The impact of foreign Institutional Investment on bank's performance: Analysis of Indian Banking sector - Essay Example

The author of the essay "The impact of foreign institutional investment on banks performance analysis of Indian banking sector" assumes that foreign investment has been traditionally considered as the most valuable ‘vehicle’ for the increase of performance of an economy internationally; indeed, because many of the projects developed by governments worldwide are difficult to be completed – because of the cost involved in the relevant effort – the foreign capital has been proved to be an effective solution for the promotion of various governmental and non-governmental commercial plans in all industrial areas.

In the greater Asian region, the development of foreign investment – especially the foreign direct investment - has supported the improvement of performance of the national economies offering the necessary framework for the development of various industrial activities either in the public and the private sector. In order for a country’s economy to be developed it is necessary that all its sectors are appropriately regulated by the state enforcing equality between the private and the public sector.

In this context, principles applied on the private sector’s business plans could be equally applied on the private sectors’ projects and initiativesю Referring especially to the parameters of the successful management of information in modern organizations, Parnell supported that ‘sharing strategic information with lower-level managers and employees may enhance both job comprehension and organizational commitment’.