scholarly journals EMERGING TRENDS IN INDIAN BANKING SERVICES – CHALLENGES AND OPPORTUNITIES

2021 ◽  
pp. 74-78
Author(s):  
Dr.Raju Paila ◽  
Dr.Surya Prakasa Rao Gedela ◽  
Dr.Srinivasa Rao Pasala
Keyword(s):  
Banking Sector ◽  
Positive Impact ◽  
Banking System ◽  
Commercial Banking ◽  
Emerging Trends ◽  
Long Run ◽  
Global Banking ◽  
Challenges And Opportunities ◽  
New Business ◽  
Customer Services

The economic and financial environment in which the Indian banking system is operating is evolving continuously. Developments in global banking are likely to be conditioned by proposed regulatory changes aimed at ring-fencing commercial banking activities. Today banking is known as innovative banking. Information technology has given rise to new innovations in the product designing and their delivery in the banking and finance industries, customer services and customer satisfaction are their prime work. One of the most significant areas where IT has had a positive impact so on substitutes for traditional funds movement services. With the advent of electronic banking electronic funds transfer and other Similar products funds transfer within time frames which would have appeared impossible a few years age. With networking and inter connection new challenges are arising related to security privacy and confidentiality to transactions. Finally the banking sector will need to master a new business model by building management and customer services with a variety of products and controlled cost to stay in the long run.

EMERGING TRENDS IN BANKING SECTOR - ITS CHALLENGES AND OPPORTUNITIES

2018 ◽  
Vol 6 (26) ◽  
Author(s):  
Karigoleshwar .
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Major Change ◽  
Commercial Banking ◽  
Foreign Banks ◽  
Emerging Trends ◽  
Reserve Bank ◽  
Challenges And Opportunities ◽  
Multiple Regions

In financial sector the banking industry is the largest player, has also been undergoing a major change. Today the banking industry is stronger and capable of withstanding the pressures of competition. Today, we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry has been so stupendous that it has no parallel in the annals of banking anywhere in the world. The banking industry has experienced a series of significant transformations in the last few decades. Among the most important of them is the change in the type of organizations that dominate the landscape. Since the eighties, banks have increased the scope and scale of their activities and several banks have become very large institutions with a presence in multiple regions of the country.' The paper examines the new trends in commercial banking. The present era the cashless transactions, E-cheques, mobile wallets. The paper attempts to present the emerging trends and its challenges that recently emerged in the banking sector with special emphasis on digitization. It will be useful to the academicians, banking and insurance personnel, students and researchers. Common readers also know the latest innovations in banking sector

scholarly journals Banking sector competitiveness

2021 ◽  
Vol 10 (2) ◽  
pp. 195-202
Author(s):  
Champika Liyanagamage
Keyword(s):  
Sri Lanka ◽  
Business Models ◽  
Banking Sector ◽  
Positive Impact ◽  
Balance Sheet ◽  
Estimation Procedure ◽  
Commercial Banking ◽  
Sri Lankan ◽  
Level Data ◽  
Banking Institutions

Despite core banking, banks also engage in off-balance-sheet (OBS) market activities. In many developed banking industries, OBS activities have grown to be significant during the last two decades. This paper provides rather scarce evidence on the competitiveness among banks for OBS activities and its impact on the degree of banking sector competition in Sri Lanka. Panzar-Ross H statistic approach employing in this study to estimate bank competition used a comprehensive set of bank-level data of the whole commercial banking sector in Sri Lanka covering the period 1996-2018. The first-round analysis of the study uncovers substantial differences among banks concerning the OBS activities. EGLS panel estimation procedure applied in this study provides evidence for a lower level of competitiveness among Sri Lankan banks for OBS activities. More interestingly, the findings further reveal that the degree of competitiveness for OBS activities has a significant positive impact on the overall competitiveness of the banking sector in Sri Lanka.  These results suggest banking institutions re-visit their business models with greater emphasis on nonconventional banking activities in enhancing bank-level efficiency and hence positively contributing to the overall competitiveness of the banking sector.

MODERN TRENDS IN THE DEVELOPMENT OF THE GLOBAL BANKING SECTOR

2021 ◽  
Vol 2 (11) ◽  
pp. 143-149
Author(s):  
Natalia Yu. Lebedeva ◽  
◽  
Kheda M. Musayeva ◽  
Georgy O. Berkaev ◽  
◽  
...  
Keyword(s):  
Information Technologies ◽  
Banking Sector ◽  
Banking System ◽  
Digital Transformation ◽  
Financial Products ◽  
Global Banking ◽  
The World ◽  
The Creation ◽  
Widespread Dissemination

The article is devoted to the development of the global banking sector in the context of the digital transformation of the economy, the introduction of platform solutions and the creation of ecosystems that provide the client with a range of financial and non-financial products and services. The author highlights the trends and directions of development of the banking sector, among which many researchers and econo-mists note the presence of facts that are directly related to the conditions of modern social and state develop-ment. A set of trends in the development of the world banking system is proposed, which is directly related to the processes of digitalization of society and the widespread dissemination of information technologies.

