...The core business of the retail banking industry and the banking industry as a whole involves taking risks mainly when offering credit facilities to borrowers. It is for this reason that the risk taking behavior of a bank will always have an impact on the bank’s profitability and ultimately on whether or not the bank remains a going concern. This is despite that in a number of countries the non-interest income on banks is growing in importance; after-all loans constitute the largest share of bank’s assets. Over the years there has been a significant amount of research on the effects of competition on the risk taking behavior of banks and hence their stability. This has been coupled with inquiries by different competition authorities around...
Words: 1564 - Pages: 7
...[pic] [pic] [pic] TABLE OF CONTENTS |S.NO |PARTICULARS |PAGE NO | |1 |Introduction to customer perception and banking industry |3 | |2 |Literature review |4-6 | |3 |Objectives and hypothesis |7 | |4 |Research methodology |8 | |5 |Limitations |9 | |6 |Data analysis |10-24 | |7 |findings |25 | |8 |Suggestions |26 | |9 |Conclusions |26 ...
Words: 3002 - Pages: 13
...Major Problems of the Banking Industry and Strategies to overcome them: A study on Bangladesh. Table of Content Topic Page# 1.0 Introduction ------------------------------------------------------------------------------------3 2.0 Review of Previous Empirical Literature------------------------------------------------4 3.0 Banking Industry in Bangladesh---------------------------------------------------------- 3.1 What is a Bank? ----------------------------------------------------------------------5 3.2 Definitions of Bank form different view -------------------------------------5 3.3 Where does the word BANK come from? ------------------------------------6 3.4 Why Banks? Why don’t go to another financial institution? -------------7 3.5 Banking System in Bangladesh---------------------------------------------------7 3.6 Banking system is very from country to country because of Following 3 reasons---------------------------------------------------------------------12 3.7 There are different kinds of financial services firms calling themselves Banks---------------------------------------------------------------------------------------12 4.0 Major Problems Faced by Bangladeshi Banking Industry-------------------------14 4.1 Lack of Good Governance, Accountability and Transparency------------14 4.2 Low quality of asset ---------...
Words: 5756 - Pages: 24
...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...
Words: 1873 - Pages: 8
...of an industry of your choice” NAME OF STUDENT DATE OF ASSIGNMENT DEADLINE 21st of November 2011 WORD COUNT 1503 Index Contents Index 2 Introduction 3 Investment Banking Sector:- 4 Definition of Political Risks:- 5 Impact of Political Factors on the Investment Banking 6 Conclusion 9 Reference List :- 10 Introduction Finance has always been centre point of many nations in terms of their economic, social and cultural development. In fact, a nation cannot survive without proper finance and management. This assignment first introduces the fundamental meaning of term Investment Banking and political risk. The assignment focuses on how government is playing major role in formation of investment banking. Examples have been provided which shows governments of other countries with same democratic ruling system follow the same financial regulations. Government also tend to have their own controlled system of investment for national interest. Some examples have been mentioned in the assignment which shows the faulty political interest responsible of collapse of investment banking and later government have to come in picture to save the banks. This assignment also mentions about other direct and indirect social, economic effects influencing political decisions on investment banking. At the end, conclusion summarizes about the impact of political factors on the development of investment banking. Investment Banking Sector:- Investment banking is one...
Words: 1872 - Pages: 8
...Structural Change in the U.S. Banking Industry: The Role of Information Technology Sandra D. Cooke Economics and Statistics Administration Office of Policy Development Office of Business and Industrial Analysis June 1997 ESA/OPA 97-6 Structural Change in Banking: the Role of Information Technology Structural Change in Banking: the Role of Information Technology ABSTRACT Commercial bank investment in information technology (IT) equipment has grown rapidly, from $104 million in 1960 to more than $10 billion in 1994. These investments in “hard” technologies (computer hardware, software, telecommunications equipment, etc.) have been accompanied by increases in "soft" technologies, for example, complex financial innovations that were infeasible on a large scale without IT hardware. These developments, together with deregulation, are creating new competitors, new financial markets and instruments, and a new role for commercial banks as providers of financial services. This study documents how changes in information technology have affected the role of banks in financial markets and have influenced changes in the structure and performance of the U.S. banking industry. The analysis also covers new, fast-growing financial innovations linked to IT investment e.g., asset securitization and derivatives. IT’s effect on the banking industry has been positive. Increased competition has caused banks to lose traditional customers, but IT enabled the banks to offer new products...
