Ethical and Financial Risks of Banking Industry Meltdown

Banking Industry Meltdown: The Ethical and Financial isks

The 2008 financial meltdown has been rated as the worst global economic crisis after the Great Depression of 1930. It shook the financial fabric of all the nations regardless of their economic status. It also led to the closure of most of the world's renowned banks and other financial institutions. Analysts have related the problems and the causes of this meltdown to the failure of the banks in their use of derivatives (Will, Handelman, Brotherton, 2013). Derivatives are defined as the financial arrangements that financial institutions formulate in order to hedge out against a future loss. The nature if these financial assets are that they are highly profitable and at the same time perilous (Beder & Marshall, 2011). The allure of profits is what baits the managers to adopt and use them in their institutions. This study focuses on the ethical dimensions…… [Read More]

Forces Leading to Changes in the Banking Industry

Forces Leading to Changes in the Banking Industry

The banking sector is one of the strongest industries in the whole wide world which has been thought to be one of the industries that is incapable of feeling the adverse effects of a recession. This is not to mean that the industry does not feel any effects, rather it means that the effects felt are not as wide scale as those felt by other industries such as the airline industry and oil industry. Members of the banking industry are the financial institutions and financial intermediaries which accept deposits and then use these deposits to finance their lending activities either directly to customers or through the capital markets. Typically, this industry is one which connects the customers who have capital deficits to those who have surpluses of capital.

The banking sector is thus critical in the financial system and the economy as…… [Read More]

E-Banking on the Banking Industry

The growth of Internet has led to a desire to understand the characteristics of the users, their reasons for using the service and what the users do when connected. A huge and expanding 'Internet watching' industry has progressed to provide such data. Some statistics can be collected directly from the Internet about traffic volumes and the geographical segmentation of its users and these provide a reasonably accurate picture of what is happening. The number of host computers which are linked to the Internet continues to expand every year by over 60 per cent and their geographic distribution is concentrated within a very few countries. U.S. dominate the amount of computing power present on the Internet, and accounts for over 60 per cent of all of the host machines. There are some differences in the ways that different countries have responded to this technology. Japan and France have a relatively lower…… [Read More]

Leadership Issues in the Banking Industry

ethical issues in leadership traits that are prevalent in the corporate world. The paper goes on to discuss the solutions that are possible in event of unethical conduct.

LEADESHIP ISSUES: BANKING INDUSTY

Ethics can be defined as those steps that safeguard integrity of an individual or a society. The focus of this paper is however limited to ethics in organizations, belonging specifically to the banking industry.

Acting in accordance with ethics translates into accommodating moralistic behavior into one's conduct. Hence ethical conduct in businesses, though not very popular, plays an important role in formation of a healthy society. For instance the banking sector of any economy plays the key role in circulation of money and hence in maintenance of economy. Since it deals in supplying and receiving funds, it is highly important for it to be ethical in practices in order to safeguard the pool of funds (James J. Lynch.…… [Read More]

Bank Lobby the Banking Industry

Thanks to innovation and technology, it is no longer necessary for customers to wait in lines to do their banking. Technology has taken "consumers out of lines, reducing their wait times, and giving them control" (DeMarco, 2004). ATMs have been around for decades, and have made routine withdrawal and deposit transactions easy to conduct without teller assistance. Today, this has expanded to online banking.

Banking customers can now do a variety of transactions online, from the comfort of their own home, 24 hours a day, 7 days a week. Online banking allows customers to make transfers, check balances, even pay their bills online, all with a few clicks of the mouse and no waiting. Spencer (2005) offers online banking as one of twenty-four ways to simplify a consumer's life. Offering online banking, as well as ensuring customers know how to utilize the service, not only alleviates lines in the bank…… [Read More]

Examining Proposition 37 and the Impact of a California Regulation on the Banking Industry

Proposition 37 from the standpoint of its impact on California businesses. Is it pro-business or anti-business? What specific advantages does it have? what, if any important benefits does it provide for California? Do they outweigh the costs or inconveniences that they may create?

California is the largest food producer in the United State, and therefore the world. The farmers in the central valley grow mostly vegetable crops, but there is a fair amount grain grown also. Because California farmers grow in an area which is arid and has a propensity for attracting a large number of pests, they have used foods that are sometimes genetically altered to ensure a crop that will produce a fair yield. These genetically altered crops may have adverse health effects which are not apparent in advertising by manufacturers.

