Overview Of The Banking Industry Essay

Bank of Baroda is one of the leading commercial and retail banks of India, which increasing presence in foreign markets too.The bank holds a strong position in the Indian banking industry and witnessed a Y-o-Y growth of ~20% in its global business. The bank has been making continuous efforts to diversify its business and focus more on the areas like retail, MSME and agriculture credit. The bank holds a strong capital base too, with current Capital Adequacy Ratio standing at 12.28% under the BASEL III norms. The bank also saw a decline in its NPAs, although it is not quite sure that whether this trend is expected to be continued in future as well or not. Moreover, the bank’s management has stated the bank is going through the last phases of its restructuring programs, indicating that the

Before the advent of the Federal Deposit Insurance Corporation (FDIC) in 1933 and the general conception of government safety nets, the United States banking industry was quite different than it is today. Depositors assumed substantial default risk and even the slightest changes in consumer confidence could result in complete turmoil within the banking world. In addition, bank managers had almost complete discretion over operations. However, today the financial system is among the most heavily government- regulated sectors of the U.S. economy. This drastic change in public policy resulted directly from the industry’s numerous pre-regulatory failures and major disruptions that produced severe economic and social

In contrast with the past, banking industry is also popular sector due to its high profitability. Therefore, attracts many entrepreneurs

By international standards, however, there is still much scope for retail banking in India. After all, retail loans constitute less than seven per cent of GDP in India vis-à-vis about 35 per cent for other Asian economies — South Korea (55 per cent), Taiwan (52 per cent), Malaysia (33 per cent) and Thailand (18 per cent). As retail banking in India is still growing from modest base, there is a likelihood that the growth numbers seem to get somewhat exaggerated. One, thus, has to exercise caution is interpreting the growth of retail banking in India.

The United States banking industry has been a problem ever since the fraud and corruption from the market crash of ’08. There have been two sides arguing what we should do to these banks. Many people say, “We need to split up the big banks into smaller banks.” Their argument is that the smaller banks will be easier to monitor to make sure no fraud is going on and it will cause there to be more competition in the industry which will lower interest rates. The other side of the argument where many people also stayed is that the big banks don’t need to be split up. They just need a bailout to get back on their feet and they can sort this mess out. The arguments stand on two principles one side says the banks are corrupt and need to be disbanded, and the other side’s states that the banks are too big to fail; come ground is difficult for these two but they both want to fix the economy.

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

Research Methodology: The research is exploratory in nature and the study uses the latest available published secondary data for the years 2008-2013 compiled from Report on Trends and Progress of Banking in India RBI. For the purpose of analysis of data appropriate trend and percentage analysis is used.

India’s banking industry is largely fragmented with more than half of the commercial banks being state-run entities. It has seen one of the biggest mergers of all time in the recent past with Kotak Mahindra taking over ING Vysya. While the Indian banking sector is still facing tough times, Kotak Mahindra’s merger with ING Vysya will help the former to expand their presence across India.

The banking industry started long time ago to provide financial services to merchants in Athens, Venice, Genoa, Florence, and other commercial cities (Conant, 1915). Coins and banknotes were used to facilitate trading and exchanging goods. As the idea of money movement grew, central banks were developed to act as a third party center of trust (Rousseau & Sylla, 2003). For decades, banks used to work in the same manner using the same traditional business models as banknotes and paper records. In 1967, the first ATM machine was introduced (Kumbhar, 2011). The SWIFT foundation was then established in 1973 to secure money transactions between different banks. Swift messages do not transfer money; they just send PO (Payment Orders) that must be settled by financial institutions worldwide (Scott & Zachariadis, 2014). Recently, new changes took place in the surrounding environment where new digital products appeared, regulations were mandated, and customer behavior patterns were developed (Hirst, 2017). Bitcoin was introduced in 2009, though still not used in traditional banks, but it has emerged a new era of digitizing money and is considered as internet of money (Ali, et al., 2014). With these rapid changes, the need for strong credit scoring systems increases. Some countries have strict scoring systems based on customers’ historical loans and payments records, while other countries have less strict systems where people simply get

I recently caught an article on U.S. banking from one of my favorite U.S. websites "Banking Connects." The essence of the piece was that U.S. banks were awash in funds, but entrepreneurs were somewhat "floating alone" in help on floating that loan! So, let 's try and "Canadianize" that comment a bit with respect to a franchise loan in Canada, with emphasis on how to successfully loosen the purse strings of those franchise lenders for your funding needs. Two critical components of success in franchising funding are your overall "package" of information, including a business plan and cash flow document, as well as owner capital. For non-financial types, those two fairly basic elements are still daunting though. The good news is that for very modest prices, a number of solid sources can recommend assistance or even complete the package on your behalf. The cost by the way? Reasonable! And now on to owner capital. If there 's one constant question we get from clients, it 's "How much money do we have to put into the business." Naturally, we have the perfect answer that never seems acceptable at the outset: "It depends." That 's because the amount of money you put into the business is dictated by several areas of planning that must all come together. They are as follows: In certain instances, some Canadian or U.S. franchisors doing business in Canada might even strongly dictate how much money you have to put down. We suggest that they might be doing this by experience,

After world financial crisis several important developments/ reforms and policy measures introduced by the government. Bank enters into the banking Industry in organized form and their contribution in Indian Economy is very participative form for activity of banking Business. My main objective of the study is to trace outgrowth of banking industry and there advances after world financial crisis (i.e. 2008) and also assessment of banking advances.

The Reserve Bank of India (RBI) is India’s central bank. Though public sector bank’s currently dominate the banking industry, numerous private and foreign banks exist. India 's government-owned banks dominate the market. Their performance has been mixed, with a few being consistent profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership.

To highlight the current banking scenario in our country, the Indian Banking Sector is one of the quickest developing areas of the economy. With subsequent rise in extra cash in the hands of their citizen and expanding exchanges through ATMs, Internet and Mobile Banking, the Indian Banking Industry is good to go to confront coming years with new arrangements and key changes. According to the Reserve Bank of India (RBI), the

The organisation of the rest of the paper is as follows. Section 2 briefly discusses the present banking sector in Sri Lanka. Section 3 reviews relevant literature. In this section, more emphasis is given to discuss the banking efficiency

India has a financial system that is regulated by independent regulators in the sectors of banking, insurance, capital markets, competition and various services sectors. In a number of sectors Government plays the role of regulator.