Banking Challenges in the 21st Century. What Banking Industry in the Face of 21st Century

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

All this remark less performance of MCB has earned it many awards like “The Best Bank of Pakistan” award consecutively for two years; 2008 and 2009. The award was given by “Euro Money” a leading international publication.

The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.

Technology 's impact on society has changed in many areas of our lives. Technology has changed travel, you can now book your own plane ticket without going to a traveler’s agency, schooling you can take classes online, and have access to doctors and medicine without having to leave your home. I chose to write about the topic of banking. With the help of technology banks are able to reach out to more customers and provide better services to them. How has technology affected the world of banking? What choices do we have when it comes to our banking needs?

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

Biggest number of employees in banking sector and it spends a considerable amount of income in employee’s salary compensation

The problems that afflict Bank Century was first started from after the merger on November 27, 2001, at the time Governor of Bank Indonesia board meeting approved the acquisition principle Pikko Danpac Bank, and Bank CIC. However, on July 5, 2002 when the permit acquisition of BI was released, BI began smelling tort. Century Bank began to conduct securities transactions - securities (SBB) fictitious worth USD25 million. There are also high risk and Century SBB is required to establish the allowance for uncollectible active productive (PPAP). This resulted into a negative CAR of Bank CIC. These conditions make large withdrawals third party - resulting in massive bank liquidity problems and has violated the net open position (NOP).

The banking sector is faced with increasing challenges as the modern day society evolves. In the aftermath of the economic crisis, the population came to become more demanding of the banking sector. In other words, the various categories of stakeholders such as customers, employees, business partners, the public and so on became more vocal and forwarded more demands. The new challenges of the banking sector refer to the operation in a means in which they create benefits for the overall wellbeing of the communities in which they operate.

The structure of the banking industry has undergone sweeping changes in the past two decades. In response to heightened competition from non-bank financial firms enabled by technological progress among

Next section, after introduction, provides overview of status of banking and reforms in Pakistan, section three elaborates methodology and fourth section provides results. Final section concludes the study. 2 OVERVIEW OF FINANCIAL SECTOR Financial sector in Pakistan consists of regulators, commercial banks, development finance institution and stock market. Earlier the financial sector was supervised and regulated by three organizations such as State Bank of Pakistan, Pakistan Banking Council and the Corporate Law Authority (CLA). The SBP acts as central bank, Pakistan Banking Council (PBC) used to monitors the performance of nationalized commercial banks and Corporate Law Authority regulates the equity market. At the time of independence Pakistan inherited Habib Bank that was established in 1941 in Bombay (Mumbai) which after creation of Pakistan shifted from Bombay to Karachi. On 1st July 1948 the Government of Pakistan has established a central bank that is State Bank of Pakistan

Commercial banks have played a vital role in giving direction to economic development by catering the financial requirement of trade and industry in the country. By encouraging thrift among the people, commercial banks have fastened the process of capital formation. Banks draw the community savings into the organized sector which can then be allotted among the different economic activities according to the priorities laid down by planning authorities in the country. ‘The banks are not only the safe deposit vaults for these savings, but taking the banking system as a whole, they also create deposits in the process of their lending operations. However, the important function of a banker is the

Over the years, the banking sector in India has seen a no. of changes. Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers and consequently, the banks. Some of the significant changes in the banking sector are discussed below.

The banking industry of the 21st century operates in a complex and competitive environment characterized by these changing

Banks are the pillars of the financial system. Specially, in Bangladesh the health of the banking system is very vital because the capital market is little developed here. As the banks are still the major sources of credit and exercise great influence on the financial system, it is extremely important that the country's banking systems should be in good health in the interest of investment activities meeting the needs of all kinds of finance and related matters.

Silk Bank maintains its position as Pakistan's Premier Bank determined to set higher standards of achievements. It is the major business partner for the Government of Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its large network of branches locally, internationally and representative offices. Banks new identity Silk bank –