banking sector short essay

Essay on Banking Sector

Students are often asked to write an essay on Banking Sector in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Banking Sector

What is the banking sector.

The banking sector is a part of our economy that provides financial services. It includes banks, credit unions, and other institutions. These places help us save money, get loans, and make payments. They play a big role in our daily lives and the economy.

Types of Banks

Banking services.

Banks offer many services. They keep our money safe in savings and checking accounts. They give loans for homes, cars, or businesses. They also provide credit cards, which let us borrow money to buy things and pay it back later.

Importance of the Banking Sector

The banking sector is very important. It helps us save and invest money. It makes it easy for us to buy things and pay bills. It also helps businesses grow by giving them loans. Without banks, managing money would be much harder.

Challenges in the Banking Sector

250 words essay on banking sector.

The banking sector is an important part of our society. It includes banks, which are places where people can keep their money safe. Banks also give loans to people and businesses, so they can buy things like houses or start new companies. This helps our economy grow.

There are different types of banks. Some are big and have branches all over the country, like State Bank of India. Others are small and only have a few branches, like local co-operative banks. There are also foreign banks, which come from other countries but have branches in our country.

Services Offered by Banks

Banks offer many services. They let us save our money in savings accounts. They also let us borrow money through loans. Banks even help us send money to other people through services like online banking and money transfers. These services make our lives easier and help us manage our money better.

Role of Banks in Economy

Banks play a big role in our economy. They help businesses grow by giving them loans. They also keep our money safe and help us save for the future. Without banks, it would be hard for our economy to grow and for people to manage their money.

In conclusion, the banking sector is a key part of our society and economy. It provides important services like savings accounts and loans, and helps businesses grow. It makes our lives easier and our economy stronger.

500 Words Essay on Banking Sector

There are different types of banks that provide different kinds of services.

1. Commercial Banks: These are the most common type of banks that we see around us. They provide services like accepting deposits, giving loans, and basic investment products.

4. Central Banks: These are not like other banks. Every country has one central bank that manages the country’s money supply and keeps the economy stable.

Roles of the Banking Sector

Loans for Growth: Banks give loans to people and businesses. This money helps businesses to grow and create jobs. People use loans to buy homes, cars, or pay for education.

Managing the Economy: Banks, especially the central bank, help to manage the country’s economy. They control how much money is in the economy. Too much money can cause prices to go up very fast (inflation). Too little money can make the economy slow down.

Banking Sector and Technology

The banking sector is very important for our daily life and the economy. It helps us save money, gives loans for growth, and keeps the economy stable. With the help of technology, banking is becoming easier and faster. But we also need to remember about the safety of our money.

That’s it! I hope the essay helped you.

Apart from these, you can look at all the essays by clicking here .

Achievers Corner

Topper's Interview
About Civil Services
UPSC Prelims Syllabus
GS Prelims Strategy
Prelims Analysis
GS Paper-I (Year Wise)
GS Paper-I (Subject Wise)
CSAT Strategy
Previous Years Papers
Practice Quiz
Weekly Revision MCQs
60 Steps To Prelims
Prelims Refresher Programme 2020

Mains & Interview

Mains GS Syllabus
Mains GS Strategy
Mains Answer Writing Practice
Essay Strategy
Fodder For Essay
Model Essays
Drishti Essay Competition
Ethics Strategy
Ethics Case Studies
Ethics Discussion
Ethics Previous Years Q&As
Papers By Years
Papers By Subject
Be MAINS Ready
Awake Mains Examination 2020
Interview Strategy
Interview Guidance Programme

Current Affairs

Daily News & Editorial
Daily CA MCQs
Sansad TV Discussions
Monthly CA Consolidation
Monthly Editorial Consolidation
Monthly MCQ Consolidation

Drishti Specials

To The Point
Important Institutions
Learning Through Maps
PRS Capsule
Summary Of Reports
Gist Of Economic Survey

Study Material

NCERT Books
NIOS Study Material
IGNOU Study Material
Yojana & Kurukshetra
Chhatisgarh
Uttar Pradesh
Madhya Pradesh

Test Series

UPSC Prelims Test Series
UPSC Mains Test Series
UPPCS Prelims Test Series
UPPCS Mains Test Series
BPSC Prelims Test Series
RAS/RTS Prelims Test Series
Daily Editorial Analysis
YouTube PDF Downloads
Strategy By Toppers
Ethics - Definition & Concepts
Mastering Mains Answer Writing
Places in News
UPSC Mock Interview
PCS Mock Interview
Interview Insights
Prelims 2019
Product Promos
Daily Updates

Indian Economy

Make Your Note

Banking Sector: Opportunities and Challenges

01 Jan 2024
15 min read
GS Paper - 3
Banking Sector & NBFCs
Growth & Development
Monetary Policy

This editorial is based on “Banks are fine, but there are risks” which was published in The Hindu Business Line on 029/12/2023. The article points out that State finances, an overheated stock market, and inter-connected lending are concerns, even as banks are undeniably in good health.

For Prelims: Banking Sector , Reserve Bank of India , Non-Performing assets , Prompt Corrective Actions .

For Mains: Challenges in the Banking Sector

In recent times, there has been a noticeable resurgence in India's banking system following almost a decade of grappling with escalating bad loan challenges. Thanks to the concerted efforts of policymakers and the proactive measures taken by banks, the sector is currently on a more secure footing.

Nevertheless, considering historical patterns, the positive trajectory for Indian banks remains susceptible to the impact of monetary policies and external uncertainties, such as geopolitical risks.

How have Indian Banks Evolved over the Years?

In the period before Independence (up to 1947), the Swadeshi Movement led to the establishment of numerous small, local banks, most of which faced failure primarily due to internal frauds, interconnected lending, and the amalgamation of trading and banking activities.
Indian banks enabled the consolidation of resources, mobilised through retail deposits, towards a limited number of business families or groups, consequently overlooking the flow of credit to the agriculture sector.
The government successfully severed the link between industry and banks by nationalising 20 major private banks in two phases (1969 and 1980) and introducing priority sector lending in 1972.
These measures led to a transition from 'class banking' to 'mass banking' and had a favourable effect on the widespread expansion of branch networks in rural India, substantial mobilisation of public deposits, and increased credit flow to agriculture and allied sectors.
During this period, significant reforms were implemented, including the issuance of new licences to private and foreign banks to introduce competition, improve productivity, and enhance efficiency.
These changes involved leveraging technology, introducing prudential norms, offering operational flexibility with functional autonomy, prioritising the implementation of best corporate governance practices, and fortifying the capital base in accordance with Basel norms .
From 2014 onward, the banking sector has embraced the JAM (Jan-Dhan, Aadhaar, and Mobile) trinity, and granted licences to Payments Banks and Small Finance Banks (SFBs) to attain last-mile connectivity in the pursuit of financial inclusion.

What is the Current Status of the Indian Banking Regime?

Not too long ago, Indian lenders faced a dire situation with bad loans, leading to a spike in stressed assets. Government-owned banks were particularly affected, with gross NPAs reaching 14.6%.
To counter these challenges, the government and RBI implemented a 4R strategy— Recognize NPAs transparently, Resolution and recovery, Recapitalization of PSBs, and Reforms in the financial ecosystem.
After grappling with seething government and bad loan issues for nearly a decade, the Indian banking system has experienced a remarkable turnaround in 2023.
In FY23, the gross NPA ratio for banks in India plummeted to 4.41%, the lowest since March 2015. Cumulatively, PSBs crossed the Rs 1 lakh crore-mark in profit.
As per RBI's Financial Stability Report , the capital-to-risk-weighted assets ratio (CRAR) stands at a robust 16.8%, indicating a strong financial position for scheduled commercial banks.
This underscores the sound financial health of Indian banks, reflecting positively on their ability to absorb potential risks and maintain stability in the financial system.
Reforms introduced over the past eight years focused on credit discipline, responsible lending, improved governance , and the adoption of technology. Mergers of PSBs were instrumental in reducing NPAs.
Banks exhibit strong liquidity levels , measured by funds available for lending. Despite the RBI’s recent monetary stance of "withdrawal of accommodation," banks maintain a Liquidity Coverage Ratio at least 20% higher than the minimum requirement.
Additionally, major banks, including SBI, PNB, and Union Bank, demonstrate a capacity to lend "higher for longer," with Credit-Deposit ratios below 72%.

What Obstacles Lie Ahead for the Indian Banking Sector?

Bank lending for upcoming infrastructure and capital investments, particularly those linked to State government entities, poses a risk of defaults due to stretched State finances.
Banks are advised to set internal exposure limits based on fiscal/financial assessments of individual States.
The seemingly runaway stock market , creating an illusion of wealth, presents a risk to retail exposures. Increased demat accounts and high PE ratios across sectors are indicators of this risk.
Integrated supervision and rigorous stress tests on retail portfolios are recommended to address this emerging risk.
The possibility of default becoming a contagion due to interconnected lending and lax governance norms poses a significant challenge.
Focused risk monitoring is necessary, emphasising that regulation cannot substitute for good governance.
The re-globalization of the world and geopolitical shifts may challenge Small and medium-sized enterprises(SMEs), especially in the face of Free Trade Agreements (FTAs) and regional ambitions.
Banks need to carefully assess and prepare for potential risks to SMEs, considering potential disruptions to cash flows.
The character of liabilities is changing with digitisation and evolving consumption trends, impacting retail deposits. Banks with higher credit-deposit ratios may face challenges in liquidity coverage.
A structural shift in Indian savings requires caution and prudence from bankers, necessitating a careful watch amidst favourable conditions.

How Can the Indian Banking Sector be Fortified Moving Ahead?

The second tier could include numerous mid-sized banks, including niche institutions, with a widespread presence across the economy.
Consistent with these suggestions, the government has already consolidated certain PSBs and taken measures to establish entities like a Development Finance Institution (DFI) and a Bad Bank.
Essentially, these specialised banks would facilitate financial access in specific areas such as retail, agriculture, and MSMEs.
Additionally, establishing proposed DFIs or niche banks as specialised entities would provide them with access to low-cost public deposits and enable improved asset-liability management.
Enhanced risk management can be achieved, and neo-banks have the opportunity to harness this technology for advancing digital financial inclusion and supporting the increased growth of an aspiring and emerging India.
In the realm of Indian banking, the implementation of technologies such as Blockchain holds the potential to facilitate prudential supervision, making oversight and control over banks more streamlined.
Until now, the occurrence of public sector banks failing has been infrequent, primarily due to the concealed sovereign guarantee, instilling greater trust in the public. Nevertheless, the ongoing privatisation of PSBs challenges this assurance.
Consequently, the upcoming wave of banking reforms should emphasise the necessity for increased individual deposit insurance and efficient orderly resolution mechanisms. This aims to reduce moral hazard and systemic risks, minimising the financial burden on the public treasury.
It could be beneficial for Distinctive Banks to consider listing on a reputable stock exchange and embracing the ESG (Environmental, Social Responsibility, and Governance) framework. This approach aims to enhance value for stakeholders over the long term.
To address vulnerabilities, the government should refine regulatory measures, enabling banks to develop diversified loan portfolios , instituting regulators for specific sectors, and granting increased authority to handle deliberate defaults effectively.
In order to establish a responsive banking system in a dynamic real economy, there is a requirement to promote the growth of the corporate bond market, thereby transitioning away from a bank-centric economic model.
Develop and implement internal risk models tailored to individual States, similar to the Bank Exposure Risk Index , to assess potential risks associated with lending to State government entities and infrastructure projects.
Recognize the changing nature of liabilities influenced by digitisation and evolving consumption trends. Develop strategies to adapt to shifts in retail deposits, especially in Tier 1 and 2 centres.

