Commercial banking history is considered as a rather hodgepodge in nature as over the period of time, there has been different attempts to make regulations. There were two different periods during which there were clear and definite attempts by the regulators to completely…
was relatively fragmented in nature as there were different and often contradictory laws that were put in place to basically govern the commercial banking sector of the country. This era of fragmented laws however, allowed banks to remain profitable as under regulations they were specifically given the different products and services to sell rather than allowing them freely to engage themselves into activities that were more speculative in nature. This was also due to the fact that a mismatch between the different regulatory environments of the country allowed commercial banks to basically insulate themselves against the different economic shocks as their overall scope was limited through these regulations. For example, under special legislative process, banks were given the monopoly over certain products such as checking accounts which basically restricted other financial institutions to float any such product. Further, the legislations also allowed the banks to avoid direct competition as there were restrictions on the inter-state opening of the branches. It is also critical to understand that the banks were specifically restricted to offer interest rates on the checking accounts thus restricting them to engage into price wars and keep themselves under restricted conditions so as to basically allow all the banks to operate at even terms.
The era before 1980s was therefore an era which basically restricted the encroachment of other institutions to take over the role of banks thus allowing banks to compete among themselves rather than competing with a variety of other financial institutions thus increasing the overall competition within the industry.
The era after 1980s and up to 1999 was an era which made a swift transition from the above sets of regulations and as such the overall position enjoyed by the banks were taken over and as a result many banks failed and insolvencies increased. This has been the result of gradual changes in the regulations which ...
Cite this document
(“Commercial Banking in the 1980's Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/385042-commercial-banking-in-the-1980s
(Commercial Banking in the 1980'S Essay Example | Topics and Well Written Essays - 1250 Words)
“Commercial Banking in the 1980'S Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.net/miscellaneous/385042-commercial-banking-in-the-1980s.
This essay discusses a number of factors that were responsible for the instability of commercial banking industry in USA. A chain of deregulations facilitated other modes of financial service business like credit unions, thrifts and insurance and security firms – to venture into provinces once predominantly kept for commercial banks.
The author suggests that the chief attributes of relationship lending are the thorough inspection of the organization by the bank as well as the contractual agility. Lending relationships, particularly those that are long-term associations make it simpler for small sized organizations to have access to outside funds.
This paper will look at the role that the Indian government does play in increasing competition, stability and efficiency in Indian banking sector. The Indian financial field is made of a large network of commercial banks, financial institutes, stock exchanges and financial instruments.
The regulatory environment created by the Glass-Steagall Act to create divisions in the banking system gave way to a deregulatory atmosphere where commercial and investment activities by one firm where permitted. In order to understand how repealing legislation implemented during the Great Depression led to the global banking crisis of 2007 – 2008, the paper will provide a historic background for the legislation of the Glass-Steagall Act, why the banking institutions wanted to repeal the legislation, and examine the creative financial instruments in the banking industry when the Glass-Steagall Act was repealed.
Like any other kid, she had her childhood interests and participated in sports, piano classes, debates, and enjoyed public speaking and reading politics books. She lived from October 1925 to April 2013. Born as Margaret Hilda Roberts, she attended a local grammar school, then Grantham girls High school, and later got accepted at Oxford University to study chemistry and science (“Margaret,” biography.com).
Many were lured to California by tales of employment and opportunities for wealth and a better life. Due to their existence outside the normal system, exact numbers are difficult to ascertain. However, all estimates agree that there was a very high rate of unauthorized immigration into Los Angeles during this period ("California: Internal").
But much more critical in this respect is the near complete retention of the armed forces that defended the Soviet Union in its heyday, by the Russian Federation. And added to this is the utter discomfiture and helplessness of the west about the near intact if not more dangerous arsenal of the deadliest weapons of mass destruction still at the disposal of Russian Federation.
An organization, typically a banking organization, which specializes in imparting such services, is termed as carrying on investment banking. While an entire entity may be devoted to investment banking, hallmarked by bulk banking, it is not unusual to observe investment banking arms within umbrella banking setup.
Through the Islamic financial system there is a facilitation of services such as lending, borrowing and investing on a risk-sharing basis. The Islamic financial system can be called a value-based mechanism and the main target is to ensure “moral and material wellbeing” of the persons as well as the whole community.
The writer states that banking institutions are at risk of high initial capital investment especially where a huge amount is required to act as security for the customers’ deposits in case of liquidation. He proposes to monitor the operations of all subsidiaries and comply with regulation requirement of the host country when setting up subsidiaries.
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Commercial Banking in the 1980's for FREE!