Commercial banks went through various changes and confronted traumas in the last 50 years from World War II with other intermediaries, financial market innovations and regulations. In very recent years, they have increasingly shifted from the traditional mode of financing loans and investments with deposits they collected to becoming brokers that originate loans (Hester 2002). Thereon, they securitize and lodge the loans with other less informed investors, who are correspondingly more vulnerable to risks and losses. Commercial banks today do not face the risk of holding these assets any longer and non-standard requests have evolved because of this shift (Hester). It is believed that non-bank lenders will replace this traditional role and function of commercial banks as sources of funding, but loans may be acquired with less accommodating terms and conditions.
Despite these unprecedented changes in the industry, much of the money has remained in commercial banks. Many clients still maintain…...
mlaBibliography
Hester, Donald. U.S. Banking in the Last Fifty Years - Growth and Adaptation, 2002. http://www.ssc.wisc.edu/econ/archive/wp2002-19.pdf
Wet Feet. Commercial Banking, an Industry Overview. Wetfeet.com, Inc., 2004. http://www.wetfeet.com/asp/industryprofiles_overview.asp?industrypr=7
Usury
The definition of usury has evolved over time. The basic premise is that a lender charges a rate of interest that is too high. Today, the standard for usury is defined in law, but initially the practice had no formal definition. Usury was traditionally banned in Christian society, has been criticized in Indian texts, and remains banned in Islamic society. Islamic banking, for example, requires that the lender either earn money from fees, or more commonly the lender exchanges the financing for an equity share, so profit-sharing, as a means of earning money without charging interest (IIBI, 2015)
During the time of King Henry VIII, usury was defined as charging interest. The idea of paying interest was new at the time, as a means of compensating the lender for the risk associated with lending. Interest, however, was not a common concept at least in England before this time. As a result,…...
mlaReferences
IIBI (2015). Islamic banking. Institute of Islamic Banking and Insurance. Retrieved December 2, 2015 from http://www.islamic-banking.com/prohibition_of_interest.aspx
Investopedia (2015). Definition of usury. Investopedia. Retrieved December 2, 2015 from http://www.investopedia.com/terms/u/usury.asp
Perry, M. & Schweitzer, F. (2002) Antisemitism: Myth and hate from antiquity to the present. Palgrave MacMillan: New York.
shadow banking system, its role in the subprime mortgage crisis, and failures of regulation within the shadow banking system. The term "shadow banking system" was coined by PIMCO's Paul McCulley in 2007 (Spanos, 2012) and refers to a banking system that includes financial intermediaries that are involved in creating credit across the global financial system, whose functions are not subject to regulatory oversight (Investopedia, 2012). The question has been debated as to whether shadow banking meets the definition of true banking. Given that the two systems perform similar functions, including credit intermediation and maturity transformation, the two should be considered parallel systems (Noeth and Sengupta, 2011).
The term shadow banking is used to describe any provision of credit taking place outside of the traditional deposit-funded lending system. This definition includes institutions that range from pawnbrokers and consumer finance companies to securities dealers as well as firms that issue corporate bonds.…...
mlaReference List
Armstrong, R., 2010. Q+A -- Regulating the shadow banking system. Fox Business. [online] Available at: [Accessed 20 April 2012].
Beckworth, D., 2010. "Deposit insurance" for the shadow banking system. [online] Available at: [Accessed 20 April 2012].
Drum, K., 2012. The shadow banking system speaks: It's not time for austerity yet. MotherJones. [online] Available at: [Accessed 20 April 2012].
Hsu, J. And Moroz, M., 2009. Shadow banks and the financial crisis of 2007-2008. Research Affiliates LLC. [online] Available at: [Accessed 20 April 2012].
Diversification of anking Returns Through
Greater Share of Non-Interest
Income and Off-alance Sheet Activities
The banking system was considered to be stable before the great financial crisis of 2007. The banking system faced the worst turmoil during that period due to the evolution of the nature of banking activities. anks started to employ diversify their sources of income. efore 2007, the one and only function of banks was to take deposits and lend money. Diversification of banking returns included many off-balance sheet activities and non-interest incomes into the features of the banks. The extra features are collectively known as shadow banking because of the lack of transparency in it. These activities increased the borrowing and lending and eventually, everyone was in a financial turmoil.