Bank Capital Requirements after the Financial Crisis

2019 ◽  
pp. 706-735
Author(s):  
Mark E. Van Der Weide ◽  
Jeffrey Y. Zhang
Keyword(s):  
Financial Crisis ◽  
Structural Changes ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Capital Requirements ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Stress Tests ◽  
Global Banking

Regulators responded with an array of strategies to shore up weaknesses exposed by the 2008 financial crisis. This chapter focuses on reforms to bank capital regulation. We first discuss the ways in which the post-crisis Basel III reforms recalibrated the existing framework by improving the quality of capital, increasing the quantity of capital, and improving the calculation of risk weights. We then shift to the major structural changes in the regulatory capital framework—capital buffers on top of the minimum requirements; a leverage ratio that explicitly accounts for off-balance-sheet exposures; risk-based and leverage capital surcharges on the largest banks; bail-in debt to facilitate orderly resolution; and forward-looking stress tests. We conclude with a quantitative assessment of the evolution of capital in the global banking system and in the US banking sector.

scholarly journals Opportunities and Challenges of Online Banking in Nepal

The Batuk ◽  
2021 ◽  
Vol 7 (2) ◽  
pp. 37-51
Author(s):  
Sanita Mastran
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Negative Influence ◽  
Advanced Technology ◽  
Security And Privacy ◽  
Structured Interviews ◽  
Banking Services ◽  
Challenges And Opportunities ◽  
Technological Developments ◽  
Self Administered Questionnaire

This descriptive study aims at exploring the challenges and opportunities of e-banking in the Nepalese banking sector. The required data are collected from bank employees by applying a self administered questionnaire, semi-structured interviews and the desktop research. The findings demonstrate that banks expand to e-banking services in order to remain competitive, to update themselves with new technological developments and to minimize transaction cost and to facilitate customers. The major challenges faced the e-banking customers are non-familiarity with advanced technology, internet connection problems, problems regarding security and privacy. These challenges have a negative influence on the adoption of e-banking services by customers in Nepal. To overcome the challenges, Nepalese banking industry should invest on adopting the most secured and trustworthy e-banking system and educating customers on the use and importance of e-banking regularly.

scholarly journals The Impact of Macroeconomic variables on the credit provided by Saudi Banks: تأثير المتغيرات الاقتصادية الكلية على التمويل المصرفي في المملكة العربية السعودية (دراسة قياسية شملت البيانات من 1970م – 2012م)

2019 ◽  
Vol 3 (3) ◽  
Author(s):  
Eyas Jafar Abdel Rahim
Keyword(s):  
Banking Sector ◽  
Time Series Data ◽  
Positive Impact ◽  
Government Expenditure ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Bank Deposits ◽  
Long Run ◽  
The Impact

The study aimed to examine the impact of macroeconomic variables of the Saudi economy as in Gross Domestic Product (GDP), Government Expenditure (G), Economic Openness (OPE), Inflation Rate (CPI) and the Bank Deposits (DS) on the credit provided by Saudi banks (BF), on annual time series data between 1970-2012. To investigate this relationship, the study used Autoregressive Distributed Lag method (ARDL) to measure the long-run and short-run impact, At that the E-views 8.1 has been used for analyze the cointegration,the diagnostic, the reliability - stability tests, and the forecasting behavior of the model. The study found that (BF) is affected positively by (GDP) growth rate in the long-run. Also the (BF) has been affected negatively in the short and long-run by inflation rates (CPI) and government expenditure (G). Consequently the Contractionary Fiscal Policy in recent period will not lead to reduce the financial performance of Saudi banks, and the growth of (GDP) in the future will have positive impact on the financing capacity of the Saudi banking sector.

Efficiency Change in Pakistan Commercial Banking Sector: A Pre and Post Digital-Restructuring Analysis

2015 ◽  
Vol 3 (1) ◽  
pp. 30
Author(s):  
Sadaf Mustafa ◽  
Bilal Mehmood
Keyword(s):  
Technical Efficiency ◽  
Banking Sector ◽  
New Technology ◽  
Commercial Banking ◽  
Foreign Banks ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Efficiency Change ◽  
Reform Era ◽  
Global Banking

In this study we examine the technical efficiency of commercial banking sector of Pakistan. In recent past Pakistan’s commercial banking is making substantial investment and up-gradation in information and communication technology (ICT) in order to keep pace with global banking industry. Due to financial linearization the entry of the foreign banks with advance technology in the commercial banking sector has been increased that inclines other banks to adopt the new technology in order to earn more of market share. To justify the huge investments in computers and related technologies many question arises about the efficiency & productivity growth of the banks due to ICT. Accordingly, this study analyzes the efficiency of a sample of 11 commercial banks for the period 1998 to 2012. Using data envelopment analysis (DEA) we measure the Malmquist productivity index (MPI) to measure total factor productivity (TFP). In this study the time period (1998-2012) has been decomposed into pre-digital reforms (19982005) & post-digital reforms (2006-2012) period, in order to compare the efficiency change after the adaptation of IT by commercial banking sector. The variables are selected under intermediation approach. The results show that technical efficiency has been significantly increased in post-digital reform era and as a result TFP has also been boosted. The results show that MCB has consistently scored the highest efficiency & Malmquist TFP scores. 