The proposition, as it is written, would seem to be anti-business because it takes a significant advantage…… [Read More]

Santander Is in the Global Banking Industry

Santander is in the global banking industry. Based in Spain, Santander has operations in Europe and Latin America primarily. The current conditions for the banking industry in Europe are challenging, on account of a number of different factors. The euro crisis is perhaps the biggest issue facing the banking industry in Europe, and all European banks are exposed. Santander's exposure is thought to be relatively low as the company is well-capitalized, but some of the solutions to the problem that have been proposed would apply to all European banks, reducing the profitability of Santander if it were to face a situation where it had to increase its capitalization (AFP, 2011).

Beyond the euro crisis, the banking industry is facing a number of other challenges as well. Economic growth, particularly in Europe, is sluggish. This has the affect of reducing loan demand, creating an uncertain earnings environment (Putnis, Stimpson & Marais,…… [Read More]

Australia Banking Industry Should Australia

...other corporations and liailities etween financial institutions" are not covered in this scheme.

There are restrictions within the framework of this scheme in that each individual, small usiness or community organization will e ale to make "only a single claim against the scheme for each failure of a financial institution..." with all claims that are "relevant" eing aggregated. Third parties will excluded from assessing the scheme to avoid a conflict of their rights under the law for making claims against the insured with life insurance policies that recognize the eneficiary ownership rights just as they are recognized under the laws that presently exist. There is a proposed 28 days grace period so that policyholders are ale to find replacement policies. In the area of deposits "monetary limits would cap the cost of the scheme." (Council of Financial Regulators - Failure and Crisis Management in the Australian Financial System, 2006) Claimants…… [Read More]

Worked in the Banking Industry as an

worked in the banking industry as an administrative assistant. Extrinsic rewards are those external rewards that motivate behavior (Cherry, 2014). For this job, the extrinsic rewards to take the job and keep the job included a pay package and a range of benefits. There were medical and dental benefits, for example. The pay package also included a bonus, which was based on the operation's total sales volume. I received a percentage of sales as part of my package, which was designed to help me want to contribute to the success of the organization.

Intrinsic motivation is a little bit trickier. Psychologists understand intrinsic motivation as when someone engages in a behavior for the rewards that they believe they will reap. There is no external force that promises these rewards; they are simply what the person believes he or she will get for that behavior (Cherry, 2014). For me, this job…… [Read More]

Managing Risks in the Banking Industry Using the Basel Accords

isk Management Strategies for Developing Countries

The Basel Accords are among the most influential but misunderstood agreements in today's global finance. Developed in 1988 and 2004 (Deventer & Imai, 2003), Basel I and II have brought in a new era of international banking collaboration. Through quantitative and technological requirements, both accords have assisted balance banking regulation, supervision and capital adequacy requirements across the 11 nations of the Basel affiliates and many other developing market economies. Even when the Basel Accords have been used correctly and completely, neither agreement has, properly secured long-term stability within the country's banking industry.

The Basel Committee established Basel I and 11 to reduce credit risk via the minimum specifications of capital of banking institutions. Worldwide operating financial institutions are required to maintain most moderate amount of money based on a percentage of risk-weighted resources. Compared with Basel I, Basel II, which was released initially in…… [Read More]

Marketing in the Banking Industry Prescott Valley

Marketing in the anking Industry

Prescott Valley, Arizona

Abridged Literature Review

Reflective

Annotated ibliography

While there are many industries in the world that are growing at a rapid pace, one of them is exceedingly doing well. This is because it relies upon the monies and funds of its customers and greatly influences the other industries as well. This is the banking industry. Although a common part of every consumer's life, the banking industry has been growing and developing globally. To understand such growth, the attention instantly goes to the strategic and marketing techniques that have been applied by the people of this industry. Therefore, to gain a thorough and concise outlook of the marketing wonders that have continue to enable the banking industry to succeed at all fronts, the research topic that has been proposed for this research paper is 'marketing in the banking industry'. This topic will not only…… [Read More]

Banking and Blockchain Technology

Introduction

Blockchain technology is an innovative addition to the financial market. What began as a brainchild by the people or person known as ‘Satoshi Nakamoto’, blockchain technology has evolved and become something far greater than most would have imagined. Blockchain technology allows for digital data to be distributed (not copied), allowing for it to become the foundation for a new kind of internet. Businesses have used the technology to implement the use of digital currency like Bitcoin and promote growth of blockchain companies. Some of these successful blockchain companies are: Aeternity, Bitfury, DFINITY, ContentKid, and Blockphase. These companies represent the future of blockchain technology and how far it will go.