"The advent of shadow banking has fundamentally altered the nature of banking. Where once banks weremainly in the traditional business of taking deposits and making loans, they have come to…...
mlaBIBLIOGRAPHY
Calmes, Christian, & Theoret, Raymond. "Bank Systemic Risk and the Business Cycle: Canadian and U.S. Evidence." Paper presented at Annual Conference of SocieteCanadienne de Science Economique, Canada, April 27, 2011.
Calmes, Christian and Raymond Theoret. "Financial Services."Lifting the Veil: Regulation and Shadow Banking (2011): 1-6.
Calmes, Christian, & Theoret, Raymond. "The Rise of Shadow Banking and the Hidden Benefits of Diversification." Paper presented at C.D. Howe Institute Conference, Canada, April 2011.
John. H, Boyd and Gertler Mark. "Are Banks Dead? Or Are The Reports Greatly Exaggerated." NBER Working Paper Series (1995): 2-7.
190). The Act also helped to create a "too-big-to-fail" mindset (Walter, 2004) that would have profound implications during the economic downturn of 2008 and beyond.
6.
Why did you include this piece of legislation in your list? The Act is described by Sammin (2004) as being "the biggest revision in financial services law since the Great Depression" (p. 653).
iegle-Neal Interstate Banking and Branching Efficiency Act of 1994
1.
What were the problems/conditions giving rise to the legislation? apid consolidations among the nation's banks were creating the potential for diverting needed banking resources from communities (ose, 1997).
2.
What were the major provisions of the Act? The iegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (hereinafter "the Act") contained the following major provisions:
A. Bank holding companies that are adequately capitalized and managed can acquire a bank anywhere in the United States one year after this law is enacted. However, no banking firm can acquire another…...
mlaReferences
Alexander, K., Dhumale, R. & Eatwell, J. (2006). Global governance of financial systems: The international regulation of systemic risk. New York: Oxford University Press.
Coustan, H., Leinicke, L.M., Rexroad, W.M. & Ostrosky, J.A. (2004). Sarbanes-Oxley: What it means to the marketplace; from support to apprehension, accounting professionals express their thoughts. Journal of Accountancy, 197(2), 43-44.
Feinberg, R.M. & Reynolds, K.M. (2010). An examination of entry and competitive performance in rural banking markets. Southern Economic Journal, 76(3), 624-625.
Gup, B.E. (2003). The future of banking. Westport, CT: Quorum Books.
Contributions of Mohamed Talaat Pasha Harb to Egypt’s National Development and Banking System
Brief Biography
Born on 25th November, 1867 in Cairo’s El- Gammalia, Mohamed Talaat Pasha Harb is considered one among the greatest personalities who contributed to Egypt’s overall national growth and development. He studied art, science, economics, literature, and French. After acquiring a law degree, he commenced his career in the role of translator in the Royal Circuits’ Lawsuits Section, responsible for state- owned farmland. Though favoring free enterprise, he was quick to climb the rungs of the career ladder, landing the position of lawsuits section manager (53-75)3.
His subsequent posts as manager were at various organizations including Kom Ombo Company (a firm that actively reclaimed and sold land) and the Egyptian Real- Estate Company (where he ensured citizens of Egypt held most of the shares). He penned numerous books, including “The Economic Remedy of Egypt and Creating the bank for Egyptians…...
Marketing in the anking Industry
Prescott Valley, Arizona
Abridged Literature Review
Reflective
Annotated ibliography
While there are many industries in the world that are growing at a rapid pace, one of them is exceedingly doing well. This is because it relies upon the monies and funds of its customers and greatly influences the other industries as well. This is the banking industry. Although a common part of every consumer's life, the banking industry has been growing and developing globally. To understand such growth, the attention instantly goes to the strategic and marketing techniques that have been applied by the people of this industry. Therefore, to gain a thorough and concise outlook of the marketing wonders that have continue to enable the banking industry to succeed at all fronts, the research topic that has been proposed for this research paper is 'marketing in the banking industry'. This topic will not only aid in understanding the marketing…...
mlaBibliography
Berger, A.N. (2003). The Economic Effects of Technological Progress: Evidence from the Banking Industry. Journal of Money, Credit, and Banking, Volume 35.
Chaneta, D.I. (2010). Marketing: Packaging and Branding. Journal of Comprehensive Research, Volume 8, 19-30.
Flaunet, M. (2012). Banking Industry Challenges. Retrieved from Deloitte: http://www.deloitte.com/view/en_LU/lu/industries/banking-securities/banking-industry-challenges/#.UlTYD9KBlac
Jr., G.P., & Hoskins, L. (2006). The Case for Market-Based Regulation. Cato Journal, Vol. 26, No. 3, 469-487.
