of getting to know a bank's products and services, develop
teamwork skills, engage with the community, competitive wages, become a better salesperson, and
opportunity for advancement. (BankingCareersInfo.com) Choosing a career in an entry level
banking field will place me into a fast paced professional setting that will allow me to interact with
the public while handling their private and personal information ad providing for their banking
service needs.
Types of careers in Banking
Banking is a competitive market that offers a broad range of careers. Choosing a career path in
banking more often begins with job availability within your area and in general most first time
banking careers begin at the entry level position and work their way up within the company.
Tellers
Accounts Representatives
Loan Officers
Financial Analysts
Collectors
Treasurers
Budget Analysts
Knowledge, Skill, and Abilities in Entry Level Banking Career,
Considering that the broad range of careers within banking varies, so do the amount of knowledge,
skills and abilities, I may need for the position. The requirements of this position of Customer
Accounts Representative required having: High School Diploma or equivalent, three years plus

The Operation Of Bank Operation Essay
Bank's operation is like bloods, which as it facilitates liquidity across the financial system, and
affects wider economy and market in the world. On one hand, a good operation is one of factors of
becoming a successful bank, and let a bank make more profit and get high credit quality. On the
other hand, bad operations for a bank will loss more customers, and increases a bank's cost and
budget. The present paper provides simple model of retail banking operation of 500 millions
dollars. It based on a structure model of bank operation included by some financial accounts
featuring households, corporates, and general bank. The operation volume of bank intermediation
between household and corporates is shown to reflect structural parameters starts with $ 500
million. This operation model will spread three parts of bank, they are processing, quality, and
control. The simple model of operation will provide some parameter to tell how a bank operation
works.
Bank's operation processing is set up assets account and liabilities account. Base on Asset=
Liabilities +Equity. The bank begins $500 million assets, and $500 million liability. In asset
accounts, the bank will provide some basic service in the beginning of operation, there is offering
saving deposit, loan, card, checking account and credit lines (Peter S. and Sylvia C., 2011,6, 9–11).
While the bank sets up the accounts, it should maintain all the accounts, and administer credit.
Further more, the very last part in processing

Bank and Essay
About 51,70,000 results (0.34 seconds)
Search Results
1. 30 Best Bank Essay Topics www.selfgrowth.com вЂє Articles вЂє Success Skills вЂє Continuing
Education
No matter how good your bank essay is, if you have selected a boring ... Banking essays can be real
fun to play with if you have a thorough ... Related Articles.
2. Important Essays for Bank Exams – Jagran Josh www.jagranjosh.com
/articles–important–essays–for–bank–exams–1314356... Important Essays: Find Essay writing
topics, Essay writing tips, Essay writing formats and other Important Essays for SBI and other Bank
exams.
вЂЋJan Lokpal Bill – вЂЋCorruption In India – вЂЋRole of media in a democracy
3. Free banking Essays and Papers – Free Essays...show more content...
3) Are the efforts taken by banks to popularise banking been successful? ... Banking related general
awareness –– 6 2013 TWO.
5. ESSAY WRITING–– A FEW TOPICS ~ Bank Exams
Search Results
Education
No matter how good your bank essay is, if you have selected a boring ... Banking essays can be real
fun to play with if you have a thorough ... Related Articles.
2. Important Essays for Bank Exams – Jagran Josh www.jagranjosh.com
/articles–important–essays–for–bank–exams–1314356... Important Essays: Find Essay writing
topics, Essay writing tips, Essay writing formats and other Important Essays for SBI and other Bank
exams.
вЂЋJan Lokpal Bill – вЂЋCorruption In India – вЂЋRole of media in a democracy
3. Free banking Essays and Papers – Free Essays www.123helpme.com/search.asp?text=banking
Free banking papers, essays, and research papers.
4. Essay topics ~ Bank Exams www.sbank.in/2011/04/essay–topics.html Apr 23, 2011 – Essay topics
... 3) Are the efforts taken by banks to popularise banking been successful? ... Banking related
general awareness –– 6 2013 TWO.
5. ESSAY WRITING–– A FEW TOPICS ~ Bank Exams
Search Results
Education
No matter how good your bank essay is,