Words: 14834 - Pages: 60
...overview 5 1.2 Product & Services 5 2. INDUSTRY ANALYSIS 8 2.1 Industry overview 8 2.2 Competitors analysis 8 2.3 Current state of the economy 8 2.4 Porter’s five forces 13 2.5 SWOT Analysis 16 3. BUSINESS AND FINANCIAL RISKS ANALYSIS 16 3.1 Liquidity Risk 16 3.2 Capital risk 19 3.3 Strategic risk 22 3.4 Credit risk 23 3.5 Foreign exchange risk 25 3.6 Market risk 27 APPENDICES 29 REFERENCES 36 EXECUTIVE SUMMARY The main purpose of this report is to investigate Bendigo Bank’s business and financial risks for the sake of suggesting the most appropriate financially justified risk management strategy. The main content of the report is divided into four major parts including (1) Company analysis, (2) Industry and peer analysis, (3) Risk management analysis and (4) recommendation. The first section will critically provide a brief overview of the company background and detailed information about its core products and services consisting of personal banking, company banking and wealth management. Following section will discuss through macro-economic factors including the current state of the economy measured by relevant economic indicators. Then, the industry overview and the performance of major rivalries will be analysed and supported by conducting Porter’s five forces and Swot analysis. The critical section will deliver business and financial risks analysis via different categories of risks. The analysis will be complemented by the comparison...
Words: 5812 - Pages: 24
...Risk Management Still at Rudimentary Stage in Nigeria’ Deputy Governor, Financial System Stability, Central Bank of Nigeria (CBN), Dr. Chiedu K. Moghalu, recently spoke on “Risk-Ability: Risk Management Knowledge and Infrastructure for Nigeria’s Financial Services Industry,” at a Chief Risk Officers’ retreat. Obinna Chima, who was there presents the excerpts: Financial Crisis From the tulip mania in Holland in the mid-1630s to the ultimately disastrous speculative rush for the shares of the Mississipi Company promoted by John Law and his Banque Royale in Paris in the early 1700s, from the South Sea Bubble in London in the same period (to which Sir Isaac Newton lost a princely £20,000) to the great Wall Street Stock Market boom of the 1920s that preceded the Great Crash of 1929 and the Great Depression and on to the global financial crisis of 2008 – 2009, the history of finance over the past 500 years has been marked by frequent booms and busts. Historical evidence suggests, as the famous American economist John Kenneth Galbraith put it, “that the financial memory should be assumed to last, at a maximum, no more than 20 years. This is normally the time it takes for the recollection of one disaster to be erased and for some variant on previous dementia to come forward to capture the financial mind.” If this is so, and we are condemned to cycles of financial implosions that wipe out economic value, is the modern science of risk management doomed? It isn’t. The future...
Words: 1973 - Pages: 8
...Introduction s environmental issues gain greater attention, pressure is being placed on all industries, including financial services to implement “green” initiatives. While green banking is not yet a key reason for most customers to select one financial institution over another, customer demands and greater environmental awareness are driving a number of financial institutions to go green. Environment is a key focus amongst ethical banks (in this field specially called sustainability or green banks) as well as amongst many conventional banks that wish to appear more ethically oriented or that see switching to more environmental practices to be to their advantage. In general bankers “consider themselves to be in a relatively environmentally friendly industry (in terms of emissions and pollution). However, given their potential exposure to risk, they have been surprisingly slow to examine the environmental performance of their clients. A stated reason for this is that such an examination would ‘require interference’ with a client’s activities. While the desire to not meddle in the business of the client is valid, one could also note that banks are required to interfere in the business of their clients regularly to ensure that the clients’ business plan is viable before issuing them a loan. The kind of analysis that all banks partake in is termed a single bottom line analysis (this analysis only considers financial performance). It is arguable whether or not performing a triple bottom...
Words: 3636 - Pages: 15
...Banking Research & Writing Table of content Introduction 3 Structure and functioning of UK banking system: 3 Performance measurement system 5 Trading revenues and Value-at-Risk 7 Evaluation of Regulatory Challenges of UK Universal Banking Model 9 Micro and macro prudential regulation 9 Basel II, III regulation 10 Global Financial Crises in UK 12 Conclusion 13 References 14 Introduction The UK managing an account has experienced considerable change in the course of the most recent 20 years, essentially determined by local deregulation and different strengths that have changed supply and interest qualities of the money related administrations industry. Elaboration of structure and functioning of the UK banking industry, Evaluation of Regulatory Challenges of UK Universal Banking Model and Global Financial Crises in UK is discussed further in this paper. Structure and functioning of UK banking system: The UK banking system is regularly said to be very focused and subsequently deficiently aggressive. The UK banking sector contains one market and not many markets. The UK banking system is indeed a mix of numerous separate product markets with rivalry originating from distinctive regions and diverse contenders. The High Street banks are all sizeable members in each of the business sector fragments and giving administrations to the overall population, the leading bank in each one fragment has a tendency to appear as something else. Business banking...
Words: 2870 - Pages: 12
...Basel Accord Risk is one of the core issues of the finance and economics. Number of models applied to estimate the possibility and frequency of risk. However none are perfect. Factors affecting risk are so vast and complicated that no precise model can estimate the future of the risk. When the term risk is used the first thing comes to your mind is the banking sector. Banking is one of the risky sides of the finance. For instance they always encounter the asymmetric information risk. Imagine bank lend money of its depositors to the borrower, there is always a risk that the borrower will default. There is also a risk that, if the payment is fixed bank can have a risk of declined interest rates. Since 1960 due to the increased financial innovations the concept of the risk became more complicated. For instance in the U.S. banks are the main source of funding for households and business, besides this they are also main source of credit borrowings, payments, and main determinant factor in monetary policy conduct. Conduction so many operations simultaneously banks healthy business shape is always heated interest of public. The main concerning factor is always bank capital and its risk related management. Starting from 1981 U.S. banking industry started establishing general standards for bank capital risk and its management. By the time these rules were more specified due to the low capital ratios of the banks. Due to low capital ratio the quality of loans declined. The risk of default...