Conclusion

While celebrating the current success of the banking sector, it is crucial to adopt a proactive and vigilant stance to navigate the complexities and uncertainties of the times we live in.

Q. Despite the robust performance of the Indian Banking sector in the recent past, certain risk factors pose potential challenges. Elaborate and give suitable measures. (250 words)

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims .

Q1. With reference to the Banks Board Bureau (BBB), which of the following statements are correct? (2022)

The Governor of RBI is the Chairman of BBB.
BBB recommends for the selection of heads for Public Sector Banks.
BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

Ans: B

Q2. Consider the following events: (2018)

The first democratically elected communist party government formed in a State in India.
India’s then largest bank, ‘Imperial Bank of India’, was renamed ‘State Bank of India’.
Air India was nationalised and became the national carrier.
Goa became a part of independent India.

Which of the following is the correct chronological sequence of the above events?

(a) 4 – 1 – 2 – 3 (b) 3 – 2 – 1 – 4 (c) 4 – 2 – 1 – 3 (d) 3 – 1 – 2 – 4

Mains

Q. Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for the financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (2016)

Skip to main content
Skip to secondary menu
Skip to primary sidebar
Skip to footer

A Plus Topper

Improve your Grades

Banking In India Essay | Essay on Banking In India for Students and Children in English

February 14, 2024 by Prasanna

Banking In India Essay: A bank is a financial body that accepts deposits and channels them into lending through loans or capital markets. Banks thus, connect customers with lack of funds 1 and those with extra capital.

“Money plays the largest part in determining the course of history.” -Karl Marx

You can read more Essay Writing about articles, events, people, sports, technology many more.

Long and Short Essays on Banking In India for Kids and Students in English

Given below are two essays in English for students and children about the topic of ‘Banking In India’ in both long and short form. The first essay is a long essay on Banking In India of 400-500 words. This long essay about Banking In India is suitable for students of class 7, 8, 9 and 10, and also for competitive exam aspirants. The second essay is a short essay on Banking In India of 150-200 words. These are suitable for students and children in class 6 and below.

Long Essay on Banking In India 500 Words in English

Below we have given a long essay on Banking In India of 500 words is helpful for classes 7, 8, 9 and 10 and Competitive Exam Aspirants. This long essay on the topic is suitable for students of class 7 to class 10, and also for competitive exam aspirants.

The word ‘bank’ was borrowed from European languages, literally meaning ‘bench’ or ‘counter’. Banking system evolved in the 14 th century in Italy. By the 18 th century, merchants of London had started storing their gold with goldsmiths who charged a fee and issued receipts. A banker is a person who discharges his duties in the form of operating customer accounts and, paying and collecting cheques.

Banks borrow money by accepting the l money deposited in current accounts, by accepting term deposits and issuing securities on banknotes and bonds. They also create pew capital by giving loans. Banking activities can be for retail, in which the customers and small businesses are involved directly with the bank; for businesses for large corporate houses and for investments.

There are various types of banks such as commercial banks (which are engaged solely in banking activities), investment banks (for capital market activities), cooperative banks (non-profit banks), postal savings banks (associated with postal systems) and private banks (managing the assets of high net worth people).

In India, banking has its origin in the Vedic period. It is believed that the transition from money lending to banking must have occurred even before Manu, the great Hindu Jurist, who laid down rules relating to rates of interest. During the Mughal period, the indigenous bankers played a very important role in lending money and. financing foreign trade and commerce.

The first bank in India, though elemental, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are Early Phase from 1786 to 1969 of commercial banks; Nationalisation of Commercial Banks upto 1991, prior to Indian banking sector reforms and New Phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

The General Bank of India was set-up in the year 1786. The East India Company established the Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, for mostly European shareholders. For the first time exclusively by Indians, Punjab National Bank Ltd was set-up in 1894 with Headquarters at Lahore. During the first phase, the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small.

To streamline the functioning and activities of commercial banks, the Government of India came up with the Banking Companies Act, 1949 which was later changed to Banking Regulation Act, 1949 as per amendment Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. RBI is the Central Bank of the country since 1935. It regulates and controls credit, issues licenses and functions as the banker of all banks and the government.

During those days, public had lesser confidence in banks. As an aftermath, the deposit mobilisation was slow. Instead of banks, the savings bank facility provided by the Postal department was considered comparatively safer. Moreover, funds were largely given to traders. Government took major steps in the Indian Banking Sector Reforms after Independence. In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale, especially in rural and semi-urban areas. It formed the State Bank of India, to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.

It was on the efforts of the then Prime Minister of India, Mrs Indira Gandhi that 14 major commercial banks in the country were nationalised in 1960’s. The second phase of nationalisation, with Indian Banking Sector Reforms, was carried out in 1980 with the nationalisation of seven more banks. This step brought 80% of the banking segment in India under government ownership. After the nationalisation of banks, the branches of the public sector banks in India rose to approximately 800% in deposits and advances took a huge jump by 11000%.

Banking in the support of government ownership, gave the public implicit faith and immense confidence about the sustainability of these institutions. The third phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set-up to suggest measures for banking sector reforms. Today, the country is flooded with foreign banks and their ATM stations. Efforts are being put in to give a satisfactory service to customers. Phone banking and net banking have been introduced. The entire system has become more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by external macroeconomics shock, unlike other East Asian Countries that had to suffer. This is largely due to flexible exchange rate regime, high foreign exchange reserves and reforms in the capital markets and banks. Presently, in India, the banking sector is segregated as public or private sector banks, cooperative banks and regional rural banks. Bouquet of services are available at the customer’s demand in today’s banking system. Different types of accounts and loans, have been facilitated with the advent of plastic money and money transfer across the globe. The last decade experienced a complete change in the financial and banking sector. The capital and financial markets, banking and non-banking institutions and financial instruments were redressed towards development.

Short Essay on Banking In India 350 Words in English

Below we have given a short essay on Banking In India is for Classes 1, 2, 3, 4, 5, and 6. This short essay on the topic is suitable for students of class 6 and below.

Industrial Development Bank of India (IDBI) is the tenth largest bank in the world in terms of development. With the advancement of technology, banking sector has become easier, faster, accurate and also timesaving. ATMs, Mobile Banking, SMS Banking and Net Banking are only the tips of an iceberg.

The enhanced role of the banking sector in the Indian economy, the increasing levels of deregulation along with the ascending levels of competition have facilitated globalisation of the Indian banking system and placed numerous demands on banks. Operating in this demanding environment has exposed them to various challenges. The last decade has witnessed major changes in the financial sector new banks, new financial institutions, new instruments, new windows, and new opportunities and along with all this, new challenges.

While deregulation has opened up new vistas for banks to augment revenues, it has entailed greater competition and consequently greater risks. Demand for new products, particularly derivatives, requires banks to diversify their product mix and also affect rapid changes in their processes and operations in order to remain competitive in the globalised environment.

Developing countries like India have a huge population. Banking must reach out to people even in the remote fragmented locations. Banks are also suffering from diminishing employee satisfaction. Losing out on potential and valuable customer base would be one of the consequences. Top level executives and human resource departments of various banks need to spend time and effort towards retention of their key employees. Banks have also come under the scanner recently, due to various scams and malpractices. The arrest of the Chairman of Syndicate Bank is the latest case in sight.

The banking sector also introduced the All-Women’s Bank, known as Bhartiya Mahila Bank, in New Delhi. It was inaugurated by the then PM Manmohan Singh on 19 th November, 2013, to commemorate the 94 th birthday of Indira Gandhi. India will be the third nation after Pakistan and Tanzaniya, to have a bank dedicated to women. The bank will offer concession on loan rates to women. It would also motivate people interested in entrepreneurship to locally train women in vocational skills. The other goal is to promote ownership of assets among women customers, as assets serve as a back-up in cases of domestic violence.

However, the present governor of RBI, Raghuram Rajan has assured that this case shouldn’t be extrapolated to the entire system. Banks shouldn’t be just money-lending institutions, they should be ‘banks with a conscience’.

Banking In India Essay Word Meanings for Simple Understanding

channel – a course into which something may be directed
Retail – the sale of goods to ultimate consumers, usually in small quantities
Indigenous – originating in and characteristic of a particular region or country
Segregated – to separate or set apart from others or from the main body or group
Distinct – different in nature or quality, dissimilar
Picture Dictionary
English Speech
English Slogans
English Letter Writing
English Essay Writing
English Textbook Answers
Types of Certificates
ICSE Solutions
Selina ICSE Solutions
ML Aggarwal Solutions
HSSLive Plus One
HSSLive Plus Two
Kerala SSLC
Distance Education

Essay On Bank

Table of Contents

Short Essay On Bank

A bank is a financial institution that provides various financial services to its customers, including accepting deposits, granting loans, and facilitating transactions. Banks play a critical role in the economy by enabling individuals, businesses, and governments to manage their finances, access credit, and transfer funds securely.

Banks typically make money by borrowing money from depositors at a lower interest rate and then lending it to borrowers at a higher interest rate. This difference in interest rates is known as the “spread” and represents the bank’s profit. In addition, banks often charge fees for other services such as overdraft protection, account maintenance, and wire transfers.

There are different types of banks, including commercial banks, investment banks, savings banks, and central banks. Commercial banks cater to the general public and small businesses and provide a wide range of financial products and services. Investment banks specialize in providing financial advice and underwriting services for large corporations and governments. Savings banks focus on accepting deposits and granting loans to individuals and families. The central bank, such as the Federal Reserve in the United States, is responsible for monetary policy and regulating other banks.

The use of technology has greatly impacted the banking industry, with many banks now offering online and mobile banking services, allowing customers to manage their finances from anywhere, at any time. Banks are also investing in artificial intelligence and machine learning technologies to improve their operations and customer experience.

In conclusion, banks play a crucial role in the financial system and the economy by facilitating transactions and providing access to credit. Technological advancements are transforming the banking industry, making it more convenient and efficient for customers. However, banks are also facing increasing regulatory scrutiny and competition from non-traditional financial institutions, which is leading to a shift in the way banks do business.

Long Essay On Bank

Banks are an integral part of our lives, and the services they provide us with are extremely valuable. In this article, we will explore how banks work, what services they offer, and how technology has changed the banking industry. We will also discuss the impact banks have on our economy and society as a whole. Get ready to dive into an interesting journey through the world of banking!

Introduction to Banking

Banking is an institution that provides financial services to its customers. There are many types of banks, such as commercial banks, investment banks, and central banks. Each type of bank has a different function in the economy.

Commercial banks are the most common type of bank. They accept deposits from customers and make loans to businesses and individuals. Investment banks help companies raise money by issuing new stocks and bonds. Central banks manage a country’s money supply and interest rates.

Banking is regulated by governments to protect consumers from fraud and to ensure the stability of the financial system. Banks must follow certain rules, such as holding a certain amount of money in reserve, in order to operate.

The history of banking can be traced back to ancient times. The first recorded bank was in Mesopotamia in circa 2000 BCE. Banking has evolved over the millennia, with the development of new financial products and services. Today, banking is an essential part of the global economy.

Types of Banks

There are three main types of banks in the United States: commercial banks, investment banks, and savings and loan associations. Each type of bank has a different focus and provides different services to its customers.