Cyber Attacks on Financial Institutions
Carmalia Davis
The finance industry has continued to receive more targeted and sophisticated cyber attacks from criminals. These criminals often email phishing campaigns to customers which have remained the most successful methods of targeting financial institutions. New innovations in banking, like online and mobile banking, have continued to create new vulnerabilities for cyber thieves. To minimize the efficiency of these attacks, banks have devised improved communication and educational tools for customers, and procedures for quick interventions in the event of an actual attack. However, beyond simply creating harmful software intended to hack online bank details, criminals have found ways to subvert the software and servers owned by prestigious financial institutions to make their phishing campaigns more effective; this technique is known as infrastructure hijacking (Pettersson, 2012).
In 1998, one of the foremost examples of infrastructure hijacking ever discovered is known as The Morris worm. This worm spread…...
mlaReferences
Cordle, I. P. (2014, August 7). TotalBank responds to computer security breach, Miami Herald. Retrieved from Comment by dkamari: are all of these cited in your paper? If not, do not list them.http://www.miamiherald.com/news/business/article1978822.html
Mossburg, E. (2015). A Deeper Look at the Financial Impact of Cyber Attacks. Financial Executive, 31(3), 77-80. Retrieved from http://eds.a.ebscohost.com.ezproxy.umuc.edu/
Crossman, P. (2015, March 5). Is Apple Pay a Fraud Magnet? Only If Banks Drop the Ball. Retrieved from American Banker: http://www.americanbanker.com/news/bank-technology/is-apple-pay-a-fraud-magnet-only-if-banks-drop-the-ball-107312
Dean, B. (2015, March 4). Why companies have little incentive to invest in cybersecurity. Retrieved February 18, 2016, from http://theconversation.com/why-companies-have-little-incentive-to-invest-in-cybersecurity-37570
Opportunities to Improve elationship Banking at Al ajhi Bank
In an increasingly globalized and competitive marketplace, many banking professionals today are faced with the need to develop informed and timely responses to changes in consumer demand, as well as fluctuations in the global economy that can have a positive or negative effect on investments. In affluent nations, this need has become especially pronounced as billion-dollar deals are routinely involved, and bankers working relationship banking operations stand to assist banks in attracting and retaining wealthy private and highly fluid commercial enterprises as long-term clientele. The enormous amounts of money that are involved make it important to formulate such responses in ways that add value to the banking operation including providing a competitive advantage. In some banks, relationship banking at this level is termed "privilege banking" or "prime account management," but the common feature of these business units is targeting high net…...
mlaReferences
About Us. (2012). Al Rajhi Bank. Retrieved from http://www.alrajhibank.com.my/corporate_
about_al_rajhi.shtml.
Constantinides, G.M., Harris, M. & Stulz, R.M. (2003). Handbook of the economics of finance.
Boston: Elsevier/North-Holland.
Terrorist Threat and the Commercial Sector:
Terrorist threat has emerged as one of the major global threats in the 21st Century that has significant impacts on global security. In the past few centuries, the nature and values of terrorism have slowly shifted and resulted in the emergence of different definitions or descriptions of terrorism. These different descriptions have not only been used by scholars but also by governments to broaden the phenomenon to political, judicial, psychosocial, and moral arenas. The differences in definitions of terrorism is attributed to the fact that these attacks are usually characterized by political motivations towards the use or threat of violence, intentional and pre-meditated actions, fear, psychological effects, and asymmetric warfare. The other aspects of these definitions include immorality, social coercion, and reactions. However, terrorist groups and activities continue to pose significant threats to every facet of the modern society including the commercial sector (aman, 2008,…...
mlaReferences:
A Military Guide to Terrorism in the Twenty-First Century 2007, Terrorist Motivations and Behaviors, Chapter 2, viewed 20 April 2013,
Brandt, B 2011, Terrorist Threats to Commercial Aviation: A Contemporary Assessment.
Combating Terrorism Center -- United States Military Academy, viewed 20 April 2013,
Catlin Group Limited 2012, A Business Approach to Terrorism, Catlin Group Limited Report,
e. no standardization) b) Diamonds: good medium of exchange
Peaches: perishable, differences in quality (i.e. no standardization) d) Grade a Honey: differences in quality (i.e. no standardization), difficult to transport e) Ice in a warm climate: perishable, difficult to store a. Over the long run, what is the primary determinant of the price level? Supply and demand, with price acting as an equilibrator b. Over the long run, what is the primary determinant of inflation?