Background: What is Block-Chain Technology?

A recent innovation within the financial world, the mastermind behind blockchain technology is ‘Satoshi Nakamoto’. He is the pseudonym for a person or a group of responsible for developing, authoring, making, and deploying bitcoin, bitcoin…… [Read More]

Banking and History of Moneylending

Usury

The definition of usury has evolved over time. The basic premise is that a lender charges a rate of interest that is too high. Today, the standard for usury is defined in law, but initially the practice had no formal definition. Usury was traditionally banned in Christian society, has been criticized in Indian texts, and remains banned in Islamic society. Islamic banking, for example, requires that the lender either earn money from fees, or more commonly the lender exchanges the financing for an equity share, so profit-sharing, as a means of earning money without charging interest (IIBI, 2015)

During the time of King Henry VIII, usury was defined as charging interest. The idea of paying interest was new at the time, as a means of compensating the lender for the risk associated with lending. Interest, however, was not a common concept at least in England before this time. As…… [Read More]

UK Banking Services Use Michael Porter' Diamond

UK anking Services

Use Michael Porter' diamond model to determine the specific sources of national competitiveness that have boosted/hindered the success of UK banking product/service's?

Factor conditions

Demand conditions

Related and supporting industries

Firm strategy, structure, and rivalry

Government

Chance

Suppose you were the international marketing manager of a UK bank, what would you recommend to your government on how it could boost the elements of competitiveness?

Technological growth

Expanse in the market

Study of the mechanisms of production

Influencing merger options within the diverse market

Appreciating change in the organization

Discuss which international trade theory best explains the pattern of international trade development in UK banking and why

ibliography

Abstract

anking is a lucrative activity that must be understood to have varying avenues of performance in the world. The UK anking services organization has an expanse of services that have been beneficial to many businesses and monetary exemplifications in…… [Read More]

Financial Industry Responsible for the

It was irresponsible for banks to operate from a position of absentee management, and the careless ownership enabled reckless conduct from their "agents" who ran the day-to-day operation. While some blame must be placed on the public for continuing to spend at outrageous rates, the bank itself promoted and enabled such activity. Blankfein's argument that no one had been arrested is irrelevant since the issue at hand is whether the financial industry was responsible, not whether bank officials should be arrested. Banks made profound miscalculations concerning interest rates and loans, and should have been aware that their business practices were not feasible toward long-term success (Murphy).

Issue 7 places the theories of authors oger Lowenstein and obert Samuelson against one another. Lowenstein contends that government should bail out economic institutions; however, he does not argue that bailouts are necessary in order to assist the careless companies, but instead asserts that…… [Read More]

Shadow Banking Failure of Regulation During the Sub-Prime Crisis

shadow banking system, its role in the subprime mortgage crisis, and failures of regulation within the shadow banking system. The term "shadow banking system" was coined by PIMCO's Paul McCulley in 2007 (Spanos, 2012) and refers to a banking system that includes financial intermediaries that are involved in creating credit across the global financial system, whose functions are not subject to regulatory oversight (Investopedia, 2012). The question has been debated as to whether shadow banking meets the definition of true banking. Given that the two systems perform similar functions, including credit intermediation and maturity transformation, the two should be considered parallel systems (Noeth and Sengupta, 2011).

