...BANKING SECTOR REFORMS IN INDIA . Introduction: Financial sector reforms introduced in the early 1990s as a part of the structural reforms have touched upon almost all aspects of banking operation. For a few decades preceding the onset of banking and financial sector reforms in India, banks operated in an environment that was heavily regulated and characterized by sufficient barriers to entry which protected them against too much competition. The banking reform package was based on the recommendation proposed by Narsimhan Committee report (1992) that advocated a move to a more market oriented banking system, which could operate in an environment of prudential regulation and transparent accounting. One of the primary motives behind this drive was to introduce an element of market discipline into the regulatory process that would reinforce the supervisory effort of the reserve bank of India(RBI). Market discipline, especially in the financial liberalization phase, reinforces regulatory and supervisory efforts and provides a strong incentive to banks to conduct their business in a prudent and efficient manner and to maintain adequate capital as a cushion against risk exposures. The administered interest rate structure, both on the liability and the assets side, allowed banks to earn reasonable spread without much efforts. Although banks operated under regulatory constraints in the form of statutory holding of government securities and the cash reserve ratio (CRR) and...
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...Banking Sector in Bangladesh * By Super Admin * Published 26 September 2006 * Bangladesh Study * Rating: Unrated BANKING SECTOR IN BANGLADESH INTRODUCTION The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word 'bank' was probably derived from the word 'bench' as during ancient time Jews used to do money -lending business sitting on long benches. First modern banking was introduced in 1668 in Stockholm as 'Svingss Pis Bank' which opened up a new era of banking activities throughout the European Mainland. In the South Asian region, early banking system was introduced by the Afghan traders popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as 'Kabuliwallas'. NUMBER AND TYPES OF BANKS The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number...
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...Going digital – transformation in banking sector Digital transformation in Banking sector has begun. In the process of going digital, established institutions are introducing digital platforms that could help their customers have a better experience. While, startups in this domain are coming up with an approach of having “digital platform” as the only way to function. Customers today are introduced to a digital platform that takes care of all their banking functions from opening a new account to handle issues relate to their existing account, and helps resolve issues associated with their debit or credit cards. Customers across the globe have been continuously demanding a digital medium that can make their banking functions simple. As per...
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...BANKING CHALLENGES IN THE 21ST CENTURY Dr. Muhammad Anwar Hassan, Vice Chancellor, Preston University, Mr. Muhammad Humayun Khan, Chief Manager, State Bank of Pakistan, SBP BSC (Bank) Peshawar, Mr. Rashid Qazi, Vice President, PICIC Commercial Bank Ltd. Peshawar, Mr. Badar Hussain, Area Head North, MCB Peshawar, Mr. Tabraiz Hassan Butt, Regional Business/Operational Chief Peshawar, Fellow Bankers, Distinguished Ladies and Gentlemen! First of all I would like to congratulate the administration of Preston University Peshawar for organizing this Seminar. It was the earlier part of the 1990s when the inherent weaknesses of the banking structure were recognized and a comprehensive reform process in the banking industry was initiated. The underlying objectives of the initiatives were to ensure and create a level-playing-field environment of competition in the market and to strengthen the governance and supervision of the financial institutions. In fact, the reforms were targeted to adopt a market-based indirect system of monetary, exchange and credit management to ensure the efficient allocation of financial resources. Today, 15 years later, it would no longer be an exaggeration but a fair statement that the landscape of the banking system in Pakistan has changed. The country has made a significant progress in implementing financial sector reforms and has achieved a more competitive market structure with expanding market share of private sector banks. Moreover, significant gains have...
