"Are banks losing their traditional role?" - Essay Example

Only on StudentShare

Extract of sample
"Are banks losing their traditional role?"

However, over the last few years, banking has changed radically and is expected to continue changing in a foreseeable future. The purpose of this essay is to discuss the principal functions of banks, the emerging challenges and the impact of market and global dynamism on the future of banks and banking institutions. The types of institutions performing banking business have been changing. Banks seem to be foregoing their traditional role. In many countries, the income coming off-balance sheet exceeds the income coming from the traditional intermediary roles in finances. Banks have become financial services organizations. The actual role of banks is increasingly becoming ambiguous since it is no longer clear what banks are or the details of the businesses they conduct. The actual definition of a bank seems to be missing. This has caused banks to be under intensive regulations compared to many financial institutions. Banks the world over are experiencing formidable challenges. Banking institutions have been losing their past monopolies and perceived comparative advantages. These attributes have underpinned the dominant positions taken by the banks in the financial systems. Banks are increasingly facing stiff competition from potential or actual suppliers of banking services (Fredrick 2005). ...Show more

Summary

Bank’s role Traditionally banks have played a crucial role in financial systems through playing an intermediary role in financial markets. Banks are considered to be asset transformers. They have created assets with one set of characteristics and accepted deposits with the other…
Author : vernoncollins
Save Your Time for More Important Things
Let us write or edit the essay on your topic
""Are banks losing their traditional role?""
with a personal 20% discount.
Grab the best paper

Related Essays

Traditional accounting pricing tools are not fit for the 21st century
The focus in this paper is on pricing strategy as the main part of every business. For any business the key factor is to set a differentiating image in the mind of the customer and once that differentiating factor is set in the minds of the customer one can easily play on prices of the product. However for this purpose one needs to have a grip on appropriate pricing strategy to get the best results.
18 pages (4500 words) Essay
Banks and Stocks
JP Morgan & Co. is into assisting clients in their business as well as wealth management program. JP Morgan Chase & Co. mainly deals in asset management, private banking, investment banking services related to treasury and securities and even commercial banking.
3 pages (750 words) Essay
Mega Banks vs. Community Banks
On the other hand, small community banks are called so because they do most of their business in local communities where they are operating. Hein et al (2003) assert that they depend more on ‘relationship banking’ at the local levels. They constitute almost 94 percent of all banks in the nation.
4 pages (1000 words) Essay
Manufacturing Overhead Paper
(Weygandt, Kimmel and Kieso, 2009). Manufacturing overheads can include costs like: i. Indirect material, ii. Indirect labor, iii. Electricity, gas and water bills etc for the operation of factory equipment during production, iv. Cleaning, repair and maintenance of machinery and equipment used during production, v.
3 pages (750 words) Assignment
Are the European banks riskier than the US competitors for the period 2002-2007? yang
The US housing market triggered difficulties which led the banks and other lenders underestimating the real risks for a longer period. The crisis spread throughout the global financial markets which destabilised the banking systems around the world. The impact spread beyond the financial system hitting the prosperity, economic growth and jobs throughout the world.
5 pages (1250 words) Essay
IT Evolution in Global Banking
With technology, most of the banking operations are now going towards electronic service and there is a substantial reduction in the number of customers that require physical banking services (Kamel 2005). Technology in the recent past has allowed customers to open accounts even when they do not have banks within the adjacent vicinity.
5 pages (1250 words) Essay
The role of quantitative easing in distorting equity markets leading to a distortion in the labor market.
However, since mid 2009, these economies are showing signs of recovery, although fragile. The problems that are still persistent are high rate of unemployment, low investment, low inflation and income level. According to experts, this economic growth rate is insufficient for bringing high standards of economic performance in these economies.
10 pages (2500 words) Research Paper
Role of Banks in Real Estate Financing in Saudi Arabia
Role of Banks in Real Estate Financing in Saudi Arabia. Real estate is one of the fastest growing sectors in the Kingdom of Saudi Arabia today. Many companies and individuals are constantly looking for opportunities to build their own homes or buildings to lease to others.
11 pages (2750 words) Research Paper
Case analysis
Wage expense will be debited in income statement of current period and wage payable will be shown as liability in the balance sheet for the current period. If
3 pages (750 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