The supply of money as compared to changes in productivity.
c. How is inflation related to the nominal interest rate?
Expectations of future inflation are one of the key factors in determining the nominal interest rate, the other being the 'core' interest rate, or the inflation-free level at which one is willing to lend money (which differs according to the issuer and associated risk premium).
4. Describe each of the following financial institutions. If it is a financial intermediary, describe…...
The asylum automatically granted under the Swiss constitution was denied for those seeking it for religious reasons. y 1942, only 9,150 foreign Jews were legally resident in Switzerland, an increase of just 980 since 1931. It was the Swiss government that requested the German government to help it identify Jews by stamping all Jewish passports with a prominent letter "J," following the Nuremberg acts in 1935. "y 1942, acting at the behest of Switzerland's establishment and the majority of its people, its authoritarian police apparatus was dedicated to keeping the country 'pure' and to saving it from being 'overrun with Jews'." Until 1942, the working Jewish community in Switzerland was forced by the government to support Jewish refugees.
The other side of the German interest in Switzerland's banks was related to the business of Germany and the looting of conquered countries. y 1941, Germany had exhausted all of its foreign…...
mlaBibliography
Bazyler, Michael J. Holocaust Justice: The Battle for Restitution in America's Courts. New York: New York University Press, 2003.
Borowiec, Andrew. "World's leaders gather in Geneva." The Washington Times. http://washingtontimes.com/world/20-5793r.htm .
Bower, Tom. Nazi Gold. New York: Harper Collins, 1997.
Clarke, William. "Nazi Gold: The Role of the Central Banks - Where Does the Blame Lie?" Central Banking, Volume VIII Number 1. Summer 1997. April 22, 2005. http://www.bigeye.com/nazigold.htm .
Internet Risk Management in the Banking SectorExecutive SummaryTechnological advancement in the banking industry, like in other economic sectors, has continued to increase. Banking organizations have allowed a wide array of products and services to become accessible and offered to customers via an electronic channel commonly known as e-banking or internet banking. According to Uppal, internet banking can be defined as a system that allows bank customers to access their accounts and available bank products and services information through a personal computer or other intelligent devices (39). E-banking offers numerous benefits to banks, businesses, and customers.For instance, customers can access any service they want without visiting a banks branch office. The technology is also convenient, easy-to-operate, time-efficient, and always available (it is not time restrictive). For banks, it has contributed to increased efficiency and competitiveness and reduced customer service time. The creation of new services for customers and small businesses, such…...
mlaWork CitedAlhawari, Samer, et al. “Knowledge-based risk management framework for information technology project.” International Journal of Information Management 32.1 (2012): 50-65.Atkins, Derek, et al. Reputational risk: a question of trust. Global Professional Publishing, 2006.Bodla, B. S., and Richa Verma. “Credit risk management framework at banks in India.” The IUP Journal of Bank Management 8.1 (2009): 47-72.Carlson, John, et al. “Internet banking: market developments and regulatory issues.” Manuscript, the Society of Government Economists, Washington DC (2001).Dorfman, Mark S. Introduction to risk management and insurance. (9th Edition). Englewood Cliffs, N.J: Prentice-Hall., 1998.Florina, Virlanuta, Moga Liliana, and Ioan Viorica. “RISK MANAGEMENT OF E-BANKING ACTIVITIES.” Annals of the University of Oradea, Economic Science Series 17.3 (2008). Georgescu, Mircea. “Some issues about risk management for E-banking, accepted paper series Social Science Research Network.” (2006).Hosein, Nasim Z. “Internet banking: Understanding consumer adoption rates among community banks.” Shantou University, Shantou, China (2010).Kumar, Muneesh, Mamta Sareen, and Eric Barquissau. “Relationship between types of trust and level of adoption of Internet banking.” Problems and Perspectives in Management 10, Iss. 1 (2012): 82-92.Nzevela, Anne K. The effect of internet banking risk management strategies on financial performance of commercial banks in Kenya. Diss. The University of Nairobi, 24 (2015).Ramakrishnan, Ganesh. “Risk management for internet banking.” Information Systems Control Journal 6 (2001): 48-51.Safeena, Rahmath, and Hema Date. “Customer perspectives on e-business value: a case study on internet banking.” Journal of Internet Banking and commerce 15.1 (2010): 1.Sergeant, Carol. “E-Banking: Risks and Responses.” U.K. Financial Services Authority (2000).Sokolov, Dmitri. “E-banking: risk management practices of the Estonian banks.” Institute of Economics at Tallinn University of Technology 101 (2007).Solanki, Virender Singh. “Risks in e-banking and their management.” International Journal of Marketing, Financial Services & Management Research 1.9 (2012): 164-178.Tarantino, Anthony. Essentials of risk management in finance. Vol. 53. John Wiley & Sons, 2010.Uppal, R. K. “Strategies to mitigate risk in internet banking.” International Journal of Management (2011).Zarei, Shapoor. “Risk management of internet banking.” International Conference on Artificial Intelligence, Knowledge Engineering, and Data Bases. Cambridge, UK. 2011.