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...Literature review The essence of financial management is the creation of shareholder value. According to Ehrhard and Bringham (2003), the value of a business based on the going concern expectation is the present value of all the expected future cash flows to be generated by the assets, discounted at the company’s weighted average cost of capital (WACC). From this it can be seen that the WACC has a direct impact on the value of a business. (Johannes and Dhanraj, 2007). The choice between debt and equity aims to find the right capital structure that will maximize stockholder wealth. Debt policy and equity ownership structure “matter” and the way in which they matter differs between firms with many and firms with few positive net present value project (McConnel and Servaes, 1995). Leland and Pyle (1977) propose that managers will take debt equity ratio as a signal, by the fact that high leverage implies higher bankruptcy risk (and costs) for low quality firms. Since managers always have information advantage over the outsiders, the debt structure may be considered as a signal to the market. Ross’s (1977) model suggests that the values of firms will rise with leverage, since increasing the market’s perception of value. Under some conditions capital structure does not affect the value of the firm. Splitting a fund into some mix of shares relating to debt, dividend and capital directly adds value to the company (Gemmille, 2001).Firms has increased their level of debt relative to...
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...IMPACT OF INFORMATION TECHNOLOGY IN BANKING INDUSTRIES TABLE OF CONTENTS Title page - - - - - - i Approval page - - - - - ii Dedication - - - - - - iii Acknowledgement - - - - iv Abstract - - - - - - v Table of contents - - - - - vi CHAPTER ONE 1.0 INTRODUCTION 1. Background of the study 2. Statement of problem 3. Objective of the study 4. Research question 5. Significance of the study 6. Scope of the study 7. Limitations of the study 8. Definition of terms CHAPTER TWO 2.0 REVIEW OF RELATED LITERATURE 1. Brief history about information technology 2. Banking environment in Nigeria 3. Application of information system applied in banking industry 4. Types of information system allied in banking industry 5. The impact of information technology to all state bank (Head office in Enugu) 6. Organizational profile CHAPTER THREE 3.0 RESEARCH METHODOLOGY 1. Sources of data 2. Population of study 3. Sample of six determination 4. Sampling technique 5. Method of data treatment 6. Research instrument used 7. Questionnaire distribution CHAPTER FOUR 4.0 Data presentation, analysis and interpretation 1. DATA PRESENTATION AND INTERPRETATION CHAPTER FIVE 5.0 SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION 1. Summary of findings 2. Recommendation 3. Conclusion Bibliography Appendix. CHAPTER ONE INTRODUCTION ...
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...INDIAN BANKING SECTOR ACKNOWLEDGEMENT Any accomplishment requires the effort of many people and this work is not different. We would like to express our gratitude to the faculty for his invaluable insights, without which this project would not have been completed. We would also like to thank everyone including our friends who directly or indirectly helped us in the completion of this project. DECLARATION We hereby declare that the project titled “Indian Banking Sector” is an original and independent work and is the end result of our own efforts and that the acknowledgement has been given in the bibliography and references to the sources are they printed, electronic or personal. TABLE OF CONTENTS 1. ACKNOWLEDGEMENT………………………………………………..….1 2. DECLARATION……………………………………………………………..2 3. INTRODUCTION……………………………………………………………4 4. CURRENT TRNEDS.……….………………………………………………5 5. INDUSTRY STRUCTURE………………………………………………….7 6. MARKET STRUCTURE…………………………………………………….9 7. NATURE OF COMPETITIVENESS……………………………………….10 8. FUTURE PROSPECTS…………………………………………………….11 9. CONCLUSION……………………………………………………………….12 10. BIBLIOGRAPHY/WEBLIOGRAPHY……………………………………….13 INTRODUCTION: The executives of India's banking community nodded their heads proudly when Prime Minister Manmohan Singh said in a speech: "If there is one aspect in which we can confidentially assert that India is ahead of China, it is in the robustness and soundness of our banking system...
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...Article on Indian Banking Sector: “The challenges that the banking sector in India faces” It is by now well recognized that India is one of the fastest growing economies in the world. Evidence from across the world suggests that a sound and evolved banking system is required for sustained economic development. India has a better banking system in place vis a vis other developing countries, but there are several issues that need to be ironed out. In this article, we try and look into the challenges that the banking sector in India faces. Interest Rate Risk: Interest rate risk can be defined as exposure of bank’s net interest income to adverse movements in interest rates. A bank’s balance sheet consists mainly of rupee assets and liabilities. Any movement in domestic interest rate is the main source of interest rate risk. Over the last few years the treasury departments of banks have been responsible for a substantial part of profits made by banks. Between July 1997 and Oct 2003, as interest rates fell, the yield on 10-year government bonds (a barometer for domestic interest rates) fell, from 13 per cent to 4.9 per cent. With yields falling the banks made huge profits on their bond portfolios. Now as yields go up (with the rise in inflation, bond yields go up and bond prices fall as the debt market starts factoring a possible interest rate hike), the banks will have to set aside funds to mark to market their investment. This will make it difficult to show huge profits from treasury...