Commercial Banks: Commercial banks are the most common type of bank in the United States. They offer a wide range of services to their customers, including checking and savings accounts, loans, and credit cards. Commercial banks are regulated by the federal government.

Investment Banks: Investment banks are less common than commercial banks, but they play an important role in the economy. They provide financing for businesses and help companies raise capital by underwriting stocks and bonds. Investment banks are regulated by the Securities and Exchange Commission (SEC).

Savings and Loan Associations: Savings and loan associations (S&Ls) are financial institutions that specialize in home loans. S&Ls usually offer lower interest rates on home loans than commercial banks. They are regulated by the Federal Deposit Insurance Corporation (FDIC).

Functions of a Bank

A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most jurisdictions. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities.

Banks provide different types of services such as: -deposit taking -safekeeping -lending money -issuing credit – facilitating transactions -foreign exchange services

They also offer other value added services such as: -financial planning -investment advice -wealth management -insurance -asset protection -payment processing -trust services -brokerage services -cash management.

Advantages and Disadvantages of Banking

There are several advantages and disadvantages of banking that should be considered when making the decision to bank with a specific institution. Among the advantages of banking are convenience, safety, and earning interest on deposited funds. Some of the disadvantages of banking include fees, minimum balance requirements, and limited access to deposited funds.

When selecting a bank, it is important to weigh the pros and cons in order to make the best decision for your individual needs. If you value convenience, online banking may be the best option for you. On the other hand, if you are concerned about safety, then a brick-and-mortar bank with physical locations may be a better choice. It is also important to consider whether you are willing to pay fees in exchange for certain benefits, such as higher interest rates on savings accounts.

Ultimately, there is no right or wrong answer when it comes to choosing a bank. It is simply a matter of finding an institution that best meets your needs and preferences.

Regulations in the Banking Sector

In the United States, the banking sector is one of the most heavily regulated industries. Banks are subject to a variety of regulations at the federal, state, and local levels. These regulations are designed to protect consumers, ensure the stability of the financial system, and prevent fraud.

The most important federal regulator for banks is the Federal Reserve System. The Fed is responsible for setting monetary policy, supervising banks, and providing financial services to the government. Other important federal regulators include the Office of the Comptroller of the Currency (OCC), which regulates national banks; the Federal Deposit Insurance Corporation (FDIC), which insures deposits at banks; and the Consumer Financial Protection Bureau (CFPB), which protects consumers from unfair and deceptive practices by banks.

State regulators also play an important role in overseeing banks. Each state has its own banking department that is responsible for licensing and examining banks within that state. In addition, many states have their own deposit insurance programs that provide coverage for deposits above what is offered by the FDIC.

Finally, local governments also regulate banks through zoning laws and other ordinances. For example, a city may require that a certain percentage of a bank’s loans go to low-income borrowers or that a certain amount of money be invested in community development projects.

The Future of Banking

Though the role of banks has changed significantly over the past few centuries, they still play a vital role in the global economy. And while the future of banking may be uncertain, there are a few things we can be sure about.

For one, banks will continue to play a crucial role in facilitating trade and investment. They will also continue to provide financial services to individuals and businesses. However, we can expect that the way banks operate will change drastically in the coming years.

Technological advancements will have a major impact on banking. For example, we can expect that more and more transactions will be carried out online or through mobile devices. This shift away from traditional brick-and-mortar banking is likely to continue as technology makes it easier and more convenient for consumers to conduct their financial affairs remotely.

In addition, we can expect that banks will become increasingly specialized. As the world economy continues to grow and become more complex, banks will need to offer more targeted services to meet the needs of their clients. For instance, we may see the rise of private banks that cater exclusively to wealthy individuals or boutique firms that focus on specific industries or regions.

Finally, we can expect that regulation of the banking industry will change in the years ahead. In response to the global financial crisis of 2008, many countries introduced new laws and regulations designed to make the banking system safer and more stable. We can expect that these changes will continue in the future as policymakers strive to protect consumers and prevent future crises.

In conclusion, banks are a vital part of our economy and can help us achieve financial security. They provide a safe place to store our money and convenient services like online banking that make managing finances easier. Banks also offer loans, investments, insurance policies and other products that are essential for long-term financial planning. By understanding how banks work, we can take advantage of their many benefits and ensure an effective management of our finances.

Manisha Dubey Jha is a skilled educational content writer with 5 years of experience. Specializing in essays and paragraphs, she’s dedicated to crafting engaging and informative content that enriches learning experiences.

Essay on importance of yoga, essay on cow, climate change essay, essay on slaver, leave a comment cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Presentations made painless

Get Premium

107 Banking Essay Topic Ideas & Examples

Inside This Article

Banking is a fundamental aspect of the modern economy, serving as the backbone of financial systems worldwide. As a result, there is a vast array of topics to explore within the field of banking. Whether you are a student looking for inspiration or a banking professional seeking to expand your knowledge, this article presents 107 essay topic ideas and examples to help you get started.

The impact of digital banking on traditional banking services.
The role of central banks in regulating the economy.
The benefits and drawbacks of using mobile banking applications.
The future of cryptocurrencies and their impact on traditional banking systems.
The role of commercial banks in fostering economic growth.
The impact of interest rates on consumer borrowing behavior.
The ethical implications of banks investing in controversial industries.
The challenges faced by small and medium-sized banks in an era of consolidation.
The impact of globalization on the banking industry.
The role of banks in promoting financial inclusion.
The impact of technology on fraud prevention in banking.
The effectiveness of stress tests in assessing bank resilience.
The role of banks in financing infrastructure projects.
The impact of banking regulations on lending practices.
The benefits and challenges of open banking.
The role of banks in supporting entrepreneurship and innovation.
The impact of fintech startups on traditional banking institutions.
The role of banks in addressing income inequality.
The impact of banking crises on economic stability.
The future of branch banking in a digital world.
The role of banks in facilitating international trade.
The impact of artificial intelligence on banking operations.
The challenges and opportunities of sustainable banking practices.
The role of banks in promoting financial literacy.
The impact of bank mergers and acquisitions on customers.
The challenges of implementing anti-money laundering regulations in the banking sector.
The role of banks in supporting the United Nations Sustainable Development Goals.
The impact of financial technology on banking job opportunities.
The challenges of managing cybersecurity risks in the banking industry.
The role of banks in financing renewable energy projects.
The impact of demographic changes on banking services.
The challenges of implementing digital identity verification in banking.
The role of banks in facilitating financial intermediation.
The impact of economic sanctions on banking operations.
The challenges of implementing Basel III regulations in emerging markets.
The role of banks in supporting the growth of small and medium-sized enterprises.
The impact of consumer behavior on retail banking strategies.
The challenges of implementing real-time payments in the banking sector.
The role of banks in promoting financial stability.
The impact of banking regulations on the cost of credit.
The challenges of implementing sustainable finance practices in the banking industry.
The role of banks in supporting affordable housing initiatives.
The impact of banking innovations on financial inclusion in developing countries.
The challenges of implementing instant payments in cross-border transactions.
The role of banks in addressing climate change risks.
The impact of online banking on branch closures.
The challenges of implementing data protection regulations in the banking sector.
The role of banks in financing education and healthcare.
The impact of banking regulations on the profitability of small banks.
The challenges of implementing real-time fraud detection in banking.
The role of banks in promoting gender equality in access to finance.
The impact of customer trust on banking relationships.
The challenges of implementing blockchain technology in the banking industry.
The role of banks in supporting disaster recovery efforts.
The impact of banking regulations on cross-border capital flows.
The challenges of implementing biometric authentication in banking services.
The role of banks in supporting financial resilience.
The impact of banking innovations on customer loyalty.
The challenges of implementing sustainable supply chain finance in the banking sector.
The role of banks in promoting responsible lending practices.
The impact of banking regulations on financial innovation.
The challenges of implementing real-time liquidity management in banking.
The role of banks in supporting cultural and creative industries.
The impact of banking crises on bank lending behavior.
The challenges of implementing instant payments in the gig economy.
The role of banks in promoting social impact investing.
The impact of banking regulations on bank profitability.
The challenges of implementing artificial intelligence in customer service in banking.
The role of banks in supporting financial education in schools.
The impact of banking innovations on financial risk management.
The challenges of implementing sustainable procurement practices in the banking sector.
The role of banks in promoting responsible investment.
The impact of banking regulations on financial stability in emerging markets.
The challenges of implementing real-time customer onboarding in banking.
The role of banks in supporting cultural heritage preservation.
The impact of banking crises on bank lending to small businesses.
The challenges of implementing instant payments in government transactions.
The role of banks in supporting impact entrepreneurship.
The impact of banking regulations on cross-border banking activities.
The challenges of implementing artificial intelligence in credit risk assessment in banking.
The role of banks in promoting financial literacy among vulnerable populations.
The impact of banking innovations on financial crime prevention.
The challenges of implementing sustainable insurance products in the banking sector.
The role of banks in supporting sustainable agriculture and food security.
The impact of banking regulations on financial inclusion in rural areas.
The challenges of implementing real-time transaction monitoring in banking.
The role of banks in promoting responsible corporate governance.
The impact of banking crises on bank lending to households.
The challenges of implementing instant payments in the healthcare sector.
The role of banks in supporting social entrepreneurship.
The impact of banking regulations on cross-border payment systems.
The challenges of implementing artificial intelligence in anti-money laundering in banking.
The role of banks in promoting financial literacy among young people.
The impact of banking innovations on sustainable finance.
The challenges of implementing sustainable supply chain finance in global banking networks.
The role of banks in supporting renewable energy investments.
The impact of banking regulations on financial stability in post-conflict countries.
The challenges of implementing real-time fraud prevention in mobile banking.
The role of banks in promoting responsible investment in emerging markets.
The impact of banking crises on bank lending to the real estate sector.
The challenges of implementing instant payments in the education sector.
The role of banks in supporting social impact bonds.
The impact of banking regulations on cross-border remittances.
The challenges of implementing artificial intelligence in customer relationship management in banking.
The role of banks in promoting financial literacy among senior citizens.
The impact of banking innovations on sustainable development finance.
The challenges of implementing sustainable supply chain finance in the global fashion industry.

These essay topic ideas provide a comprehensive overview of the vast array of issues within the field of banking. Whether you choose to explore the impact of digital banking, the role of banks in promoting sustainability, or the challenges of implementing new technologies, there are countless avenues for research and analysis. By selecting a topic that piques your interest, you can delve deeper into the complexities of the banking industry and contribute to the ongoing development of this crucial sector.

Want to create a presentation now?

Instantly Create A Deck

Let PitchGrade do this for me

Hassle Free

We will create your text and designs for you. Sit back and relax while we do the work.

Explore More Content

YOUR FINAL GRADE - GUARANTEED UK Essay Experts

Disclaimer: This is an example of a student written essay. Click here for sample essays written by our professional writers.

View full disclaimer

Any information contained within this essay is intended for educational purposes only. It should not be treated as authoritative or accurate when considering investments or other financial products.

Role Of Banks Financial Institutions In Economic Growth Economics Essay

✅ Free Essay	✅ Economics
✅ 3583 words	✅ 1st Jan 2015

Reference this

If you need assistance with writing your essay, our professional essay writing service is here to help!

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

Cite This Work

To export a reference to this article please select a referencing stye below:

Related Services

Essay Writing Service

Dissertation Writing Service

Student reading and using laptop to study

Assignment Writing Service

DMCA / Removal Request

If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please:

Our academic writing and marking services can help you!