Criteria for classifying banks as systemically important in the Russian banking system

2020 ◽  
Vol 26 (10) ◽  
pp. 2385-2406
Author(s):  
E.A. Kalacheva ◽  
A.S. Lamekina
Keyword(s):  
Banking Sector ◽  
Positive Impact ◽  
Banking System ◽  
Securities Market ◽  
Payment Systems ◽  
Correlation And Regression Analysis ◽  
Russian Economy ◽  
Total Capital ◽  
Macroeconomic Indicators ◽  
Systemically Important Banks

Subject. We address the criteria to classify banks as systemically important, their activities and the assessment of their impact on macroeconomic indicators. Objectives. The aim is to determine areas of regulation, based on criteria for classification of a bank as systemically important in the Russian banking sector, and taking into account its impact on the national economy. Methods. The study draws on methods of logical, statistical, and comparative analysis, as well as the correlation analysis to determine the correlation between financial indicators of systemically important banks and the country's GDP. Results. We offer the following criteria to determine systemically important banks, in addition to indicators used in the Russian banking practice: ‘interchangeability’ of a bank (based on the volume of payments in payment systems), ‘complexity’ (based on bank's activity in the securities market). Our correlation and regression analysis shows a significant positive impact of activities of too-big-to-fail banks on the Russian economy. The greatest impact on GDP is noted for indicators, like the volume of total capital, deposits of the population, loans to individuals. Therefore, the regulation can be aimed not only at preventing crisis situations and instability of the financial system, but can also be a tool for increasing the rates of economic growth. Conclusions. If the Bank of Russia uses the proposed additional criteria, it will enable to include in the list of such banks the internationally active credit institutions serving significant volumes of settlements in payment systems, and carrying out transactions with complex high-risk derivatives.

scholarly journals The impact of banking and external sectors on Mexican agriculture in the period 1995–2015

2018 ◽  
Vol 64 (No. 1) ◽  
pp. 36-49
Author(s):  
Benavides-Perales Guillermo ◽  
Tellez-Leon Isela Elizabeth ◽  
 Venegas-Martinez Francisco
Keyword(s):  
Agricultural Production ◽  
Banking Sector ◽  
Negative Relationship ◽  
Commercial Banking ◽  
Vector Autoregressive ◽  
Agricultural Exports ◽  
Agriculture Sector ◽  
Long Run ◽  
Development Banks ◽  
The Impact

Mexican agricultural production has been characterised by a lack of dynamism in recent years and is losing ground in terms of GDP. This may reflect the lack of funding from commercial and development banks. This research aims at studying the dynamics of the agriculture sector through econometric analysis using Vector Autoregressive (VAR) and Vector Error Correction (VEC) models in order to examine the short- and long-run relationships among agricultural production, terms of trade (ratio of agricultural prices and general price level), agricultural exports and lending from commercial and development banks. The main empirical findings, contrary to what was expected, is that even though there was a precarious level of funding from the banking sector, credit from commercial banking was higher than that from development banking in the last decades. Further, relative prices were found to have a negative relationship with agricultural exports, showing the importance of the external sector in agriculture.

scholarly journals Loan Waivers and Bank Credit: Reflections on the Evidence and the Way Forward

2019 ◽  
Vol 44 (4) ◽  
pp. 198-210
Author(s):  
Sudha Narayanan ◽  
Nirupam Mehrotra
Keyword(s):  
Financial Distress ◽  
Large Scale ◽  
Banking Sector ◽  
Banking System ◽  
Well Being ◽  
Policy Instrument ◽  
Negative Consequences ◽  
Executive Summary ◽  
Long Run ◽  
Macroeconomic Implications

Executive Summary In the past decade, farm loan waivers have become a policy instrument to alleviate the financial distress of farmers. Despite agreement on the theoretical rationale for such debt forgiveness and its deep contextual relevance, many fear that in the long run, loan waivers might vitiate the repayment culture in the farm sector and undermine the financial status of banks. At present, critiques of large-scale loan waivers rest on limited evidence. This article reviews and synthesizes existing research and available data on the implications of loan waivers, especially for the flow of credit to farmers from banks. On most of the issues, such as farmer well-being and repayment culture, there seems to be mixed evidence on the consequences of debt waivers. Credible evidence on macroeconomic implications is limited, mainly on account of methodological challenges. This article concludes that even if loan waivers are an inappropriate strategy to support farm incomes in sustainable ways, the wide-ranging negative impacts on the formal banking sector are perhaps overstated. A more fruitful approach would be to focus on whether loan waivers can be designed to reduce the possible negative consequences for the formal banking system as well as for macroeconomic system. The article identifies three possible instruments—loan insurance products that will help banks cope with the consequences of large-scale defaults. Second, to explore the creation of a distress fund that will cushion state finances, should there be a need for debt waivers. Third, it would be useful to consider the operation of debt relief commissions to have an ongoing process for debt waivers.

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