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...in providing the full range of financial services is thus a task that will be well rewarded with economic growth. This report takes a first look at the overall financial system of Iraq with a forward looking approach. At the outset it was agreed with Iraqi authorities that the focus of this review should be forward looking and constructive. Overall the financial sector in Iraq is underdeveloped, and is playing a limited role in financial intermediation. The banking system is still by far the most important part of the Iraqi financial system, accounting for more than 75 percent of the assets and dominated by state ownership. Non-bank financial institutions and markets are small and under-developed but have the potential to provide access to sources of finance. Access to finance is impeded by weak financial infrastructure, which needs to be strengthened over time in all areas, including credit registry, the collateral framework, judicial systems, and accounting and auditing skills. When looking at Iraq’s financial system it is important to keep the general political economy in xv REPUBLIC OF IRAQ FINANCIAL SECTOR REVIEW mind. The difficult security situation imposes costs and constraints, the complex political situation impedes decisive policy action, governance issues linger, and the legacy of...
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...Table Of Content TOPICS | REMARK | Acknowledgement | | Objective | | Executive Summary | | Introduction | | ICICI Bank | | Yes Bank | | HSBC | | SBI Bank | | HRIS | | ICT | | Role of Banks in India | | Recommendations | | Conclusion | | Bibliography | | Objective: The objective of this report is to study the banking sector in the Indian Economy on a global perspective. In this we have tried to study the different aspects of the banks. Here in we have considered 4 banks, namely SBI, ICICI, HSBC, Yes Bank. Research Methodology: The research methodology that we adopted was a dual one:- Primary Research Under Primary research we visited the banks, collected data directly from the respected persons and analysed it. Secondary Research Under Secondary Research we took information from the Internet, Books. INTRODUCTION Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of ombay and the Bank of Madras, all three of which were established under charters from the British East ndia Company. For many years the Presidency banks acted...
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...Pakistan’s Banking Sector Current Situation and Critical Issues ISHRAT HUSAIN Pakistan’s banking sector reforms which were initiated in the early 1990s have transformed the sector into an efficient, sound and strong banking system. The most recent comprehensive assessment carried out jointly by the World Bank and the IMF in 2004 came to the following conclusion: “ for reaching reforms have resulted in a more efficient and competitive financial system In particular, the predominantly state-owned banking system has been transformed into one that is predominantly under the control of the private sector. The legislative framework and the State Bank of Pakistan’s supervisory capacity have been improved substantially. As a result, the financial sector is sounder and exhibits an increased resilience to shocks.” The major changes that have occurred in the banking sector during the last decade or so can be summarized as follows: a) 80 percent of the banking assets are held by the private sector banks and the privatization of nationalized commercial banks has brought about a culture of professionalism and service orientation in place of bureaucracy and apathy. b) The banks that were losing money due to inefficiencies, waste and limited product range have become highly profitable business. These profits are, however, being used to strengthen the capital base of the banks rather than paying out to the shareholders. The minimum capital requirements...
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...MSc. in Finance and International Business Authors: Romans Tjurins (Exam ID: 402722) Andrejs Nikitins (Exam ID: 402723) Academic Supervisor: Jan Bartholdy An empirical study of abnormal return on stock and operating performance as a result of acquisition in banking industry Aarhus School of Business, Aarhus University May 2011 Table of Contents 1. Introduction................................................................................................................ 1 1.1. 1.2. 1.3. 1.4. 2. Problem statement................................................................................................ 3 Definitions and clarifications ............................................................................... 3 Delimitations ....................................................................................................... 4 Evaluation of sources ........................................................................................... 4 Literature review ........................................................................................................ 5 2.1. 2.2. 2.3. Mergers and acquisitions activity in recent years .................................................. 5 Overview of efficient market hypothesis .............................................................. 7 Abnormal operating performance ......................................................................... 9 3. Event study approach ....................................
