Separation of Retail and Investment Banking Operations - Essay Example

Only on StudentShare

Extract of sample
Separation of Retail and Investment Banking Operations

The need to separate the two operations is the central focus of this paper, presenting arguments for and against the move in detail. Arguments in support of separation of retail and investment banking operations Financial crisis is not a new phenomenon for the banking sector in U.K and beyond. From time to time, economic hardships that have resulted in financial crisis have been observed around the world. Year 2008 global financial crisis adversely affected financial systems in various economies. This necessitated the need to manage risks in the financial sector, which is primarily dominated by banks. Following this and other affecting factors, regulation, control and reforming the banking sector is essential. Separation of retail and investment banking operations is a positive move to take in the context of the above pursuit. That is, regulation, control and reforming financial services providers. Separating retail and investment banks would mean that the each of the two becomes a standalone legal entity. It is important to note that retail banks handle short term and long term payments, accept deposits and offer credit services by lending funds (De Jonghe, 2010, p. 387). On the other hand, investment banks primarily deal with financial instruments. In this regard, they are also referred to as casino banks. ...Show more

Summary

Topic: Separation of Retail and Investment Banking Operations Institution Affiliation: Date: Introduction The banking sector is a crucial component of the economy. Provision of financial and consumption of financial services is essential in pursuit of economic and social growth and development…
Author : boydmcdermott
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Separation of Retail and Investment Banking Operations "
with a personal 20% discount.
Grab the best paper

Related Essays

Finance and Accounting Term Paper: Value of an MBA
Four financial advantages are associated to attaining an MBA degree: a better initial income, better reimbursement expansion, more steady continuing service, and a privileged possibility of taking part in the labor force (Kim et al, 1986).
10 pages (2500 words) Term Paper
Islamic Banking Operations and Instruments
This means that banking operations, as all business activities, can be related to the local culture, even if such perspective cannot be fully understood in the context of modern markets. The above view is verified through the following fact: Banks and financial institutions based on Islamic law have been already well established globally even this phenomenon would not be expected in the past.
30 pages (7500 words) Research Paper
Corporate finance.
Share price refers to the price of a single share that company issues for subscription. While taking decision on share subscription, an investor compares the share price with company’s financial statements.
6 pages (1500 words) Essay
Capital Markets and Investment Banking Process
This study is focused on the role played by investment bankers in the IPO process of a company and how it functions during the issue of shares made by the companies to the public. Next, the various factors related to the selection of asset classes while constructing an investment portfolio has been discussed in this study.
5 pages (1250 words) Essay
Capital Markets and Investment Banking Process Paper
Investment banks advise and assist its clients in issuing of debt and equity securities, mergers, acquisitions, diversification etc. Investment banker’s services are acquired when a company needs to raise funds in the financial markets usually through the issuance of new securities.
4 pages (1000 words) Essay
Underwriting and Research in Investment Banking
Conflict of interest that is apparent among different departments in investment banking results to some dreadfully and severe consequences such as increased cases of market manipulation that risk business activities and operations. For instance, in United Kingdom investment banking sector, different underwriters have a conflicting interest over whether to facilitate effective communication between the Chinese banks and United Kingdom banks.
1 pages (250 words) Research Paper
Approaches to banking regulation
Over the recent past decades, immense changes and growth in the financial sector across the globe have emerged. It is worth noting that, within the same period, a high number of countries across the world have suffered banking crises, which in some situations have resulted into costly bank failures and by extension severe economic disruption.
5 pages (1250 words) Essay
Financial Performance of Retail Banking in India
It should be noted that American and European continents were the richest regions in this world until a couple of decades before. However, global wealth is currently shifting from these regions to Asian region at present. The rapid economic growth of Asian countries such as India and China, despite of population growth problems, clearly indicates that.
10 pages (2500 words) Literature review
Financial Performance of Retail Banking in India
The economy of the country is tenth-largest in terms of nominal GDP and third-largest in terms of purchasing power parity. Reserve Bank of India (RBI) is the Central Bank, which controls the banking system of the country, and every banking decision and norm is not valid without the approval of the RBI.
12 pages (3000 words) Essay
Collateralized Loan Obligations
Trading of bonds supported by riskier corporate loans of the United States have heaved to their maximum level in 7 years, thereby assisting to increase a lending boom which is concerning the
7 pages (1750 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT