Main Trends of Wholesale Banking

Compare and contrast today’s structure versus historical structures. Why has consolidation occurred and who will experience benefits and losses – customers, the institutions, etc. Why have bank failures occurred? Are there any consequences of consolidation and failure in the industry?

The requirement of central clearing promotes transparency, and “skin in the game” rule encourages banks to take less speculation, and a more standardized and transparent market will be formed in US. As a result, with better regulated financial system and more sophisticated investment protection, America magnetizes more international capital flows, which boost the development of US financial institutions. In the meanwhile, other countries tend to follow the US regulation standard, improving market discipline of global financial institutions. However, magnates in financial industry with unchanged risk-taking tendency can manipulate their leverage ratio, and the credibility of information they state can be

Please summarise a recent event or development relating to local, regional or global activity that impacts our Investment Banking business. (150 words) *

The industry that I have chosen to analyze for this paper in the banking industry. The companies which I have selected to analyze are Bank of America & Southeastern Bank. Bank of America will represent as the example for the company who has acquired and merged with other banks, and Fresno Southeastern Bank will act as the example for the bank who has never merged with a larger bank in any form or has been acquired. Both these banks offer similar products to their customers, for checking and savings accounts to home and car loans. They both offer investment products as well. Bank of America has a lot more products on a larger scale due to the size of their company, and the mergers they have made over their history. They operate worldwide

China’s financial markets are still fairly primitive however China has one of the highest saving rates in the world. This is Largely due to rising incomes, but also due to the lack of a robust social safety net to protect citizens from changing economic circumstances such as unemployment and population ageing. The banking sector was only opened to foreign competition at the end of 2006. This forced Chinese banks to become strong and efficient so as to compete with the international banks. In making the banks more efficient, state owned enterprises also had to increase their efficiency as they no longer were allowed to take low cost loans that were running at a loss for the state bank. These economic developments coupled with increased prudential standards and the improvement of lending practices has allowed for savings to be allocated efficiently for investment purposes, to support medium term growth in the Chinese economy.

By the reason of fact the market abuse caused abusive behavior the financial market has become vulnerable. In this manner today’s financial sector need to mull over new improvements in this sector. For this purpose financial security regulations have been corrected and rebuilt to prevent the market abuse.

Below is a list of financial institutions the author expects to use in the next five years and why. Keep in mind that he

Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have

What roles have deregulation, innovation, and globalization played in changing the character of bank management in recent decades? Has the overall outcome of the changes been greater stability in the banking sector? Discuss the respective roles of asset and liability management in modern banking.

The Financial Services Act of 2012 in the UK came into force in 2013 on 1st April. This Act has the government reforms on the financial regulatory structure in the UK. The Act gives the new guidelines on the management of the banking sector and other supervisory roles in the financial services sector. This Act bestowed the oversight role to the Bank of England which is therefore expected to be responsible for the occurrences in the financial system and how the financial institutions manage their balance-sheet risks. This Act also stipulates that three more bodies are to be formed to assist in managing this sector. These bodies include the Financial Policy Committee (FPC), Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA). This Act affects significantly the two previous Acts which have been running the sector. These are the Financial Services and Markets Act of 2000 and the Bank of England Act of 1998. In this paper, the Act is clearly analyzed and mostly the effects it has on the Financial Regulatory Regime in the UK (Noked 2013). The economy of the UK has been following a laissez-faire system since 1979 (Allan and Stuart 2011)

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

Financial regulation is necessary and without an efficient set of regulations a country could see rises in unemployment, interest rates, and the deterioration of financial intermediaries. With the globalization of the financial industry, it becomes more and more common for businesses to seek financing outside of their county 's boarders. These innovations in the financial industry stress why it is so important for regulations to be created and changed to reduce risk and asymmetric information in financial systems.

Analysis • Analyzing the industry context – What are the trends in the investment banking industry affecting Campbell and Bailyn in 2007? – Product specialization – Move toward commoditization in some segments of industry. – Increasing sophistication of customers  Analysis •

Private banking industry has changed in a very basic way, driven by many key factors such as: free competition systems, modern developments in information technology (in particular, developments of the internet), and changing demographics. Private banks now operate in an environment shaped by increasing and shifting regulations, and in markets influenced by the uncontrolled situations of the world economy and geopolitical issues.

Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions associated with the banking business.