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...KENYATTA UNIVERSITY OPEN LEARNING PROGRAMME DEPARTMENT OF ACCOUNTING AND FINANCE UNIT CODE: BAC 502: UNIT TITLE: FINANCIAL MANAGEMENT Course Lecturer: F. Abdul LESSON ONE INTRODUCTION 1.1. What is Financial Management Financial management can be defined as the management of the finances of an organisation in order to achieve the financial objectives of the organization. The usual assumption in financial management for the private sector is that the objectives for the company is to maximize shareholders wealth. 1.2. Financial Planning The financial manager will need to plan to ensure that enough funding is available at the right time to meet the needs of the organisation for short, medium and long-term capital. a) b) 1.3. In the short-term, funds may be needed to pay for purchases of inventory, or to smooth out changes in receivables, payables and cash: the financial manager is here ensuring that working capital requirements are met. In the medium or long term, the organisation may have planned purchase of fixed assets such as plant and equipment, for which the financial manager must ensure that funding is available. Financial Management decisions The financial management decisions relate to investment, financing and dividends. The management of risk must also be considered. Investments in assets must be financed somehow. Financial management is also concerned with the management of short-term funds and with how funds can be raised over the long term. The retention...
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...GOVERNMENT OF INDIA, MINISTRY OF RAILWAYS RAILWAY RECRUITMENT BOARDS Date of publication: 12.05.2012 Date & time of closing: 11.06.2012 up to 17.30Hrs. Date of Preliminary Exam: 28.10.2012 (refer Para 16 of General Instructions) CENTRALISED EMPLOYMENT N O T I C E No.: 03/2012 Applications are invited in the prescribed format as enclosed( on a good quality A-4 size bond paper of 80 GSM using one side only) from eligible Indian Nationals for the Common Preliminary Examination for following posts of Non Technical Popular Category(Graduate), Assistant Station Master and Traffic Assistant. Applications complete in all respects along with required enclosures should be sent by ORDINARY POST NORMALLY to the concerned Railway Recruitment Board as mentioned in para 15 of this notification, so as to reach on or before 11.06.2012 up to 17.30 Hrs. The applications can also be dropped in the box kept at the premises of concerned RRB offices, till the closing date. For candidates residing in Assam, Meghalaya, Manipur, Arunachal Pradesh, Mizoram, Nagaland, Tripura, Sikkim, Jammu & Kashmir, Lahaul & Spiti districts and Pangi sub-division of Chamba district of Himachal Pradesh, Andaman, Nicobar and Lakshwadeep islands and for candidates residing abroad, the closing date for receipt of applications by posts will be 26.06.2012 up to 17.30 Hrs. Candidates Please Note: 1) Stages of Exam. :a) Common Preliminary Examination (i.e. stage I) for all the notified categories. b) Main (Second stage) Exam...
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...An Overview of the Malaysian Banking Sector FINA0501 ASIAN FINANCIAL INSTITUTIONS TERM PAPER LEE JUNHONG, JEREMY 2010540826 I. Introduction Malaysia has been an important player in the Asian economy since the early days of independence, and even before that, as a British protectorate. It is currently the third largest economy in Southeast Asia, and is the 28th largest economy in the world in terms of purchasing power parity according to the World Bank. Malaysia has also successfully diversified its role by focusing her economy on both the traditional sphere of primary agricultural produce as well as being a hub for light manufacturing in consumer durables and electronics. Strong economic planning and farsighted vision by both the government and central bank has been instrumental in maintaining a strong growth rate of her economy; her combined year on year growth since independence in 1957 has averaged 6.6%, which is no doubt a stellar record and one of the highest in Asia. The financial institutions and their functions have been instrumental in this success, and this paper will strive to highlight the strengths and weaknesses, as well as a general overview of the Malaysian banking sector. I. Historical background The earliest beginnings of the banking sector in Malaysia dates back to the early 19th Century under British influence and the expatriate (mainly British) merchant communities. The Straits Settlements comprising of Singapore, Malacca and Penang were administered...
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