ts of the developing countries but to those markets that are exposed in high risks because of their structure – for example the USA market is a risky one as USA is a global center of commerce; at the next level, USA has an extremely high export activity which means that appropriate mechanisms need to exist for the management of the relevant funds. Particular reference is made to the USA market because the specific market is closely related with current recession – a phenomenon that led to the need for immediate update of existing investment practices. More specifically, the last decade the firms operating in the US financial sector have promoted a specific investment tool: the sub-prime loans. These financial products were initially considered as an appropriate solution for a high profit; however, the potentials for repayment of the loans on which these products were based were not taken into consideration. At the same time, a specific framework of banking activities was formulated: the private banking (or wealth management). Private banking has been a secure (alternative) solution for those investors that would like to increase their wealth through innovative investments decisions and proactive investment planning. Indeed, the private banking helped the market to be kept stable when the recession was initially developed – in early 2008. However, the private banking has a weak point (which is considered also as its advantage): it is provided only to customers with high investment ability (those customers that their wealth is extremely high). When the recession first appeared the private banking, as noted above, helped to minimize – as possible – the effects of the crisis. However, it was soon proved that investors that had chosen the specific mode of banking support had suffered severe financial losses. Managers in the banking sector worldwide started then to integrate the private banking in other sectors of their organizations. The specific issue has
Question: Explain why large financial services groups are increasingly integrating their wealth management / private banking operations with other areas of their business. Explain why this is happening and discuss how to best structure a wealth management unit.
One of the key…
However, certain scenarios observed in that pursuit negatively affects the economy, spreading these effects to the entire public. The interest of this paper is to evaluate and assess the banking sector in that context. Specifically, retail and investment banking operations are considered.
Quality assurance is the main pillar of any business including profit and nonprofit organizations, government and nongovernmental organizations as it affects the level of success in the business. The assurance of quality in service sector brings the customer back to make use of the services and recommend the same to others which means increased rate of profit.
Economic development involves the improvement in the standards of living also referred to as economic wealth of a certain city, country or region to create a better habitat for its citizens. It involves the movement of the country's economy from a low-income economy to a modern day, high income economy, (Heyn, 1981).
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.
This paper demonstrates the result of deregulatory measures initiated by the authorities of the United States. The supporters of the deregulations believed that modern day clients preferred to do all of their business ranging from life insurance to commercial lending under one roof. And only a deregulated market could allow this to happen.
Derivatives are traded on certain organized exchanges but most of them are created in unregistered form so that they can be traded in over-the-counter markets. In the field of corporate finance, derivatives have
The discussion focuses on ring fencing of retail banking from investment banking in the United Kingdom while in countries such as Germany and France, hybridization of ring fencing and proprietary trading has been
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.
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