In the United States of America, separate financial regulatory structures are in place to regulate the Insurance and financial securities aspects of the banking sector at the State and the Federal level and. these regulatory agencies are controlled by the Federal government in conjunction with the State governments. In the United States of America, there are laws that are enacted to prevent money laundering, anti-terrorism laws, laws that are meant to prevent usury lending, anti-fraud and privacy laws, and laws to promote lending of money to people with small incomes, all this fall under the banking sector. This paper discusses the performance of the banking industry in America. In effectively discussing this aspect, this paper will give the industrial characteristics of the banking sector in United States of America. It will review the pricing, efficiency and profitability of the banksin America as well as analyze environmental factors that drive the Banking sector in America and thereafter access there impacts. This paper seeks to answer the following questions, What are the industrial characteristics of the Banking sector in United States of America? How efficient is the banking system in United States of America in providing services to its people? What are the environmental factors that influence the performance of the banking system in America and what are its implications? The banking system in America is regulated by The National Banking acts of 1863 and 1864 and they are responsible for the creation of the banking system in the United States of America and any other legislation created, needs to be in accordance to this laws. This act promoted the development of a currency that could be used all over the United States of America and it supported withholding of bank assets which includes financial securities offered by the treasury of the United States of America. The National Banking Act recognizes the office of the treasury regulator whose role is to control the value of the United States currency and ensure that banks don’t collude to manipulate the American currency, the dollar. Banks in United States of America are characterized by the notion of relationship banking. This characteristic of the United States Banking system is for the purposes of maintaining profitability . Relationship banking refers to a situation where banks provide financial services through an intermediary. In the United States of America, banks practice these aspects of financial system. The main aim of banks in applying the principles of relationship banking is to enable them acquire information about a client to be used in the long run. These aspects of banking is important because it reduces the cost of gathering information about a client through many transactions and the information gathered, banks can use them to introduce other services in the economy and finally through this system of relationship banking, banks and their clients build a reputation through constant financial interactions and therefore facilitates negotiations of low cost loans. The American banking system is also characterized by emergence of private banks. American banking system allows expansion of commercial banks opened by individuals or companies. This was made possible by the requirements of The National banking act of 1863 which allowed competition in the
Name: Professor: Banking in the United States of America is under the regulation of various State governmenst and it has numerous liabilities, and an example is that from 2010, its liabilities amounted to 43% of the budget of the National government…
This paper discusses the transformation in the banking system in the lead-up of the Global Financial Crisis. The Global Financial Crisis of 2007-2008 has been one of the most devastating financial crises of all time. The Global Financial Crisis has been described by many economists as the worst financial crisis after the Great Depression of 1930s.
The continent is a self governing country that is a part of the commonwealth federation. It is currently bounded by the Timor sea, Arafura sea, Torres strait, Coral sea, Tasman sea, Bass strait along with the Indian ocean (Verdier, p.11). It is the smallest continent found on the globe and the sixth largest country in the world.
The global crisis shook the very foundations of financial institutions and the stock market as share prices for small and large investment banks dropped significantly between mid 2007 and first quarter of 2008. Financial institutions lost nearly a third of their value in less than one year.
The United States of America uses the monetary unit of a Dollar. The United States Treasury prints money bills for distribution to the banks in form of bank reserves. The banking system provides the platform for reserving money for distribution to the public.
Regardless of the product or service that is being studied; it is noticeable that all of a sudden the information flow has become more rapid, regulatory structures have been oriented more towards free market structures and the movement of capital and permission to access local markets has become freer.
The current banking system is mainly concentrated on paper transactions and various forms of wire transfers. Any money that needs to be sent is delayed in proportion to the farness of its destination at least in the case of paper transactions. This delays business deals and this delay is also known to have destroyed many lives.
As information is so essential in banks, banks were the pioneers of the use of information technology. The first use of information technology in banks was started in 1950s when some of the banks in America
of China, which are considered to be some of the largest in the world on the basis of financial strength and market capitalization, have very little presence in the international banking structure. Renminbi, the Chinese currency which is also known as the Yuan, is not used much
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