Surely, the central bank is part of the financial institution. It is the British government's financial authority for it hands out periodic currency resources and also controls the supply of credit and holds the reserves of other banks while it sells new securities in behalf of the British government. The other financial institutions include, foundations, non-depository financial institutions, trust companies and others. Many companies use the financial institutions in their daily business transactions. Therefore, the companies being serviced by the financial institutions above can choose which financial institution to use. One of the criteria for choosing is the services that they offer. The following paragraphs discusses the factors affecting financial institution.
The contextual environment is often approached covers many areas of business. These areas include technology, the economy, the nature of government, social attitudes and, of course, competitive forces all affect the climate in which business operates. For, the contextual environment sets the context for business to exist and it creates a climate of change with the five areas mentioned here.
Technology. New technological developments in the financial institutions result in advanced production processes. Harvey Jones(2006) wrote that online banking had definitely changed from a minority sport into a mainstream race at astonishing speed. Almost every financial institution, from the biggest in terms of assets in the banking sector to the smallest local building society has brought business transactions between the purchasers and the sellers at split second speed. With the advent of the automatic teller machines, the time needed to transfer funds has been decreased. People will just carry the ATM plastic to withdraw money at midnight or during holidays Moreover, one out of every five British citizen have their banking transactions online through the internet starting in the year 2005. This was the finding of Lloyds TSB. The number of online bankers have dramatically increased until our current time period 2007. Present studies show that young customers between the ages of 45 to 54 years of age to do their jobs through the internet comfortably and safely. are increasingly comfortable managing their finances over the web. Forgotten, depositors and person withdrawing money from the banks would have get a number from bank personnel and wait until their number had been called before depositing or withdrawing their money. The advent of the automatic teller machines has allowed bank withdrawals even at midnight or the wee hours of the morning and on Sundays and holidays. On line banking services include payment of statement of accounts and other bills, getting the bank statement printout, money transfer to another person very far away and management of bank debits.
Economy. general economic conditions and trends(Mcrae, 2007) must be taken into account when considering an organisation's activities. Mathew Scott(2003) stated Kevin Cohee, chairman and CEO of OneUnited Bank, looks at One Lincoln Street in Boston's financial district, he sees his vision for the future of black-owned
Management of Financial Institutions(see attached) The need for organisations to be aware of the influences of the external environment and the way in which developments in these influences can have a substantial impact on organisational success.
Financial Institutions, whether private or public, collect money from the general public or other financial institutions and generate interest income from investing cash inflows in financial resources like stocks, bonds, derivatives and others…
And with the passage of time, these financial institutions have not only increased vertically but also horizontally as well. in these days, not only banks but also credit unions and building societies also provide their services similar to one offered by the banks.
Risk is basically the possibility of a negative outcome from taking an action or decision and a lot of banks and financial institutions need risk management in order to minimize their risks. Risk is always going to be present in a financial institution and the higher the risk, the higher the return that the institution gets.
The institutions therefore have different governments and other international organization as the main shareholders. The most popular international financial institutions have multinationals shareholders although bilateral financial institutions are also classified as international financial institutions.
can be supposed to be the attributing factors towards the development of financial innovation. Innovations are mainly done to achieve the basic objectives of financial systems like facilitating the required payment instruments, increased savings, reduction in costs, etc.
The author states that financial institutions are very essential in accelerating developments. For developments to be achieved, people have to invest and for people to invest they must save. People therefore can only safe if there are places to save and can invest if there are financial institutions to lend them money to invest.
In this paper, I will try to explore the different roles of financial institutions to individuals and businesses. After which, I shall highlight the importance of financial tools and methods such as forecasting by taking the hypothetical role of manager of the high school division of Abel Athletics.
In the above country, the severe failures in managing risks related to banking activities led to the recession of 2008, which still negatively influences markets worldwide. The performance and the challenges of the USA banking industry are
These services require the skills of competent professionals; nurses, doctors, psychiatrists and pharmacists. Healthcare may be provided in health facilities or even at home. Working in healthcare usually involves