Find out more about our Essay Writing Service
Undergraduate 2:2
7 day delivery
Marking Service
Samples of our Service
Full Service Portfolio

Humanity University

Dedicated to your worth and value as a human being!

Related Lectures

Study for free with our range of university lectures!

Accounting Lectures
Business Lectures
Economics Lectures
Finance Lectures
All Available Lectures

Freelance Writing Jobs

Looking for a flexible role? Do you have a 2:1 degree or higher?

Study Resources

Free resources to assist you with your university studies!

Dissertation Resources at UKDiss.com
How to Write an Essay
Essay Buyers Guide
Referencing Tools
Essay Writing Guides
Masters Writing Guides

Change Region / Country

Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors.

United Kingdom

United States

United Arab Emirates

Saudi Arabia

Essay On Bank

Essay on Bank

500+ words essay on bank.

Banks are an integral part of the modern economy. They play a major role in the economic growth and development of a country. The idea of banking evolved with the idea of money. In India, public sector banks (PSBs) have been working to provide banking services in urban and rural areas since 1970. These public sector banks account for nearly 70% of banking activity in India. With the help of this essay on banks, students will get to know the functions performed by banks and their importance for individuals and the country. To help students in improving their essay-writing skills, we have also compiled a list of CBSE Essays on different topics. By practising these essays, they can boost their writing skills and also score good marks on the English exam.

Meaning of Bank

Banks are mainly linked to depositing and lending money. In Indian society, moneylenders used to give money to people in ancient times. They charged a high rate of interest to people as there were no banks or banking systems available at that time. But, with the change in time, the banking system was introduced in India. Now, we have public sector banks and private banks.

A bank is a financial institution that deals with deposits, withdrawals and other related banking services. Bank receives money from those who want to save in the form of deposits, and it lends money to those who need it. A bank is a financial institution that works as an intermediary to accept deposits and channels those deposits into various lending activities. It does so through loans or capital markets. A bank establishes the connection between the customers who have capital surpluses and those with capital deficits. In India, all banks operate under the guidelines of the Reserve Bank of India, which is known as the banker’s bank.

Functions of Bank

Banking is the lifeline of the modern economy. It has played a very important role in the economic development of all the nations of the world. We can not think of modern commerce without banking. Banking is a business which seeks profits like any other business. The banking business mainly constitutes borrowing and lending as their basic functions. Now, banks are providing many other services to people, such as net banking, online shopping, mobile banking, granting loans and advances, short-term credit, pension payments, acting as a dealer in foreign currency etc. A common person can safely deposit their money in the banks.

How Important are Banks for Development?

Banks are the most important financial pillars. They play a vital role in the economic development of a country. The financing requirements of industries, trades, agriculture and other business are met with the help of banks. Therefore, if the banking system of a country becomes strong, then the development of the country will also be at a faster rate. In today’s economy, banks are not only dealing with money, but they are also contributing to the development of the nation. They play a crucial role in the disbursement of credit and the mobilisation of deposits to various sectors of the economy. Banks also represent the economic health of the country. The strength of a nation’s economy depends on the strength of the financial system, which depends on the banking system.

In India, banks play a crucial role in the social and economic growth of the country after independence. The banking sector in India accounts for more than half the assets of the financial sector. The Indian banks have shown much growth after the implementation of financial sector reforms.

Banks are the backbone of any country’s economy. They are responsible for running the economy and controlling the price of the markets. They perform various important functions. However, there are default NPAs, cases of corruption and security threat-related issues, but these can be resolved by implementing strict laws and rules by the government.

Students must have found the “Essay on Bank” useful for improving their essay writing skills. They can get the study material and the latest updates on CBSE/ICSE/State Board/Competitive Exams, at BYJU’S.

CBSE Related Links

Register with BYJU'S & Download Free PDFs

You are using an outdated browser. Upgrade your browser today or install Google Chrome Frame to better experience this site.

IMF at a Glance
Surveillance
Capacity Development
IMF Factsheets List
IMF Members
IMF Financial Statements
IMF Senior Officials
IMF in History
Archives of the IMF
Job Opportunities
Climate Change
Fiscal Policies
Income Inequality

Flagship Publications

Other publications.

World Economic Outlook
Global Financial Stability Report
Fiscal Monitor
External Sector Report
Staff Discussion Notes
Working Papers
IMF Research Perspectives
Economic Review
Global Housing Watch
Commodity Prices
Commodities Data Portal
IMF Researchers
Annual Research Conference
Other IMF Events

IMF reports and publications by country

Regional offices.

IMF Resident Representative Offices
IMF Regional Reports
IMF and Europe
IMF Members' Quotas and Voting Power, and Board of Governors
IMF Regional Office for Asia and the Pacific
IMF Capacity Development Office in Thailand (CDOT)
IMF Regional Office in Central America, Panama, and the Dominican Republic
Eastern Caribbean Currency Union (ECCU)
IMF Europe Office in Paris and Brussels
IMF Office in the Pacific Islands
How We Work
IMF Training
Digital Training Catalog
Online Learning
Our Partners
Country Stories
Technical Assistance Reports
High-Level Summary Technical Assistance Reports
Strategy and Policies

For Journalists

Country Focus
Chart of the Week
Communiqués
Mission Concluding Statements
Press Releases
Statements at Donor Meetings
Transcripts
Views & Commentaries
Article IV Consultations
Financial Sector Assessment Program (FSAP)
Seminars, Conferences, & Other Events
E-mail Notification

Press Center

The IMF Press Center is a password-protected site for working journalists.

Login or Register
Information of interest
About the IMF
Conferences
Press briefings
Special Features
Middle East and Central Asia
Economic Outlook
Annual and spring meetings
Most Recent
Most Popular
IMF Finances
Additional Data Sources
World Economic Outlook Databases
Climate Change Indicators Dashboard
IMF eLibrary-Data
International Financial Statistics
G20 Data Gaps Initiative
Public Sector Debt Statistics Online Centralized Database
Currency Composition of Official Foreign Exchange Reserves
Financial Access Survey
Government Finance Statistics
Publications Advanced Search
IMF eLibrary
IMF Bookstore
Publications Newsletter
Essential Reading Guides
Regional Economic Reports
Country Reports
Departmental Papers
Policy Papers
Selected Issues Papers
All Staff Notes Series
Analytical Notes
Fintech Notes
How-To Notes
Staff Climate Notes

Finance & Development Magazine

Banks: At the Heart of the Matter

Jeanne Gobat

Back to Basics

Credit: ISTOCK / RASTUDIO

BACK TO BASICS COMPILATION

Institutions that match up savers and borrowers help ensure that economies function smoothly

YOU’VE got $1,000 you don’t need for, say, a year and want to earn income from the money until then. Or you want to buy a house and need to borrow $100,000 and pay it back over 30 years.

It would be difficult, if not impossible, for someone acting alone to find either a potential borrower who needs exactly $1,000 for a year or a lender who can spare $100,000 for 30.

That’s where banks come in.

Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money). The amount banks pay for deposits and the income they receive on their loans are both called interest.

Depositors can be individuals and households, financial and nonfinancial firms, or national and local governments. Borrowers are, well, the same. Deposits can be available on demand (a checking account, for example) or with some restrictions (such as savings and time deposits).

Making loans

While at any given moment some depositors need their money, most do not. That enables banks to use shorter-term deposits to make longer-term loans. The process involves maturity transformation —converting short-term liabilities (deposits) to long-term assets (loans). Banks pay depositors less than they receive from borrowers, and that difference accounts for the bulk of banks’ income in most countries.

Banks can complement traditional deposits as a source of funding by directly borrowing in the money and capital markets. They can issue securities such as commercial paper or bonds; or they can temporarily lend securities they already own to other institutions for cash—a transaction often called a repurchase agreement (repo). Banks can also package the loans they have on their books into a security and sell this to the market (a process called liquidity transformation and securitization ) to obtain funds they can relend.

A bank’s most important role may be matching up creditors and borrowers, but banks are also essential to the domestic and international payments system —and they create money .

Not only do individuals, businesses, and governments need somewhere to deposit and borrow money, they need to move funds around—for example, from buyers to sellers or employers to employees or taxpayers to governments. Here too banks play a central role. They process payments, from the tiniest of personal checks to large-value electronic payments between banks. The payments system is a complex network of local, national, and international banks and often involves government central banks and private clearing facilities that match up what banks owe each other. In many cases payments are processed nearly instantaneously. The payments system also includes credit and debit cards. A well-operating payments system is a prerequisite for an efficiently performing economy, and breakdowns in the payments system are likely to disrupt trade—and, therefore, economic growth—significantly.

Creating money

Banks also create money. They do this because they must hold on reserve, and not lend out, some portion of their deposits—either in cash or in securities that can be quickly converted to cash. The amount of those reserves depends both on the bank’s assessment of its depositors’ need for cash and on the requirements of bank regulators, typically the central bank—a government institution that is at the center of a country’s monetary and banking system. Banks keep those required reserves on deposit with central banks, such as the U.S. Federal Reserve, the Bank of Japan, and the European Central Bank. Banks create money when they lend the rest of the money depositors give them. This money can be used to purchase goods and services and can find its way back into the banking system as a deposit in another bank, which then can lend a fraction of it. The process of relending can repeat itself a number of times in a phenomenon called the multiplier effect. The size of the multiplier—the amount of money created from an initial deposit—depends on the amount of money banks must keep on reserve.

Banks also lend and recycle excess money within the financial system and create, distribute, and trade securities.

Banks have several ways of making money besides pocketing the difference (or spread) between the interest they pay on deposits and borrowed money and the interest they collect from borrowers or securities they hold. They can earn money from:

income from securities they trade; and
fees for customer services , such as checking accounts, financial and investment banking, loan servicing, and the origination, distribution, and sale of other financial products, such as insurance and mutual funds.

Banks earn on average between 1 and 2 percent of their assets (loans and securities). This is commonly referred to as a bank’s return on assets.

Transmitting monetary policy

Banks also play a central role in the transmission of monetary policy , one of the government’s most important tools for achieving economic growth without inflation. The central bank controls the money supply at the national level, while banks facilitate the flow of money in the markets within which they operate. At the national level, central banks can shrink or expand the money supply by raising or lowering banks’ reserve requirements and by buying and selling securities on the open market with banks as key counterparties in the transactions. Banks can shrink the money supply by putting away more deposits as reserves at the central bank or by increasing their holdings of other forms of liquid assets—those that can be easily converted to cash with little impact on their price. A sharp increase in bank reserves or liquid assets—for any reason—can lead to a “credit crunch” by reducing the amount of money banks have to lend, which can lead to higher borrowing costs as customers pay more for scarcer bank funds. A credit crunch can hurt economic growth.

Banks can fail, just like other firms. But their failure can have broader ramifications—hurting customers, other banks, the community, and the market as a whole. Customer deposits can be frozen, loan relationships can break down, and lines of credit that businesses draw on to make payrolls or pay suppliers may not be renewed. In addition, one bank failure can lead to other bank failures.

Banks’ vulnerabilities arise primarily from three sources:

a high proportion of short-term funding such as checking accounts and repos to total deposits. Most deposits are used to finance longer-term loans, which are hard to convert into cash quickly;
a low ratio of cash to assets; and
a low ratio of capital (assets minus liabilities) to assets.

