Foreign Bank Entry Effect On Domestic Banking Essay

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Banking industry is currently operating in the maturity stage. There are many players as a result of which the competition is quite high. Competition is broadly based on the levels of fees charged, reputation, the range of services and products provided. As the industry consolidates and the range of services broadens, the size and geographic spread of industry players in increasing. Providing a high set of barriers is the capital and regulatory requirements within the banking sector. Entities that want to start up as a commercial bank and/or investment bank or securities dealer face significant establishment costs in order to gain acceptance and meet market reputation. Furthermore, start-ups require up-front expenses in order to establish proper distribution channels. Globalization is high and the trend is increasing. Cross-border sales and acquisitions of banking operations are also occurring, as assets are shuffled in the race to raise capital.

Almost 80% of respondents were non-Muslims. Therefore these research reports are mostly non-Muslim customer’s opinion on corporate banking Muslim. This study proves that Muslim banking products are not so popular among corporate customers in Malaysia and only a few maintain banking relationships under the Islamic banking system. In addition, nearly 65% of respondents indicated that their knowledge of Islamic banking system is very limited. This study shows that there is a misunderstanding among respondents regarding the objectives of Islamic banking. While 38.1% of respondents were uncertain about the nature of profit sharing system in Islamic banking, 50% believe that this principle is the only principle adopted by Islamic banks as a replacement Riba. Respondents were not familiar with other principles such as Musharakah, Ijarah, Wakala, and Istisna'a. Overall, the conclusions of the study are that there is a general knowledge that inadequate corporate banking products and services to Islam among

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in

The main limitation of this article is that the study does not include foreign banks, thus the authors indicate that further research needs to incorporate banks of foreign origin including more variables under the theoretical framework as well as multiple measurement methods enhancing the justifiability of the theoretical model like focus group interviews, nominal group technique, etc.

Kenya is the regional leader in East Africa and this position is expected to be a constant over time. The economy is fairly diversified with a strong and well developed services sector. The financial services industry in particular is well developed and established, moreso the country is considered East and Central Africa’s hub for financial services.

The banking sector occupies a pivotal position in the global economy. it is useful to understand the variety of banks. Typically, the banks can be divided into two categories, one is the local banking and other is the foreign banking.

For instance, the inflation rate rose from an annual average of 25.96 per cent between 1986 to 1990 to an average of 48.92 per cent from 1990 to 1995 while the economy grew in real terms at an average of 5.99 per cent and 1.53 per cent respectively. The performance of the naira exchange rate has also been very poor with an average exchange rate of N5.2/$ between 1986 and 1990 reaching an annual average of $99.15/$ between 2001 and 2004, an average depreciation of 1806.73 per cent under two decades. All these and other factors peculiar to individual banks have jointly influenced the behaviour and performances of the banking industry as they try to adjust to the vagaries of the macroeconomic environment. Olaniyan (2000) has indicated that inflation and its variability are part of the important indicators of macroeconomic instability in Nigeria with significant negative impact on investment. This study sets out to investigate specifically, whether instability in the macroeconomic environment impacts positively or otherwise on the lending behaviour of the Nigerian banking sector. As observed by Baum, Caglayan and

A wide range of theoretical literature explores the relationships between banks and economic growth. In an ideal world researchers would construct cross-country variables that would describe banks profitability, corporate governance in place, resource mobilization and allocation and risk management. Unfortunately until now no standardized measures for a broad spectrum of countries have been developed. That is the main reason why most of the researchers today uses variables that describe the over-all size of the banking sector by which they proxy for the „financial depth“ (Goldsmith, 1969; Mckinnon 1973).

The focal point of this research study is intended to cover one deposit money bank in Nigeria ( First Bank of Nigeria plc in Enugu State) . These deposit money bank hold major shares in the banking business in Nigeria and were considered as good representatives of all commercial banks operating in Nigeria.

Financial System is the most important institutional and functional vehicle for economic transformation of any country. Banking sector is reckoned as a hub and barometer of the financial system. As a pillar of the economy, this sector plays a predominant role in the economic development of the country. The geographical pervasiveness of the bank coupled with the range and depth of their services make the system an indispensable

By B. B. EBONG GROUP MANAGING DIRECTOR/CHIEF EXECUTIVE UNION BANK OF NIGERIA PLC ABSTRACT Against the backdrop of the role of banks as financial intermediaries and their function as the engine of growth of the economy, this paper examines the extent to which the banking industry has helped to stimulate economic activities in Nigeria and what the prognosis looks like in the post-consolidation era. The paper notes that the banking industry in Nigeria witnessed a remarkable growth in terms of deposit base, number of branches, total asset and volume of loans and advances, especially since the de-regulation of the financial services sector in the last quarter of 1986. However,

An Internship Report Presented in Partial Fulfillment of the Requirements for the Degree Bachelor of Business Administration (BBA)

Banking sector is very sensitive and competitive by its nature. Although I have enjoyed full co-operation from employees of Shimrail Branch of Prime Bank Ltd and they also gave much time to prepare this report properly in the way of my study. There are some limitations in the study. Limitations are as follows:

Research Aim: The aim of this paper is to identify those factors which customers preferred in the selection of Islamic bank in Pakistan. These factors or preferences are such as Shariah compliance, Quality and Attractiveness of Offerings, Friendliness of bank personnel, Cost and benefit analysis and Awareness. These factors are in the customer’s mind in the selection of Islamic bank.