The term shadow banking is used to describe any provision of credit taking place outside of the traditional deposit-funded lending system. This definition includes institutions that range from pawnbrokers and consumer finance companies to securities dealers as well as firms that issue corporate bonds.…… [Read More]

Opportunities to Improve Relationship Banking at Al

Opportunities to Improve elationship Banking at Al ajhi Bank

In an increasingly globalized and competitive marketplace, many banking professionals today are faced with the need to develop informed and timely responses to changes in consumer demand, as well as fluctuations in the global economy that can have a positive or negative effect on investments. In affluent nations, this need has become especially pronounced as billion-dollar deals are routinely involved, and bankers working relationship banking operations stand to assist banks in attracting and retaining wealthy private and highly fluid commercial enterprises as long-term clientele. The enormous amounts of money that are involved make it important to formulate such responses in ways that add value to the banking operation including providing a competitive advantage. In some banks, relationship banking at this level is termed "privilege banking" or "prime account management," but the common feature of these business units is targeting high net…… [Read More]

Credit Risk in Banking in Agreement With the Basel Accords

Credit isk Management

Banks are an important part of the economy of any nation. Traditionally, the banks operate as financial intermediaries serving to satisfy the demand of people in need of various forms of financing. Through this, banks enable people to purchase home and businesses to expand. These financial institutions therefore facilitate investment and spending that are responsible for fueling the growth of the economy. In spite of their vital role in the economy, they are nevertheless prone to failure and just like other types of businesses, they also go bankrupt. Unfortunately, the failure of banks can have many and significant implications than any other type of business. As witnessed during the great depression, and in recent times following the global economic crisis and recession, the stability or lack of it in the banking system could trigger economic epidemics that would impact millions of people. With respect to this, it…… [Read More]

Social Responsibility Attitudes Actualities and Possible Areas of Advancement in Saudi Arabian Banking

CS in Saudi Arabian Banking

Social esponsibility: Attitudes, Actualities, and Possible Areas of Advancement in Saudi Arabian Banking

The global financial system has become increasingly smaller and more complex, with individual countries and their financial and banking infrastructures more intertwined and mutually dependent on each other. Because of this, understanding the role that banking systems and entities play in the social and political spheres is essential for policy makers and for individuals working in the banking sector. Of special importance are the social responsibilities that are borne by banks and the banking industry, which can vary greatly from country to country, based on a multitude of factors. The research described and proposed herein will yield a greater understanding of how these responsibilities are viewed by bankers in Saudi Arabia.

Scholarship on Saudi Arabia's banking industry has focused almost entirely on the financial implications for the country and the globe of…… [Read More]

Convenience Banking Bb& t - Convenience

Another issue worth mentioning is that prior to the acquisition of 2007, the BB&T employees were already being offered training programs in convenience banking. The programs were basically revolving around the techniques which would be implemented by the organization. In this order of ideas, the most focus was placed on the De Le ue coin counting machine and the Datacard 150i instant issue debit card machine. Employees were taught how to operate, maintain, balance and audit the according operations. Emphasis was also placed on the elationship Bankers in reference to the new account bounding process including free gifts and the efer-a-Friend process. The improvement plan sees the continued training programs which teach staff members how to most efficiently operate the new systems and how to explain their benefits and functionality to the customers. Also, BB&T should remain channelled on the emergent changes affecting the market and the industry and should…… [Read More]

Bankwest Is an Australian Banking Institution That

Bankwest is an Australian banking institution that provides banking services to all Australians equally. This bank is a relatively old institution. It has been in operation for over a hundred years building a reputation of community involvement and support that exudes compassion and benevolence. They do this by supporting many charitable projects and organizations in addition to a number of banking services such as Some of those being retail, business, institutional, investing funds management, "superannuation, insurance and investment and share broking" (Bankwest About 2011).

Bankwest was founded in 1895. At that time it was the Agriculture Bank of Western Australia. The government in Australia designed the bank to build up the farm production industry (Bankwest History 2011).

Several years later in 1945, the bank started trading on the stock exchange on experienced growth on the western area of Australia. Eventually becoming an industry leader in the market (Bankwest History 2011).…… [Read More]

Ethics Values Social Responsibility Bailout of Banking

Ethics, Values, Social esponsibility

Bailout of Banking Industry in United States

Ethical Compliance by Banking Industry

It is quite common in American history that government comes for the rescue of companies and organization in the time of financial crisis. General motors' acquisition was one such example where saving GM meant saving the nation. When Government takes measure for the welfare of any segment of the economy, it then becomes responsibility of the organizations that they comply with social responsibility and ethical standards so that it should respond to its social character and use the benefits provided by the government in the honest fashion. The recent bailout of banking sector by U.S. government, and the misappropriation and misuse of these funds, have raised a big question mark on the compliance to ethical standards by the bank.