Depositors and other creditors can demand payment on checking accounts and repos almost immediately. When a bank is perceived—rightly or wrongly—to have problems, customers, fearing that they could lose their deposits, may withdraw their funds so fast that the small portion of liquid assets a bank holds becomes quickly exhausted. During such a “run on deposits” a bank may have to sell other longer-term and less liquid assets, often at a loss, to meet the withdrawal demands. If losses are sufficiently large, they may exceed the capital a bank maintains and drive it into insolvency.

Essentially, banking is about confidence or trust—the belief that the bank has the money to honor its obligations. Any crack in that confidence can trigger a run and potentially a bank failure, even bringing down solvent institutions. Many countries insure deposits in case of bank failure, and the recent crisis showed that banks’ greater use of market sources of funding has made them more vulnerable to runs driven by investor sentiment than to depositor runs.

The need for regulation

Bank safety and soundness are a major public policy concern, and government policies have been designed to limit bank failures and the panic they can ignite. In most countries, banks need a charter to carry out banking activities and to be eligible for government backstop facilities—such as emergency loans from the central bank and explicit guarantees to insure bank deposits up to a certain amount. Banks are regulated by the laws of their home country and are typically subject to regular supervision. If banks are active abroad, they may also be regulated by the host country. Regulators have broad powers to intervene in troubled banks to minimize disruptions.

Regulations are generally designed to limit banks’ exposures to credit, market, and liquidity risks and to overall solvency risk. Banks are now required to hold more and higher-quality equity—for example, in the form of retained earnings and paid-in capital—to buffer losses than they were before the financial crisis. Large global banks must hold even more capital to account for the potential impact of their failure on the stability of the global financial system (also known as systemic risk ). Regulations also stipulate minimum levels of liquid assets for banks and prescribe stable, longer-term funding sources.

Regulators are reviewing the growing importance of institutions that provide bank-like functions but that are not regulated in the same fashion as banks—so-called shadow banks—and looking at options for regulating them. The recent financial crisis exposed the systemic importance of these institutions, which include finance companies, investment banks, and money market mutual funds.

Jeanne Gobat is a Senior Economist in the IMF’s Monetary and Capital Markets Department.

Opinions expressed in articles and other materials are those of the authors; they do not necessarily reflect IMF policy.

A Central Banker’s View on Capital Flows
Shaktikanta Das on the New Frontier for Central Banks
Jookyung Ree on the eNaira, One Year After
Embrace Debate
François Villeroy de Galhau on the Ethics of Currency
Chasing Stability
F&D HOMEPAGE

Latest Issues

December 2023

September 2023

About F&D Magazine

Social Media

F&D on Facebook
F&D on LinkedIn

F&D STAFF

Gita Bhatt, Editor-In-Chief
Maureen Burke, Managing Editor
Peter J. Walker, Senior Editor
Jeff Kearns, Senior Editor
Nicholas Owen, Senior Editor
Smita Aggarwal, Assistant Editor
Andrew Stanley, Assistant Editor
Bruce Edwards, Multimedia Content
Noha Elbadawy, Multimedia content
Melinda Weir, Production Manager
Rekia Ennaboulssi, Web Manager
Marta Doroszczyk, Digital Marketing
Kwabena Akuamoah-Boateng, Social Media Editor

350 Banking Essay Topic Ideas & Examples

🏆 best banking topic ideas & essay examples, 👍 good essay topics on banking, 🥇 interesting topics to write about banking, 📝 simple & easy banking essay titles, 💡 most interesting banking topics to write about, 📑 good research topics about banking, ❓ money and banking essay questions.

