Swot Analysis of Banking Industry

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

Maximising long-term value for its customers, shareholders and its employees is the organisation’s main strategic priority. Commonwealth bank’s strategy is to create long- term value and maintaining competitive advantage by differentiating itself from its competitors.

In the document is also said that even when people have money in that bank people would go to the bank and go get their money since that bank was going to be a failed and it also said that after their failure the repressive effect on the spending of its clients. They couldn’t do anything to help the bank to crash even though they will all be crashed any day.

Randall submits that building firewalls and Chinese walls will abolish the synergies between financial and non-financial institutions. In addition, Randall also points out that government should restrict the areas where synergies is not required to cancel out by building Chinese walls and where the risk is acceptable rather than stop supporting creditors of fragile banks. Randall suggests that there should be barrier for non-banks to enter into banking sector in order to avoid the enlargement of safety net (Randall, 63-74).

The UK banking system is an Oligopoly because there are a small number of companies in the industry to allow barriers to be raised against the entry of new firms. ‘It’s important that we have to make sure there’s no banks too big to fail’ (article). Although in an oligopoly its known

What are some of the problems that individuals might face if they use one of the “problematic” financial institutions? – Some of the problems that individuals might face are that they might lose money or don’t get to earn the

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

The high profile national and cross-border bank failures in the last few years (including Fortis, Lehman Brothers, Icelandic banks, Anglo Irish Bank and Dexia) revealed serious shortcomings

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.

in the rural and semi-urban sector, which used to be the bastion of the State Bank

Banking industry is highly competitive as there is high exit barrier. Moreover, competitors are large and quite equally balanced. Additionally, as banking industry has emerged for hundred years, just about everyone who needs banking services already has them.

Discussing the political factors influencing operation of the banks in the national, local and regional levels and legislation, it should be mentioned that banks have always been to a certain degree regulated by the government (Benston, 2000). For example, government determines the fraction of reserves that a commercial bank should keep with

The table 2.1 below depicts that the SBI and ICICI bank are only two Indian public and private sector banks respectively appearing in the top 100 banks lists and ranked 54th and 107th according to the assets size in the Brand Directory League Tables 2014.

Banks fail when they are no longer able to meet their obligations. They might be unable to pay the bills, or a bank failure may arise because they can 't provide cash when depositors demand it.  Nepal Development Bank Limited (NDBL) which aspired to enter the new millennium with profitability, size and efficiency on par with the best of the banks in the world is one of the banks that have been a victim of its own irresponsible acts. One factor behind the misfortune of Nepal Development Bank Limited is bad corporate governance. Economists say corporate governance has appeared as the biggest challenge for the banking sector. According to them, the easy licensing policy adopted over the last decade is the main reason behind today’s problems, as everybody with certain income could open BFIs.

Private banks, regardless of where they operate all over the world, also facing similar demands arise from the