Words: 436 - Pages: 2
...CREDIT RISK ANALYSIS SYSTEM OF STANDARD CHARTERED BANK by Abdullah Bin Haroon ID: 2003210001013 An Internship Report Presented in Partial Fulfillment Of the Requirements for the Bachelor of Business Administration SOUTHEAST UNIVERSITY, BANGLADESH October 2005 TABLE OF CONTENTS Page LIST OF TABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii LIST OF FIGURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix CHAPTER 1 INTRODUCTION 1.1 Origin of the report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.3 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4. Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5. Methodology 1. Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. Primary source . . . . . . . . . . . . . . . . . . . . . . . . . 3 3. Secondary source . . . . . . . . . . . . . . . . . . . . . . . . 3 4. Sample Information. . . . . . . . . . . . . . . . . . . . . . . 3 5. Data Collection Method. . . . . . . . . . . . . . . . . . . . 3 6. Data Analysis. . . . . . . . . ...
Words: 13997 - Pages: 56
...A REPORT ON DEPOSITORY INSTITUTIONS: COMMERCIAL BANKING INDUSTRY OF BANGLADESH Date of submission: 24th August 2015 Submitted to Farzana Lalarukh Associate Professor Department of Finance University of Dhaka Submitted by SL Name BBA ID Remarks 1 Sifat sadia 17-003 2 Barna Paul 17-047 3 Maghla Hossain 17-061 4 Saima Sultana 17-069 5 Nawsina Arif 17-085 Department of Finance University of Dhaka Date of Submission: 24th August, 2015 Department of Finance University of Dhaka Letter of Transmittal August 24, 2015 Farzana Lalarukh Associate Professor Department of Finance University of Dhaka Subject: Submission of Report on depository institutions: banking industry of Bangladesh. Dear Madam, It gives us enormous pleasure to submit the report on Depository institutions of Bangladesh as per the Advisor’s instruction. We expect this report to be informative as well as comprehensive as per requirement. Working with such a topic was an inspiring experience for us. We believe that the knowledge and the experience we gathered will facilitate us a lot in our future career life. With our limited knowledge, we have tried our level best to prepare the report worthwhile. Your acceptance and appreciation would surely inspire us. For any further explanations about the report, we will be gladly available to clarify the ins and outs. Sincerely, Sifat Sadia Roll no. 17-003 On behalf of Group...
Words: 9131 - Pages: 37
... In Canada recession was less severe and they face no banking failure due to the size and diversification in their large institution has maintained their stability. New Entrant was limited by Canadian government and I exchange chartered bank with provide them financial stability, in Canada focuses on banking sector that’s why brokers dealers and security market remain much at smaller .The banking system of branch was oliogiopolisty that imply the system which has limited supply of banking services and cost as compared to their competitors . In our previous work (Bordo et al., 1994) we analyzed that the Canadian banking is not categorized in higher cost as compared to US. The banking of Canada same returns on equity and largely used MMMFSs After 1987 they became a vital part of Canada banking, at that time government had given them permission to create MMMFs and half of total MMMFs are kept at bank which means that they are within the banking system. According to (Byung kyong & Niamh Sheridan,2012) Canada’s three large bank weighted average is two an half time smaller than Australia’s four major banks however non performing rate of housing loans in Australia and Canada are almost same in recent years. The mortgages in Canada are provided by Canada mortgage and Housing Corporation own by Government are assigned at weight of zero risk, therefore the lowest risk of residential mortgages of four large Canadian banking is almost 70% in comparison with 40% of major Australian...
Words: 3290 - Pages: 14
...The sector was characterized by small sized banks with high overheads; low capital base averaging less than $10million; heavy reliance on government patronage and loss making. Nigeria’s banking sector was still characterized by a high degree of fragmentation and low levels of financial intermediation up until 2004. In the light of the foregoing, banks are compelled by the Central Bank of Nigeria to raise their capital base from N2 billion to 25 billion on or before 31st December, 2005. Most banks resorted to mergers and acquisition as a survival strategy, which saw a reduction in the number of banks from 89 to 25. This study contributes to the concept of bank recapitalization by critically examining the impact of bank consolidation on the performance of banks using a sample of randomly selected Nigerian banks. It is the intention of the researcher to give more validity to empirical evidence that have been obtained by previous researchers on the subject matter. Relevance of the study The earliest set of studies evaluates the effects of bank consolidation through mergers and acquisitions comparing pre- and post- merger performance by measuring performance using either accounting or productive efficiency indicators.The results from both indicators have varied and at sometimes been contradictory. This can be explained by performance-influencing variables like size, brand name, diversification and cost reduction, there is still no reconciliation between these indicators. I intend...
Words: 6693 - Pages: 27