The Banking Concept of Education by Paulo Freire This is one of the details that should be taken into account by the readers. This is one of the pitfalls that should be avoided.
Traditional Versus Modern Banking Essay Traditional banking is characterized by the application of strict regulations, while modern banking is differentiated by the introduction of new laws that resulted in the deregulation of key aspects of the banking industry.
The 2008 Banking Crisis in the Documentary “Inside Job” Using the documentary “Inside Job”, the paper presented below asserts that the malpractices of different banking experts, the ethical dilemma revolving around ratings agencies’ actions, and the Gramm-Leach-Bliley and the Glass-Steagall Acts influenced the nature […]
The Concept of Usul Fiqh and Qawaid Fiqhiyyah: Shariah and Islamic Banking For such convictions, this essay explores the concept of Usul Fiqh and Qawaid Fiqhiyyah in respect to issues regarding the influence of Shariah on Islamic banking practices Under the Islamic community, Fiqh is a terminology […]
Internet Banking Effects and Results Internet banking has certainly played a key role in the increase and ease of banking services the world over and the reasons for this are not difficult to discern.
JPMorgan Chase Bank: Ratio Analysis The ratios are debt-to-equity, the interest coverage ratio, the equity ratio, and the debt-to-asset ratio. For the years 2017, 2018, 2019, and 2020, JPM had a fixed turnover ratio of 7.
The Banking Model of Education In the banking concept of education, the teacher is considered to be knowledgeable and experienced in contrast to the students who are supposed to be “blank slates,” or, in other words, entirely ignorant of the […]
Lloyds Banking Group’s Situational Analysis These products the company has diversified in various products and markets in an attempt to grow and increase its share in the market.
Role of Central Bank If central bank offers credit to the banks at a higher rate, then the rate of interest that commercial banks will offer loans to the public will be high; this reduces the attractiveness of the […]
Wellfleet Bank: Case Study Under Group Risk Committee, the company further delegates duties to: reputational, country, operational, group credit, market risk, business risk, and business risk committees.
Wells Fargo Banking Scandal: Ethical Analysis The structure and the business model of Wells Fargo allowed the emergence of the working environment that incited the employees to unethical behaviors.
Citibank’s E-Business Strategy and Competences Citibank has incorporated the use of e-business in its operation so that it can meet the needs of its customers and to withstand the market pressures which have been changing drastically.this paper has established the […]
IMF and World Bank: A Boon or a Bane for Developing Nations? The amount of interest and other overheads charged on the loans given to the nations in need is simply off the scale.
The Lebanese-Canadian Bank’s Money Laundering The bank was later banned from using the dollar by the American treasury; this resulted in the collapse and eventual sale of the bank.L.C.B.had to pay a settlement fine of one hundred and two million […]
Barclays Bank Description Introduction Barclays bank is a UK-based Multinational Corporation headquartered in London and operates in the financial niche. The universal bank was established in 1860 in London as a goldsmith’s lending business offering people loans and saving options. The bank’s resilience in the corporate domain made it navigate all the challenges, and it still operates to […]
Money and Banking: General Information The essay gives the definition of money and gives a brief description of the functions of money. As a store of value, money can be saved reliably and then retrieved in the future.
Commercial Bank of Australia Ltd vs. Amadio The decision by the court held that the bank manager and the commercial bank were aware of the special disadvantage of the Amadios and made no substantive efforts to ensure that Amadio clearly understood the […]
Personal and Organizational Development in Banking My career plan is as in the figure below: – My career goal is to find a job in a bank and gradually grow through the ranks as I gain financial management related skills and […]
Case of Westpac Bank & St. George Bank Merger The merger of the Westpac bank that is the member of the “Big Four” in Australia and the simple regional bank St.
Time Value of Money: Choosing Bank for Deposit The value of the money is determined by the rate of return that the bank will offer. The future value of the two banks is $20,000 and $22,000 for bank A and bank B respectively.
The Banking Concept of Education In the paper, I agree that knowledge gained through experience and active interaction is the most ideal form of knowledge as opposed to the “banking system” in which students are mere receivers and the teacher […]
Islamic Banking The involvement of institutions and government led to the application of theory to practice and resulted in the establishment of the Islamic banks”.
Tesla Inc.’s Banking Structure and Investments According to Saberi, it represents almost 4% of the world GDP, and, in the context of developed economies, 1% of automotive industry growth triggers respective 1,5% growth in the country’s GDP. Due to the specificity […]
The Mountain Bank’s Strategy Analysis The most suitable competitive business strategy, in the case of the Mountain Bank is to build the presence in the market of consumer lending and corporate banking.
Bank of America’s Business Model Elements The organizational structure leverages Bank of America in the following ways. Bank of America has categorized its throughputs into five categories, which are the core products, processes, and services offered.
Factors Which Impact Barclays Bank Political factors refer to the government policies that affect businesses and the extent to which the government intervenes in the economy.
The Pros and Cons of Investment Banking The investment banks are also referred to as proprietors since they are involved in trading of marketable instruments using their own money as opposed to that of investors.
Competitive Advantage Source: Westpac Banking Corporation The competence of the company is the result of learning and searching for better solutions in this or that situation either in domestic affairs or in the market.
Banking Systems Success in Canada and Australia The first reason for this stability is that banks in Canada are more robust and strong in comparison to those, which are in the United States of America.
Mobile Banking Adoption: Challenges and Solutions Therefore, the writer wishes to investigate the numerous impacts of mobile banking because the burgeoning phenomenon may entirely replace traditional banking in the near future, specifically in the UK.
The Implications of Internet-Banking on Bank Profitability Centeno notes that “through the analysis of the Acceding and Candidate Countries, by adopting internet-banking, it demonstrates that lack of PC and penetration of internet services is an obstruction to the advancement of internet banking […]
Online Banking and Online Purchases The ethical implications of online banking and online shopping include the privacy of consumer information, the reliability of the transactions, and security.
A Report on Customer Driven Marketing Strategy for Easy-Pay Mobile Banking Service The company seeks to reach 2 million clients in the next two years with a possibility of gaining a comparative advantage against potential competitors due to the fact that it is has the first mover […]
Leadership at Qatar National Bank This paper examines in detail the phenomenon of leadership and its classic types in the light of improving the overall effectiveness of the work team.
The Bank of America Corporation: Planning & Organizational Analysis The Bank may use environmental adaptation planning activities to enhance external relations with stakeholders such as customers, governments, suppliers and the public.
Islamic Banking Sector Issues The key aspects of the Islamic banks in the region are the profit and loss sharing, transparent dealing, lack of interest, lack of speculation and no gambling.
Ethics in the Banking Industry in the UK It may be argued that organizations may require ethics as the part of their practices in the industry, but it may not be the essential or core part in any institution, specifically in the organizations […]
The Wall Street Crash Impact on the World’s Banking System The Wall Street Crash of 1929 was one of the most impactful events in the financial history of the United States that also influenced the flow of the global banking operations.
Corporate Governance Statements: BHP Billiton and National Australia Bank This is to say that corporate governance requirements differ from company to company and from a broader perspective, the success or failure of a given company differs with the corporate governance statement of the company.
Safaricom’s Mobile Banking When Safaricom launched M-PESA, it commissioned agents in different parts of the country; the agent’s work was primarily to receive deposits from customers and electronically transfer this to the client’s M-PESA account.
The Employee Benefits Provided by the Bank of America In the process of applying for a job or assessing a certain company, it is crucial to learn about their advantages and unique features. In conclusion, Bank of America features various benefits that provide employees […]
Legal Issues in the Banking Industry The second problem is the complexity of banking operations for foreigners and the low-educated segments of the population. Thus, in banking, employees often face the problems of sexual harassment, complex mechanisms for clients, and digitalization.
Cryptocurrency and Its Impact on the Banking Industry Advanced coding is used to store and transfer cryptocurrency data between the wallet and a public ledger, and encryption is used to confirm transactions.
Overfitting and Bias-Variance Trade-Off in Banking While the training set represents most of the data, the testing set is used to test accuracy by measuring performance separately in the two separate parts of the data set.
Impact of Cyber Crime on Internet Banking The paper evaluates a con article on ‘The impact of cybercrime on e-banking’ [1]. H2: Identity theft will have a negative impact on the adoption of electronic banking.
Digital Trends & Sustainability in Banking It would be accurate to refer to banking as the financial hub of the economy because it is a major industry in the service sector.
The National Bank of Kuwait’s Improvement However, the constant improvement of technology and the introduction of innovations forced the bank to reconsider its policy and introduce a new system.
Ransomware in the US Banking Industry The mismatch can lead to a lack of trust and reputational damages. Data pertaining to the business plans and visions can also be accessed, making it vulnerable.
Interpersonal Leadership Skills in Bank of America However, it is clear that the issue is not the demographics but the inefficient leadership in the company and the lack of interpersonal skills that would make people want to work at Bank of America.
Big Data Analytics in Central Banking In addition, the rate is integral to the overall cost of living, which parameter is in a cause-and-effect relationship with inflation.
Workplace Inclusivity at International Bank of Commerce Even if employees of color do not ascribe significance to the unequal distribution of power in the bank, the lack of diversity is evident.
Abu Dhabi Commercial Bank PJSC The discussion takes a general overview of the company, its mission and vision statements, strategic goals, and key objectives. The key objectives Abu Dhabi Commercial Bank wants to realize include: Growing transaction volumes and assets […]
Banking System: The Brief Analysis This is a fictional story that comes perilously near to the reality about the basic foundations of modern society. The primary objective of this story is to demonstrate reality’s simple math and the existing banking […]
Bank Pekao S. A.: Performance and Strategy Compared to its peers in Poland, Bank Pekao is uniquely placed as it launched a brokerage house and made practical biometrics technology in the banking industry, contributing heavily to the bank’s assets quality and investment […]
Financial Analysis of Al Ahli Bank of Kuwait Al Ahli Bank of Kuwait’s main competitors include Commercial Bank of Kuwait SAK, Gulf Bank KSCP, Burgan Bank SAK, and the National Bank of Kuwait.
Banking Sector of the United Kingdom At the same time, the banking sector of the United Kingdom had to balance between its financial losses and the ability to provide loans and debt-moratoria in order to support the country’s financial stability. In […]
Case Study of Hong Kong Shanghai Banking Capital From HSBC’s perspective, money laundering represents one of the most significant internal risks due to the worldwide presence, especially in certain economic areas with facilitated financial regulation and considerable economic influence, such as Hong Kong […]
Risk Factors Affecting Bank Nordik’s Operations and Risk Management Control measures adopted by the firm to manage these risk categories are explored in this investigation and the findings used as a justification for the development of a robust risk management plan.
The Albilad Capital Bank’s Mission and Vision Since the bank is striving to renew its mission and vision from the start, it is crucial to identify the values and vectors of direction.
National Australia Bank’s Sustainability Challenges One of the reasons for the success of NAB is the overall strategy of the company, which focuses its capital management on adequacy, efficiency, and flexibility, maintaining the economic balance to support and strengthen the […]
Aspects of Electronic Banking The significance of our study is in the critical issues of e-banking and the areas of improvement that the banks can eliminate or improve to boost customer satisfaction.
Alonzo vs. Chase Manhattan Bank, NA Case Study However, the author provides an insight into the matter by claiming that the policy concerning workplace discrimination took a dramatic turn in the early 1960s upon adoption of the Title VII of the Civil Rights […]
Political Theories and the World Bank Known as ‘power politics’ or means to exercise power World Bank massive financial institution which poorer nations depend on for subsidies Manner of soft power of the richer states contributing to the World Bank […]
Misconduct in Banking, Superannuation and Financial Services The company was included in the Royal Commission report due to ASL and NM releasing the trustee duties of their funds because of the AMP Group membership.
Sexual Harassment in Meritor Savings Bank vs. Vinson Case Mechelle Vinson, a defendant and a former employee of the plaintiff bank, filed a lawsuit against the bank and its bank manager Sidney Taylor. Sidney Taylor was the vice president of the bank and the […]
Considerations in Investment Banking However, to ensure a fruitful outcome, the CFO should choose a qualified and experienced investment banker to represent the facility. Secondly, the selected investment banking firm is expected to act as both a matchmaker and […]
The Impact of Bank on the Cost of Financial Intermediation Also, since the two variables are not controlled; bank concentration and national institutions, the research argues, however, that the measures of concentration capture the efficient structure theory and market power theories.
Bank’s Provided Opportunities to Attract Consumers The offers are the following, to choose the credit card which backs cash when the consumer makes an online purchase, the other option is take the credit card which backs cash when the consumer makes […]
Hongkong and Shanghai Banking Corporation: Approach to Operating in China According to Luthan and Doh, centralization played a significant role in HSBC’s success in the new market. It was also the first company to establish a locally incorporated entity in Taiwan and Vietnam.
Grameen Bank’s Socially Responsible Innovation The bank targets the poor and marginalized with both financial assistance and information to help them grow. The Grameen Bank has continued to register impeccable performance on the social, economic, and environmental dimensions.
A Problem in Implementation of CSR in the U.S. Banking Industry Corporate social responsibility is essential in this age of intense globalization and competition – essential for firms to survive in the competition and also important for firms.
Digitalization of E-Commerce in Bank of Ireland The interview with the Senior Director in the Property Finance division of Corporate Banking, Michael Murray, revealed the importance of the advance of digitalization for the Bank of Ireland. These and other technologies will enable […]
The 1920 Farrow’s Bank Failure and Its Causes In this context, the company would be resilient to any stresses, and the outcome of the situation may be the opposite.
Banking: Financial Transaction Risks In that case, even the losses-free termination of the transaction would be a failure since the goal of acquisition would remain unachieved.
Bahrain Development Bank: Analysis To identify and develop ways of assessing learning at the working station to facilitate the employees’ skills and competencies. To identify ways of integrating training capability and focus on the organizational processes through skills acquisition […]
ICBC Bank – China: Overview The shifted focus of ICBC’s policy became the major contributor to the growth of the company on the international market and the subsequent cultural changes.
Customers’ Perceptions of M-Banking To find answers pertaining to the major objectives of the study, the gathered data was analysed using SPSS v.23. An exploratory factor analysis was run to group the existing variables into factors, and also to […]
“Attitudes Towards Mobile Banking” Article by Sohail & Al-Jabri In the introduction of the article, much background information, an overall evaluation of the situation in the banking industry, and the purposes of the study are discussed.
The Bank of Toroda: A Stakeholder Approach “Stakeholders are persons, organizations and groups that have to be considered by managers, directors as well as front office workers.”
Corporate Bias in the World Bank Group’s International Centre The institution judges the Pan Rim case neglecting the El Salvador government’s views, local communities, and the Catholic Church. It does not prioritize the protection of the environment and human rights.
Alinma Bank Industry Analysis. Case Study The demand for the services is another essential factor that shows the industry is profitable. The presence of many investors in the country shows that the demand for financial services is high.
Impact of Online Banking on Dubai International Bank DIB has developed t-banking (telephone banking), e-banking (electronic banking) and m-banking (mobile banking) from this trend.
Phishing Victimization on Internet Banking Awareness Therefore, the study is meant to determine and evaluate consumer susceptibility to e-banking victimization through phishing attacks. Subsequently, the study will be designed to evaluate the effectiveness of phishing victimization training to E-banking consumers.
ICT: E-Banking and Firm Performance ICT is concerned with storage, retrieval, manipulation and transmission of digital data. ICT involves software, hardware and systems.
P&G & Royal Bank of Canada’s Securities Valuation The discussion in the paper focuses on the Two-Fund Separation theorem. The discussion also reveals that the asset allocation problem focuses on the allocation of resources between two risky assets.
Governance Failures in Australian Banking Sector Firstly, executive compensation in the Australian banks was not tied to performance outcomes, and, secondly, the major problem in the CEOs’ conduct was related to the field of ethics.
Hongkong and Shanghai Banking Corp and Wells Fargo Speaking of the Income Statement, Wells Fargo wisely divides it into interest income and expense and non-interest income and expense, and this aspect eases the overall calculations of financial ratios.
Analysis of Al Hilal Bank Launch At the time when Al Hilal was launched, the situation in the world financial system was not favorable. It can be concluded that the banking market at the UAE was not favorable at the time […]
Noor Bank’s Balance Sheet and Income Statement The bank’s operating income from Islamic banking and sukuk amounted to more than 895 million AED compared to 678 million AED in the previous year.
Banking Institution and Transaction Regulations In the case of Brittany, it is the duty of the bank to authenticate all transactions on her account. In the process of negotiation, most parties often focus on the substance of the deal and […]
Bank of America’s Strengths and Weaknesses Interestingly, even non-banking institutions such as Quicken Loans and Leader Bank have started to claim a share of the market held by Bank of America. The root cause of the Bank’s mortgage troubles emanated from […]
Bank of America’s External Analysis in 2013 Among the major lenders in Massachusetts, for instance, Bank of America was the only bank that recorded a notable decline in the volumes of purchase and refinancing loans relative to other years. Apparently, competition has […]
Sales Portfolio: A Bank Mortgage and Marketers Although a mortgage has several advantages to both the commercial institution and the customer, it has its share of disadvantages. Many clients are reluctant to take up a mortgage because of the high interest rates.
Banking With WikiLeaks If Wiki Leaks has the right to be served by a financial institution, the company must ensure that it does not harm the operations of the institution.
The Essence of the Islamic Banking System Riba of the Quran is called Riba An-Nasiyah and riba of the of Sunnah is called Riba Al Fadl. In the context of Islamic banking system, gharar is excessive uncertainty.
Factors Effecting Bank – Borrower Relationship in UAE The Middle East region’s banking industry is one of the fastest growing in the world. It is projected that the industry will get even better in the future due to the nature of the business […]
Bank of China Limited: Overview That said the objective of my effort is to present a report on the Bank of China’s IPO of 2006. This listing was exceptional since it was the only bank of China that had managed […]