Bank Essay
Fall of 2018,I begin college at NCMC in Petoskey and I will be moved in and ready to start the rest
of my life. As doing so I must have a bank to put all my money in. i've chosen 2 banks that would
be good for me in college and 2 that wouldn't be so good for me. There are many banks that I was
interested in when I attend college and they include the 5th and 3rd bank, 4front, Chase bank and
PNC.
The first bank that I was interested in for college is The 5th 3rd bank. 5th 3rd bank is open 9am to
5pm Monday–Friday and there's one right in Petoskey. With a checking account no credit score is
required to open an account here. If you get feed for using another ATM other than a 5th 3rd ATM
then you can get up to a 50% discount on that fee as long...show more content...
In a 4 front savings account, you must have at least 1 dollar in there at all times to hold your
savings account. 4 front gives you a free debit/ ATM card once you open a bank account. This
bank would be the most efficient because I already have it and it's the best bank for a savings and
checking account since there are not a lot of problems and fees.
The third bank that I was interested in for college is The Chase bank. This bank is open 9 a.m. to
5p.m. on weekdays and 9a.m. to 1p.m. on saturdays. Although the hours maybe good, Chase bank
is not the best bank to choose if you're going to college. At Chase bank you must have 10,000 in
your savings to earn $150 every 90 days and you can not exceed 6 withdraws a month or you will
get feed 5 dollars for ever withdraw you go over. Chase bank has many ATMs, but only 2 are in
Petoskey along with a walk in bank. In a checking account you automatically get a free debit/ATM
card with chip technology. Throughout my research with chase bank I've come to realize that
chase bank is not a good account for a college student because of fees that occur throughout the
process of having a bank account there. If you don't have enough money in your account, the bank
will charge you and if you over withdraw from your account the bank will charge you. I've come to
the conclusion that chase bank is not a good bank for a college student to have.
The last bank I was interested in for college bank account was PNC. This bank has a location in

Bank Accounting Essay
gaining importance that most of the bank's income is earned from its non–core activities which are
treasury operations, corporate services and so on. So we try to assess the quality of income in
terms of income generated by core income activities like income from lending, advances etc.
The factors considered by the supervisory and regulatory authorities to assess the quality of assets are
To evaluate the undistributed profits and reserves, retained earnings, profits, and their authentication
whether an adequate capital are generated through this channel or not.
To determine the quality sources of earnings and incomes, budgeting policies and Management
Information Systems (MIS).
Ratings Criteria for Earnings:–
A rating of A+ or 1...show more content...
1.5.5 Liquidity Management: –As we all know that the liquidity ratio states the level or limit up to
which a bank is able of satisfying its respective liabilities. Banks generate money by mobilizing
short–term savings of the people converting into deposits at lower interest rate, and then lending
these funds in long–term loans at higher rates of interest, so it is quite risky for banks to mismatch
their lending interest rate. Liquidity is measured by the level of earnings, the fifth component of
CAMEL Framework is liquidity (stability of customer, whether loans and deposits are well
matched and overall liquidity position), and it is an important element for both good and bad
banks. All banks are highly concerned for their liquidity risk; i.e., the problem which arise due to
the bank failure in meeting its current financial obligations (e.g., depositors) because of
inadequate current assets such as cash and quickly cash type marketable securities, Specifically at
the time of economic recession and to avoid these type of problems every bank tries to analysis its
liquidity position regularly and make arrangements to avoid such problem..Laruccia and Revoltella
(2000) found that banks with low net loans to assets ratio (good liquidity position) tend to obtain
better BFSRs assigned by Moody's. Poon and Firth (2005) and Pasiouras et al. (2006)

bank failures Essay
http://www.worldnewsstand.net/2001/article/bank_failures.htm
Bank Failures
We have written before about the remarkable ability of banks to create money when making loans,
and of their equally remarkable ability to multiply these newly created–from–nothing bank deposits
via fractional reserve banking. What we have written is true, and easily verified.
But banks fail! That fact is equally true, and easily verified as well. How can we reconcile these
apparently contradictory facts? If banks can create, and multiply, money, how can they fail? Could
your business fail if what you made was, literally, money, or what people took for money?
The qualifier is important. It is what people assume about money that makes modern banking
possible. The...show more content...
But if his borrowed million dollars is on deposit in that bank, the liability of the bank for a million
dollars remains.
Most banks can probably absorb a million dollar "loss." But if the borrower was a
foreign government, and the amount created, or loaned, was a billion dollars, that's another matter.
When money is loaned, it is created: instant new money, or inflation. When a loan is repaid, the
money goes out of existence. Money creation, or lending, is balanced by money annihilation, or
repayment. What difference does it make to the bank, then, if a borrower fails to repay? Either way,
the money supply is reduced. The difference is interest, which is the bank's profit. Merely adding
to the money supply with each loan offers no benefit to the bank. The interest on a billion dollars
is substantial, however, so to keep that interest coming, the bank will bail out a foreign government
which is unable to service its loan. It may not do this directly, but through a bank consortium, or
government front, such as the IMF, or World Bank. Again, appearances are important. The bank
cannot be seen lending more money to a borrower who has demonstrated his inability to repay, but
a group of banks, perhaps under some governmental aegis, can get away with it. You or I would do
the same, probably, if we could.
For example: if you could loan your brother a million dollars simply by giving him a piece of paper
on which you had written ONE MILLION,

