What Are The Strategic Objectives Of A Commercial Bank

Perfect competition is a market structure in which three criteria are met, firms are price taker, all firms produce a homogeneous product and entry and exit are unrestricted (Thomas & Maurice, 2010). Independent Bank is the number one Community Bank in the Shelby County marketplace; it is the number two largest bank headquartered in the city. This is in addition to countless other banks and credit unions. When I-bank began Memphis was a geographical oligopoly, meaning in this market place a large percent of business were controlled by the top three payers. These players controlled 75% of the deposits in the city. Those oligopoly members were Union Planters Bank (Regions Bank), First Tennessee Bank and National Bank of Commerce (SunTrust Bank).

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

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).

Claessens, S. (2009). Competition in the Financial Sector: Overview of Competition Policies. Retrieved on 8/22/2013,

According to the audited financial data generated the bank’s return on assets is substantially low given the vast assets portfolio it boasts of holding. In general the company is not getting sufficient value for the vast asset investment it holds, thus it would be equally good if the company undertook a more robust utilization of the assets at its disposal. The bank is open to measures such as; expanding the customer base and enhancing the credit book as well as diversifying its portfolio holdings. Thus, the management should take a better and more strategic choice in the overall allocation of the firm assets/capital to generate more revenue. In relation to other leading competitors in the Kenyan bank industry the company is quite performing despite the low

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

The Federal Deposit Insurance Corporation, the institute in charge of regulating commercial banks, became burden with an innovative need to assess the expanding investment activity of the commercial banks. The Federal Deposit Insurance Corporation had previously been assigned the easy task of assessing the commercial banks, within

• Governance and oversight: Assessing business model and strategy changes and reinforcing the importance of sound corporate governance appropriate for the size and complexity of the individual bank. A specific focus will be on determining the adequacy of strategic, capital, and succession planning. Examiners will assess whether the plan is appropriate in light of the risks in new products or services. If applicable, examiners will assess the bank’s merger and acquisition processes and procedures.

With the outstanding performance through the years of UOB, its mission statement has been realistic and it certainly have helped the company to stay on track and to achieve its vision of being a premier bank, as it has eventually became the top leading bank Asia and the Asia Pacific region. The mission has greatly equipped the bank with the right attitude and goals to help achieve its vision. By being committed to providing quality products and excellent customer service, it paved the way for great excellence which is a key factor to become an outstanding bank in comparison with the other competitors.

In the early 1990s, SCB has focused on emerging its strong franchises in Asia, Africa and the Middle East. Management concentrates on institutional, corporate and consumer banking and on treasury services – areas in which it has particular strength and expertise. The series of acquisitions that would increase SCB position in the emerging markets industry. Since 2000 the bank has accomplished a number of strategic alliances and acquisitions, which have expanded the customer and geographic reach and widened the product ranges (Sc.com,

Part of EnerMech’s strategy is to expand its global footprint into the western hemisphere, due to the location of the oil in gas in politically unstable countries for example Brazil and Colombia. Since 2010, oil production has flattened out entirely. In 2013, Brazil averaged only 2.7 million bpd of oil production, which is where it was three years ago. This is due to corruption and money laundering in the major Brazilian oil producing companies. http://oilprice.com/Energy/Energy-General/Problems-At-Petrobras-Mount-As-Brazils-Oil-Production-Stagnates.html Local content legislation is also obstructing production. With

Larger banks specialize in customer deposits due to the larger availability of liquidity present as a result of economies of scale and synergy; small banks tend to specialize in customer loans. To fund these operations, small banks have a great level of liabilities relative

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.

institutions. It has accommodated the financial needs of the government, public enterprises and private sectors (Khan, 1995; Khan and Khan, 2007). Public sector dominancy, among others, lead to inefficiency in the banking sector (Haque, 1997). The economic efficiency of the banks remained low that led to low savings and investment in the private sector which resulted in low growth

To facilitate the process of achieving this goal, JKB has strategic partnered in different capacity with various organizations. A good example is the selling of its 4.8 million shares, an approximate 4.8% of its market capitalization, to Odyssey Reinsurance Company, a strategic foreign investor. The investor possesses financial capabilities and competence needed to push the bank forward. Similarly, its partnership with Microsoft Jordan was also another strategic move worth noting. The partnership guarantees the bank continuance support and consultation on key technologies that are effective in supporting the bank’s activities. Adopting, integrating and aligning technology with the business strategy of an organization has been regarded as an essential source of organization’s competitive advantage. The role of technology in IT has particularly been emphasized (JKB 2011; Zawya 2011; Betz 2001).