Banking Industry: Successes and Failures These banks are regulated by the federal government and are required to be members of the Federal Reserve. However, these banks are not compelled to be members of the Federal Reserve.
Mortgages Offered by the RBC Royal Bank From your profile and to the best of my knowledge, I take pride to inform you that we have five financial investment products that best suit you.
Banking and Financial Markets: Asset-Backed-Securities Thus, there are four notable main stages in the process of creating the asset-backed securities and these include: Segregation of assets from originator or seller Creation of a specialized functional vehicle to seize the asset […]
Analyzing and Managing Systematic Risks in Banking Risk assessment is done to ascertain the nature of task before deciding the strategy of responding to it. Analysis and management of risks requires one to identify the nature of the risk involved.
Islamic Banking in Dubai and the UAE In an Islamic environment, the approach to financial operations such as the law of contracts, nature of property, interest rates and business transactions is quite different from the rest of the world.
Deutsch Bank Analysis and Performance Forecast The big bonus for banks came in the form of the Securitization Bill, which gave banks and institutions opportunity to recover from bad debts.
International Banking: New Basel The combination of the four changes in 2004 intended to speed up off-balance sheet mortgage securitization as the main avenue to drive the revenue together with the share price of banks.
Barclays Bank: Management Accounting Report This team assists the management in the gathering of information that is unilaterally used in management accounting to address specific challenges in the bank.
BNP Paribas International Banking Networks In the United States, the bank has a strong presence in the western part of the country, whereas, in Asia, it has fixed a secure and fast-growing business.
Riyadh Bank: The Historical Financial Analysis By the end of the third quarter of the year 2011, the organization has recorded a 15% increase in its net profit.
Budgeting of HSBC Bank UAE Branch Looking at their financial statements one will note that they are quite detailed with lots of financial items, which are specific to the bank, and understanding them requires referral to the notes accompanying the financial […]
Westpac Banking Corporation Analysis and Forecast The entry of foreign banks as well as the building societies which were speedily developing into banks and the emergence of other financial institutions increased competition in the Australian financial market.
The Analysis of Banorte Bank in Mexico The scrutiny of the bank’s fundamentals and variables of the bank form part of the report. Financial analysis and forecast of the bank’s financial performance is the major objective of the report.
Case on Private Equity in Saudi American Bank The problem was that the firm’s investment manager was investing for the first time and therefore, he had many questions to ask before he finally made the decision to invest in the company.
Commercial Banks and the Northern Rock Crisis Bank Roles Prior to the actual analysis of the case of the Northern Rock bank is a brief background that elaborates the scenario of the Northern Rock Bank Crisis.
Bank (HSBC) and Life Insurance Company (Protective) The report also investigates the profitability of the two companies, the metrics used to measure profitability, variation in the last five years and the reasons for these variations.
Investment Banking and Operations Management In a steady market, the bank uses the information conveyed in prices of assets to significantly allocate capital resource to the most profitable and ultimate use.
Investment Banking and Global Operations Management Essentially, banks engage in securitization process to increase their uncertain profit opportunities and also to adjust their asset portfolio Entering into the security markets through the perspective of the original financial institution is of great […]
Online Banking and Cryptographic Issues A disadvantage of online banking is that it inherently reduces the interaction between banks and their customers and in addition, security is not guaranteed in this type of banking, that is, hackers have a chance […]
The Failure of Superior Bank The crisis in Superior Bank was associated with the fact that the directors failed to observe and address risky financial management strategies that were followed in the organization, and the regulators did not pay much […]
Criminal Law & Bankruptcy: Bullard vs. Blue Hills Bank The action by the court caused Bullard to appeal against the decision to the BAP to which the BAP concluded that the denial was not the final.
First Citizens Bank’s Financial Income in North Carolina The income analysis pertains to a comparison of the profit, revenue, income and profit of the institution in the recent year for analysis on the position of the company.
Financial Risk Management in Islamic Banking Ahmed defined Islamic financial as a system of finance based on principles of Islamic banking, and that operates under the ethics of Islamic teaching.
Finance & Banking: Blades Corporation This is because of the volatility of international currencies and the risk that the changes in the value of the currencies will result in a loss from trade receivables and/ or payables depending on the […]
The Role and Functions of Law in the Banking Industry The first part provides answers to questions regarding the Cipollone versus Liggett Group case, the second part discusses the role and functions of law in the banking industry, and the third part looks at future […]
The Crime of Robbing the Big City Bank Combined with eyewitness testimony and video evidence, it can be stated beyond all doubt that Clark was guilty of the crime.
Citi Bank: Business and Corporate Law The enforces a number of Acts that include the Investment Advisers Act of 1940, the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Sarbanes Oxley […]
The Banking Industry: Brief Analysis They include the open market operations that are meant to regulate the amount of money in the reserve. This is important because it influences the transactions in the other parts of the economy, such as […]
First Gulf Bank Financial Activity The retail bank consists of accounts, deposits, credit cards, safe deposit lockers, loans and mortgages; the First Gulf Bank is the largest bank in United Arab Emirates with shareholder equity of over AED 20 billion […]
Forecasting of National Bank of Greece (Nbg Bank) Current liabilities are short term obligations that occur in the course of running the firm and have direct associations with sales.
Banking Analysis: Review The chart shows a continuous increase, with a few years of drop; but the scale of the chart for the most part is upward. The trend of consolidation comes across in the presentation of the […]
Islamic Finance and Banking. Basic Islamic Principles The Islamic banks approach to lending is very unconventional in that the bank does not give out the loan to a borrower per se, but instead acquires the asset on behalf of the borrower who […]
World Bank Mining Industry Forecast Therefore, this document will use the data provided by the bank to give a projection of mining, in a global capacity.
Corporate Cyber Risk Assessment: Bank of America Arguably, one of the most epic accomplishments of the 21st century was the invention of the computer and the subsequent creation of the internet.
The Economy: The US Banking System Capital formation refers to the distraction of the economy’s productive capacity for the creation of capital goods which eventually increase the productive capacity in the future.
Banking Contract and Fiduciary Obligations The paper explores the relationship between a bank and a customer from the perspective of fiduciary obligations of a banking contract.
Bank Loans and Deposits Role in Saudi Arabia Monetary System The major feature of Islamic banking is confined to the bank’s concept of Profit and Loss Sharing, in this arrangement the banks depositors are strictly speaking not creditors to the bank per se, but rather […]
Case Analysis on Banking Industry of Germany The globalisation and competition of the banking industry have increased because of the growing importance of banking in the marketplace. The decisions of Basel II and the EU for public sector banking and capital markets […]
Bank Fraud: Easyloan Bank Ltd and ABC Pty Ltd This is similar to the situation in the US where the office of the Attorney and a section of the Criminal Fraud Department of Justice handles mortgage prosecution cases.
Unremunerated Reserve Requirement Policy: Central Bank of Thailand Under the impact of the World War II, the government of Thailand upgraded the status of the Bureau to that of a central bank by passing the Bank of Thailand Act in the year 1942.
Solvency Risk and Liquidity Risk of a Bank Differences The aim of this report is to identify the meaning of the solvency risk, liquidity risk, credit risk, dynamic provisioning, and the effective control of the solvency risk besides the problems which the bank encounters […]
The Banking Crisis of 2007-2010 The role of Credit Rating Agencies in the subprime mortgage-related securities market turmoil was scrutinized by the Securities and Exchange Commission.
Banco Popular Español and the Saudi Investment Bank In this paper, the analysis of two banks and their risk management will be given: Banco Popular Espa ol S.A.with its abilities to take care of liquidity, credit, and other risks and the Saudi Investment […]
Comparative Study of Conventional and Islamic Bank Performance in the GCC Segregated by bank group and criterion variable, the correlation-based shortlist of independent variables are as shown in tables 1 to 3 below and overleaf.
Economic Development as the Key Driver of Global Private Banking and Wealth Management Industry The reverse reality of salient features of wealthy people in different parts of the world is the observation that the vast majority of the populace live in poor and deplorable conditions.
Bank of America: The Staffing Process The effectiveness of staffs recruited in the bank depends on the ability of the bank to recruit the most suitable employees.
The Royal Bank of Canada: Investment Analysis and Management As a result, the regional bank grew to a national bank and this success is not only attributed to the strategies of the institution itself but also the role played by the people of Canada […]
Comparison Between Saudi Hollandi Bank Suk vs. Bank Bonds Besides, another factor is that through investments in such bonds, the investor gains certain amount of ownership in the assets of the company in the extent of his investments, which unfortunately is not possible in […]
UBS Investment Company in the Swiss Banking Sector The relation of the Swiss banking industry with Swiss economy and the future aspect of investment in the industry are discussed.
Saudi Banking Industry and Riyad Bank’s Performance In this context this paper analyzes the performance of the Saudi banking sector during the period from 2003 to 2007 in general and that of Riyad Bank, one of the major players in the Saudi […]
Fransi Bank’s Financial Analysis and Forecast The financial analysis reveals the financial performance of the bank and the key factors that help the bank to be a leading organization in the industry.
UK Banking Sector Recovery Plan The objective of the analysis is to identify the possible benefits, weaknesses and implications of the plan to the British economy.
Three Financial Ratios for Stock Investor and Bank However in the stock investor will be looking for a long-term capital gain, the equity debt becomes more important since the stability of the company would be more important than the current liquidity.
Changes in the UK and US Banking Industry In the 1980s the US banking industry experienced increased transformation to the regulation of the financial institution by the Federal bank.
Al-Rajhi Bank of Saudi Arabia vs. Dubai Islamic Bank For the purpose of our assignment, we will use values of the total share capital of the year, the profit for the year, and the dividends paid to the shareholders of the banks.
The Bank of England and the Financial Services Authority One of the most crucial changes that the agreement effected was the removal of the supervisory and regulatory role of banks from the Bank of England to the FSA.
Trails to Success: Bank of America On analyzing the strategy of work of Bank of America and the requirements set for the applicants, it is possible to state that professional skills are the basis of a successful career in banking.
Performance Evaluation of Al Rajhi Bank The financial statements and other information of the bank available at its website have been used to evaluate the performance of the bank.
Ethical Implication of Banking Bailout As such, if the government uses a billion to rescue the banking sector, it has to obtain this money from somewhere else in the economy.
Corporate Security Strategy: Financial Risks in Banking Sector However, the absence of effective risk management interventions is posing significant challenges to the success of financial institutions in the industry.
Customer Service Improvement Project at Qatar National Bank Evaluation Hayes and Wheelwright’s 4-Stage model is a conceptual tool meant to evaluate the project with the extent of how its operational contributions improve the company’s competitiveness.
Theft and Workplace Problems: The Accidental Bank Robbery The complicating factors in the scenario are the probationary status and inexperience of Carol, the steadfast position of the customer about the money he received, and the reliance of Chris on the knowledge and experience […]
Why Do Banking Policies Need To Keep Up With The Times?
Chase Bank Company Analysis
Creditpia’s Banking Sector
Reforms Necessary in the Banking System
Lloyds and Northern Rock Bank Buildings Semiotic Analysis
Goldman Sachs Bank in Economic Turmoil
HSBC – Criticised Over Their Banking Methods
Background About Garati Bank in Turkey
Home Loan Offered by Bank of America Corporation (BAC)
Total Quality Management in Abu Dhabi Commercial Bank
CRM Implementation Project for the Bank
Abu Dhabi Commercial Bank: Corporate Governance Principles
Bank Reporting System. Guidelines and Rules
The World Bank: Definition and Activity
Network Information and Activity Times in Banking Firm
Business Strategy: Mountain Bank
Ethical Dilemma With the Bank Teller
Andrew Jackson and the “Bank War”
Diversity of Employees in the Boston Bank
Adopting a New IT Strategy in SBI Bank
Bank of America: Loans
Kiboko Bank: Business Ethics Issue
Grameen Bank’s Concertive Control Systems
Bahrain’s Al Salam Bank’s Offer for Bahraini Saudi Bank
Young Depositors and Face-To-Face Banking
Threat of New Entrants to Commercial Banking Industry
Oil Pricing and Demand in Connection With the US Banking System Position
Production & Organization Management in a Refinancing Organization
“Crossing the Green Line Between the West Bank and Israel” by Avram S. Bornstein
Standard Chartered Bank: Problems and Solutions
World Bank – IMF and the United Arab Emirates
Current Problems of the Banking Industry
The United States Banking Industry: Economic Profile
Biometric Scanners in Banking Industry
Money and Banking. Financial Markets
“Banking and SME Financing in the United States” Review
Integration of E-Commerce Websites in Banking Systems
Global Banking Secrecy Toolkit
Interstate Banking and Its Beneficiaries
Banking in Saudi Arabia: Main Facilities, History, and Future
“Data Mining and Customer Relationship Marketing in the Banking Industry“ by Chye & Gerry
Kuwait’s Banking Sector Overview
Competitive Advantage in the Banking Sector
Global Reputation and Competitive Advantage in Banking
International Banking System
Hongkong and Shanghai Banking Corporation in Qatar
Banking and Finance in Australia: Preventing Collapses
China-US Competition in the Banking Sector
“A Century of US Central Banking” by Bernanke
Gambling, Fraud and Security in Banking
High-Risk Gambles Prevention in Banking
Corporate Social Responsibility: JPMorgan Chase and Barclays Pls Banking Scandals
Banking and Risk Management
Banking and Monetary Policy During Recession of 2008-09
Dubai Macroenvironmental Analysis for Banking
Banking: Interest Rates and Credit Creation Process
Banking in David Ashby’s “Money Mechanics”
Banking Sector in the State of Kuwait
International Banking Sector: Financial Regulation
Kuwait Economy and Corporate Governance in Banking Sector
Bond Market and Banking in Gulf Countries
Customer Satisfaction Management in Banking Sector
Westpac Banking Corporation Risk Management Policy
Citigroup: Credit Default Swaps in the Banking Industry
Risk in Banking Internal Control System
Hong Kong and Shanghai Banking Corporation’s Entry Into Japan
Banking Instability During the Global Financial Crisis
Satisfaction Management in Banking Industry
Hong Kong and Shanghai Banking Corporation Holdings
Retail Banking Products and Services
The Shift From Physical Personal Banking to Online Banking
Banking Industry Guidance
Employee Turnover Rate in UAE Banking Sector
Islamic Banking: Sales and Lease-Centered Models
Arbitration in Islamic Banking and Finance Dispute
Chief Information Officer’s Role in E-Banking
The Shadow Banking System: Financial Crisis Source
China Banking Supervision System: Defects and Improvement
Online Activity of Banking Sector in the UAE
Operational Risk in Conventional and Online Banking
UAE Banking Industry’s Status in a Global Context
Customer Engagement in the Greek Retail Banking Sector
Landsbanki Banking Analysis and Bank Alternatives
Kenya as a Leader in Mobile Banking of the World
Resistance to Change in Banking Orhanisations
Resistance to Change in the Banking Sector
Customer Service in the UAE Banking Sector
Australia and New Zealand Banking Group Management
Corruption and Ethics in China’s Banking Sector
Islamic Banking Principles and Relevance
Islamic Banking: Tools and Techniques
The Banking Industry and Interest Rates
Banking Sector Cyber Wars and International Hacking
Islamic Banking and Financial Markets Critical Issues
JP Morgan Chase’ Banking Analysis
Banking Institutions Improvement
Money’s and Banking’ Concepts
The Basel Committee Role in Banking
China’s Banking Sector Analysis
Greenbelt Banking Company’s Human Resource Management
Islamic Banking Principles
Boosting Sales in Retail Banking for 2012
Banking Regulation and Taxation
UAE’s Banking Industry Analysis
Money and Banking: The Economic Recession of 2007
The Russian Banking Sector
The Use of CRM in Australian Banking Industry
Ijtihad in Islamic Banking
Money and Banking: David S. Ashby’s Perspective
Sustainable Development: The Banking Sector
Big Four: Banking in China
Banking Credit Risk Management
Market Elasticity’s in Banking Industry
How to Keep Customers Loyal to Online Banking
Banks, Bank Firms and Financial Intermediaries
Market-Based Versus Bank-Based Financial Systems
Bank Mergers and Cost of Capital
Managing People in the Bank of America
Service Quality Model in Internet Banking and Finance
Projected Customers Maintaining Strategies in Banking Industry
The Banking Industry in the United Arab Emirates
IPScape in the Australian Banking Sector
Bonus Banking: Case of UBS
Crossvergence in the Banking Industry
Ameribank and Online Banking
Benchmarking in the Investment and Banking Sector
Overcoming the Debt Crisis by European Banking Sector
National Bank of Kuwait: Employee Appraisal Problem
An Investigation of the Sustainable Benefits of Agency Banking in Kenya
HSBC Bank’s Kenyan Entry Strategy
The Basel Committee on Banking Supervision
Bank of America and Silver A-Plus Card
An Evaluation of the Economic Issues Identified in the ICB Report on Banking
Comparison of the United States and Saudi Arabian Banking Sector
Crisis in the Banking System of Korea
Financial Industry Analysis on MCU Sustainable Banking
Problems in Banking Regulation
Central Banking and the Money Supply
The Different Roles Played By the Central Bank, Depository Institutions, and Depositors in the Determination of Money Supply
The UK Banking Practice That Led to Financial Crisis
Is Bonus Banking the Answer?
Human Resource Management at the Bank Alfalah
Bank of America: Realizing Servant Leadership
A Marketing Research on Mobile Banking
The Too Big to Fail Phenomena in the Banking Sector
Mobile Banking Innovation
HSBC Holdings: Chinese Banking Sector
RBS Citizen Bank Culture and Change
Federal Reserve; Money and Banking
Employee Motivation Factors in Banking
Money: Evolution, Functions, and Characteristics
Crisis Management: Online Banking Security Breach
Mobile Banking in Saudi Arabia: Towards Understanding the Factors that Affects the Sector
Société Générale Bank: Effective Security Controls
Banking Industry Analysis
The History of U.S. Banking Crises: Cause and Effect
What Is Current Research in Money and Banking?
What Is the Study of Money and Banking?
What Are the Advantages of Banking?
U.S. Money and Banking: What Is the Key Issue Facing Us?
What Are the Main Topics of Money and Banking?
What Is the Best Research Topic in Money and Banking?
What Is the Divergence Between Accounting Standards and Banking Regulation?
What Were the Causes of the Banking Crisis of the 1930s?
What Are the Types of Banking?
What Is the Biggest Problem in Money and Banking?
How Do I Choose a Topic for Research in Money and Banking?
What Are the Most Important Money and Banking Services?
What Is the Banking System Like in South Korea?
What Are Some Good Thesis Topics in Finances and Banking?
What Are the Money and Banking?
What Are the Types of Money and Banking?
Why Is Banking Research Important?
What Are the Main Functions of Money and Banking?
What Is the Main Role of Banking?
What Do You Study in Banking?
What Are Money and Banking Used For?
Who Invented Banking?
What Are Basic Money and Banking Skills?
What Does Mobile Banking Need?
What Are the Categories of Money and Banking?
What Is the Purpose of Money and Banking?
How Does Islamic Banking Work?
What Is the Connection Between Accelerating Inflation and Decreasing Effectiveness of Banking Regulation?
What Is the Role of Money and Banking in the Economy?
What Are the Current Trends in Banking Industry?
Cost Accounting Essay Topics
Crisis Management Essay Titles
Corporate Finance Essay Ideas
Forecasting Questions
Insurance Ideas
Risk Assessment Questions
Quality Assurance Questions
Private Equity Research Ideas
Chicago (A-D)
Chicago (N-B)