What is the World Bank? Essay
During, and in the years after the World War 2, there was a significant need of financial aid,
especially in Europe. The structural US were almost untouched, and their economy was rising. Soon
they became the new superpower. At a conference held in Bretton Woods, New Hampshire, in 1944,
the World Bank (WB) was founded for purposes of reconstruction in Europe. The head office was
placed in Washington, and the bank president was American. When the economic situation in Europe
stabilized, the WB shifted its focus. The WB evolved from being a postwar lender in Europe, into
one of the most influential financial institution today, because of its funding in the development
world on different continents. This text will deal with the World Bank,...show more content...
So the output is proportional to machines, if you change the amount of machines, you get the same
change in output. "Domar's model was not intended as a growth model, made no sense as a growth
model and was repudiated as a growth model, so it is ironic that Domar's growth model became and
continues to be today the most applied growth model in economic history." (Easterly, Elusive Quest
for Growth p.28) The result of the use of this economic model was short term. The growth stopped
quickly, and even more money was invested. Easterly argues that the models used for growth,
unfortunately was influenced by the great depression, with huge unemployment, and the
industrialization of Soviet. What applies to one country and one situation does not necessarily go
well in another. Many of the poor countries used import substituted industrializations, making their
own goods instead of importing cheaper and better merchandise. By the start of the 80s, countries
such as Mexico were in so deep debt, that they could not afford to pay the interest rate. (Easterly,
Elusive Quest for Growth) The end of the 80's and communism introduced the Washington
Consensus. The Consensus was a long term structural adjustment, where the recipients of financial
aid relied on some fundamental conditions. The loaner needed to apply free trade and private
enterprise. This became a contributory factor for the introduction of capitalism

Ethics in Banking Essay
Banking ethics are the moral or ethical principles that certain banks choose to abide by. There is not
a universal code of ethical conduct, but the banks that vaunt their ethical credentials evaluate the
ethical standing of potential investors and partners. Also, these banks choose the companies that
they in turn invest in with their ethical policy in mind. The number of ethical questions that the
banking industry faces are many and multifaceted. Full service relationships with customers are a
thing of the past while profitability, and its byproduct corporate greed, has become the main goal.
Banking ethics and profitability are not mutually exclusive, but being an ethical bank does sometimes
mean that they maintain their moral rigor...show more content...
Can we blame the retail branch employees or even the retail banking industry? This change in
mentality is just merely an adaptation necessary for survival, which can be explained as "survival of
the fittest". In order to survive banks have been required to change from traditional money handlers
to aggressive sales oriented employees.
The increase in competitiveness among all banks has ballooned so much that these banks are
willing to do anything to retain or add a new customer. The strategy of putting customers in high
pressure sales situations is not unethical. However, the line is drawn when branch employees are
told to sell a certain product so the branch will meet its monthly/quarterly goal. With this type of
leadership, you are enabling employees to sell products to customers that they most likely did not
need in the first place and may not be qualified for. These unethical tendencies led customers to
believe that they needed a product that was only sold for the company's benefit. These situations
only confirm that the banking industry is putting their profit interests above the well–being of the
customers that they provide services for.
When the bank is acting in their own self interest they are taking on an egoistic role. They have an
excessive sense of self importance. An egoist will put profit at the top of the list of importance and
that is exactly what the banks

Banking Industry Issues and Reforms

Recommended

Recommended

More Related Content

Similar to Banking Industry Issues and Reforms

Similar to Banking Industry Issues and Reforms (11)

More from Paper Writer Services

More from Paper Writer Services (20)

Recently uploaded

Recently uploaded (20)

Banking Industry Issues and Reforms