United States government has a long history of bailing out its financial institutions. Some of…… [Read More]

U S Banking Financial Sector Legislation in

190). The Act also helped to create a "too-big-to-fail" mindset (Walter, 2004) that would have profound implications during the economic downturn of 2008 and beyond.

6.

Why did you include this piece of legislation in your list? The Act is described by Sammin (2004) as being "the biggest revision in financial services law since the Great Depression" (p. 653).

iegle-Neal Interstate Banking and Branching Efficiency Act of 1994

1.

What were the problems/conditions giving rise to the legislation? apid consolidations among the nation's banks were creating the potential for diverting needed banking resources from communities (ose, 1997).

2.

What were the major provisions of the Act? The iegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (hereinafter "the Act") contained the following major provisions:

A. Bank holding companies that are adequately capitalized and managed can acquire a bank anywhere in the United States one year after this law is enacted.…… [Read More]

Automated Banking in Our Future

In either case, privacy issues were known to be much more complicated than mere issues of personal secrecy. In fact, as Richard Posner suggested more than 20 years ago, there is a fundamental economics of personal privacy -- an economics that is in large part responsible for, and untiringly organic to, our Constitution.

It is feasible, therefore, that there are rudimentary, biological, economic bases at the very roots of humankind's insatiable desire and need for privacy and security. (Posner, 1983)

As Mcride's research further indicates, "In 2002, the Potomac Institute for Policy Studies initiated Project Guardian: Maintaining Civil Liberties in the Information Age. The effort is aimed at shepherding discussion from all qualified voices on issues central to the tradeoff between privacy and security, particularly as this balance is threatened, or is perceived to be compromised, by advances in technology. Guardian is enriching the discussion by establishing a rigorous, multiway…… [Read More]

Marketing in Banking the Topic Being Researched

Marketing in Banking

The topic being researched for this doctoral work is marketing in the banking industry. Before delving into the research too much for this topic, the researcher will first enumerate the goals that are to be attained. These goals, as also suggested by the parameters of the assignment, include meeting proper validity and reliability standards, avoiding bias, not posing hypotheses or ideas that are self-fulfilling prophecies or that have desired answers on the part of the researcher. There is also the consideration of using critical reasoning and strong logic skills so as to avoid making conclusions that are not supported by the evidence and/or that are completely contradicted by that same evidence (Leedy & Ormrod, 2010).

eliability & Validity

eliability and validity are two hallmarks of any good research and they must both be satisfied for the research outcomes to have any staying power or good ongoing reputation…… [Read More]

History of Swiss Banking in

The asylum automatically granted under the Swiss constitution was denied for those seeking it for religious reasons. y 1942, only 9,150 foreign Jews were legally resident in Switzerland, an increase of just 980 since 1931. It was the Swiss government that requested the German government to help it identify Jews by stamping all Jewish passports with a prominent letter "J," following the Nuremberg acts in 1935. "y 1942, acting at the behest of Switzerland's establishment and the majority of its people, its authoritarian police apparatus was dedicated to keeping the country 'pure' and to saving it from being 'overrun with Jews'." Until 1942, the working Jewish community in Switzerland was forced by the government to support Jewish refugees.

The other side of the German interest in Switzerland's banks was related to the business of Germany and the looting of conquered countries. y 1941, Germany had exhausted all of its foreign…… [Read More]

Banks Achieve High Performance Banking

Spatial tracking systems that make banks' floor plans and product positioning more effective;

5. Intelligent interactive displays that reflect the interests of the watcher;

6. Use of wireless tablet personal computers (PCs) for client interviewing; and,

7. Videoconference virtual experts for collaborative selling (56).

The same features that characterize high performance banks in their brick-and-mortar operations appear to relate to the use of technology as well, with the best performing banks having identified the optimum mix of services for the markets they serve. For instance, Grasing reports that, "Banks are taking a variety of approaches in implementing technology to make improvements in retail delivery. The methods differ, depending on the bank management's mindset toward the purpose of the software and its valued place in the new business or service delivery processes" (3). The main point in this area is that high performance banks apply technology in ways that help minimize…… [Read More]