Video Tape and Disc ental
entals
Catalog/Mail Order
etailing
Health and Personal Care Stores
etailing
Table 2: Comparisons of Most isky Small Business (BizStats.com, cited by Telberg, 2003)
An Engine of Economic Growth
More and more, Craig, Jackson and Thomson (2007) argue, policymakers perceive the small business sector "as a potential engine of economic growth. Policies to promote small businesses include tax relief, direct subsidies, and indirect subsidies through government lending programs." These authors stress that encouraging lending to small business purports the Small Business Administration's (SBA's) primary policy objective of the loan-guarantee program. In their study, Craig, Jackson and Thomson (2007) implement empirical research to focus on SBA-guaranteed lending, utilizing a panel data set of SBA-guaranteed loans, they assess whether SBA-guaranteed lending discernibly impacts local economic performance. Ultimately, these authors cautiously conclude that "There is a positive (although small) and significant relationship between the level of SBA-guaranteed lending in a local banking market and future per capita…...
mlaReferences
Authority, purpose and scope. (2002). EXTENSIONS of CREDIT by FEDERAL RESERVE BANKS (REGULATION a). Retrieved November 10, 2007, at http://www.questia.com/PM.qst?a=o&d=108945401 http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=57016e116171461106934124459aa8aa&rgn=div5&view=text&node=1-2:2.0.1.1.1&idno=12#12:2.0.1.1.1.0.1.1
Bannock, G. (2005). The Economics and Management of Small Business: An International Perspective. New York: Routledge. Retrieved November 12, 2007, from Questia database: http://www.questia.com/PM.qst?a=o&d=108945415
Bielski, L. (2006). On the Hunt for the Meaningful Segment: With a Deluge of Customer Information to Choose from, Bankers Struggle to See Their Customers in More Refined, Specific Ways. ABA Banking Journal, 98(9), 45+. Retrieved November 12, 2007, from Questia database: http://www.questia.com/PM.qst?a=o&d=5017258794
Brew, J. (2007). Taxes: The Forgotten Piece of Bank Profits Investigating Two Overlooked Strategies Could Put You on Your Way to Cutting Taxes by Half. Got Your Attention?. ABA Banking Journal, 99(5), 22+. Retrieved November 12, 2007, from Questia database: http://www.questia.com/PM.qst?a=o&d=5020964964
Strategic Plan & Analysis of New Commercial Endeavor
Planning
Mission statement
Louisville Community Development Bank was set up in the year 1997 as a consequence of a scheme by Louisville mayor Jerry Abramson and a team of business, community and religious leaders to ensure betterment of the Louisville inner city. The Bank's mission is to inspire economic growth with the West End and the Smoke town, Shelby Park and Phoenix Hill localities of Louisville, Kentucky, by offering a range of financial and development resources. (Louisville Community Development Bank from a Home Business to a Million-Dollar Plaza)
Why you have selected the business or department
As the sphere of Banking comes aptly well within my domain knowledge, I would choose for a current venture as that of a local community development bank. Louisville Community Development Bank (LCDB) is a profit oriented, FDIC guaranteed, commercial bank that focuses its functions in the 12 distressed inner city localities…...
mlaReferences
"Catholic Health Initiatives Commits $1 Million to Louisville Community Development Bank" Retrieved from Accessed on 26 September, 2004http://www.morethanabank.com/whatsnew100.htm
"Community Development Banks" Retrieved from Accessed on 26 September, 2004http://www.betterworldhandbook.com/action7(banks).html
"Directory: Louisville Community Development Bank" Retrieved from Accessed on 26 September, 2004http://www.morethanabank.com/staff2.htm
"Federal tax credit announcement spurs inquiries" (21 May, 2004) Retrieved from http://louisville.bizjournals.com/louisville/stories/2004/05/24/story3.html
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