Small Business - Banking Start-Up

Video Tape and Disc ental

entals

Catalog/Mail Order

etailing

Health and Personal Care Stores

etailing

Table 2: Comparisons of Most isky Small Business (BizStats.com, cited by Telberg, 2003)

An Engine of Economic Growth

More and more, Craig, Jackson and Thomson (2007) argue, policymakers perceive the small business sector "as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs." These authors stress that encouraging lending to small business purports the Small Business Administration's (SBA's) primary policy objective of the loan-guarantee program. In their study, Craig, Jackson and Thomson (2007) implement empirical research to focus on SBA-guaranteed lending, utilizing a panel data set of SBA-guaranteed loans, they assess whether SBA-guaranteed lending discernibly impacts local economic performance. Ultimately, these authors cautiously conclude that "There is a positive (although small) and significant relationship between the level of SBA-guaranteed lending in…… [Read More]

Financial Industry Regulation the Recent

Indeed, risk-seeking is pervasive in the financial industry, as competition compels banks to seek higher returns. Regulation such as capital requirements can help to reduce risk-seeking behavior, although the negative affect such regulations have on value can ultimately encourage at least some degree of risk-seeking. Despite this unintended potential consequence, regulation serves to neuter overly aggressive bankers and reduces risk in the banking system. Reducing the risk in the banking system is congruent with the government's objective of making effective use of taxpayer money.

A fourth consideration is that consumers demand regulation. hile this does not constitute an economic case for regulation, it must be understood that governments are not motivated by purely economic considerations. Consumers want to know that their deposits are safe and that they can access money when needed for homes, vehicles and small businesses. Consumer demand, while irrational, is a key driver in the level of…… [Read More]

Money Banking and Financial Markets

economic crisis in Europe and the increasing costs for European countries to borrow money and bail out other Euro countries in financial distress. The EU nations that use the Euro have experienced a crisis among certain countries with high debt requiring bailouts for Greece and Ireland and the likelihood that Portugal and Spain may also need a bailout. Postponing the restructuring of high interest debts has led to further crisis rather than resolving any of the problems faced by insolvent countries. Huge transfer payments from the more powerful Euro countries, like Germany, to the failed economies of Greece and Ireland have made investors nervous and led to less investment at a crucial time. The author suggests that the debts of troubled countries need to be restructured now in order to create a sustainable payment to increase confidence and secure future payments.

Creditors will also have to shoulder some of the…… [Read More]

MIS in Banking Automating Key

Assuming the increased attention to customer satisfaction saves at a minimum just 10 accounts, this will be worth approximately over $200,000 over the life of the accounts assuming a modest level of financial activity per account. The fixed costs of this recommendation are none as Google Analytics is free and the incremental IT-based costs of maintaining the linked code and the internal training could be covered by Overhead Cost Allocations already made to spread operating costs across the bank. The significant revenue upside is the potential for customer acquisition, customer retention and customer satisfaction from creating services that better align with the needs of customers over time. Differentiating banks' services on the ability to offer services that are more closely aligned to their needs than competitors can be a significant source of revenue over the long-term. Using Google Analytics as the basis of the strategy to complete this first recommendation…… [Read More]

Commonwealth Bank of Australia Retail Banking Service

Commonwealth Bank of Australia

etail Banking Service

Premium Business Services

Wealth Management

Marketing Strategies at CBA

Suggestions

Competitor Analysis

National Australia Bank

Australian and New Zealand Banking Group

Western Pacific Bank

Sustainable Competitive Advantage

Mobile Application

One Stop Solution

Commonwealth Bank of Australia

Commonwealth Bank of Australia:

Headquartered in Sydney, Australia, Commonwealth Bank of Australia or CBA is one of the four large banks of Australia. The bank was established in 1911 as a government bank, since then, it has seen tremendous growth. Today, Commonwealth Bank of Australia is a multinational bank with operations across United States of America (USA), United Kingdom (UK), Fiji, New Zeeland and Asia. The bank got privatized in 1996, with issuances of shares worth 1.2 Billion USD in 1991, 1.7 Billion USD in 1993, and 5 Billion USD in 1996. As of January, 2008, Commonwealth Bank of Australia was the second largest Australian listed company…… [Read More]