IvyPanda. (2024, March 2). 350 Banking Essay Topic Ideas & Examples. https://ivypanda.com/essays/topic/banking-essay-topics/

"350 Banking Essay Topic Ideas & Examples." IvyPanda , 2 Mar. 2024, ivypanda.com/essays/topic/banking-essay-topics/.

IvyPanda . (2024) '350 Banking Essay Topic Ideas & Examples'. 2 March.

IvyPanda . 2024. "350 Banking Essay Topic Ideas & Examples." March 2, 2024. https://ivypanda.com/essays/topic/banking-essay-topics/.

1. IvyPanda . "350 Banking Essay Topic Ideas & Examples." March 2, 2024. https://ivypanda.com/essays/topic/banking-essay-topics/.

Bibliography

IvyPanda . "350 Banking Essay Topic Ideas & Examples." March 2, 2024. https://ivypanda.com/essays/topic/banking-essay-topics/.

Search Search Please fill out this field.

Financial Sector: Definition, Examples, Importance to Economy

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

Ivestopedia / Michela Buttignol

What Is the Financial Sector?

The financial sector is a section of the economy made up of firms and institutions that provide financial services to commercial and retail customers. This sector comprises a broad range of industries including banks, investment companies, insurance companies, and real estate firms.

Key Takeaways

The financial sector is a section of the economy made up of firms and institutions that provide financial services to commercial and retail customers.
A strong financial sector is a sign of a healthy economy.
The financial sector generates a good portion of its revenue from loans and mortgages and thrives in a low-interest-rate environment.
The sector is comprised of many different industries including banks, investment companies, insurance companies, and real estate firms.

Understanding the Financial Sector

A large portion of this sector generates revenue from mortgages and loans, which gain value as interest rates drop. The health of the economy depends, in large part, on the strength of its financial sector. The stronger it is, the healthier the economy. A weak financial sector typically means the economy is weakening.

Many people equate the financial sector with Wall Street and the exchanges that operate on it. But there's much more to it than that. The financial sector is one of the most important parts of many developed economies. It is made up of brokers , financial institutions, and money markets—all of which provide the services needed to help keep Main Street functioning every day.

In order for an economy to remain stable, it needs to have a healthy financial sector. This sector advances loans for businesses so they can expand, grants mortgages to homeowners, and issues insurance policies to protect people, companies, and their assets. It also helps build up savings for retirement and employs millions of people.

The financial sector generates a good portion of its revenue from loans and mortgages. These gain value in an environment where interest rates drop. When rates are low, the economic conditions open up the doors for more capital projects and investment. When this happens, the financial sector benefits, meaning more economic growth.

Financial Sector Makeup

As mentioned above, the financial sector is made up of many different industries ranging from banks, investment houses, insurance companies, real estate brokers, consumer finance companies, mortgage lenders, and real estate investment trusts (REITs).

The financial sector is one of the largest portions of the S&P 500 . The largest companies within the financial sector are some of the most recognizable banking institutions in the world, including the following:

JPMorgan Chase (JPM)
Wells Fargo (WFC)
Bank of America (BAC)
Citigroup (C)

While these large companies dominate the sector, there are other, smaller companies that participate in the sector as well. Insurers are also a major industry within the financial sector, being made up of such companies as American International Group (AIG) and Chubb (CB).

Investing in the Financial Sector

Economists often tie the overall health of the economy with the health of the financial sector. If financial companies are weak, this is a detriment to the average consumer. Financial companies provide loans for businesses, mortgages to homeowners, and insurance to consumers. If these activities are restricted, it stunts growth in both small businesses and real estate.

Financial stocks are very popular investments to own within a portfolio. Most companies within the sector issue dividends and are judged on the overall strength of their financial health. During the financial crisis of 2007-2008 , the financial sector was one of the hardest hit, with companies like Lehman Brothers filing for bankruptcy. After an influx of government regulation and restructuring, the financial sector is considerably stronger.

Financial ETFs, such as the Financial Select Sector SPDR Fund (XLF)—the largest financial ETF—can provide investors with broad exposure to the sector.

As of the close of trading on Sept. 29, 2020, the financial sector had a combined market capitalization of $5.59 trillion. The sector has underperformed the S&P 500 index in the trailing 12 months (TTM), where the S&P 500 is up 14.3% while the S&P 500 Financials Sector has fallen 13.7%.

Special Considerations

Some of the positive factors that affect the financial sector include:

Moderately rising interest rates. As rates rise, financial services companies can earn more on the money they have and on credit they issue to their customers.
Reducing regulation. Whenever the government decides to cut back on red tape, members of the financial sector will benefit. This means it could lessen the burden while increasing profits.
Lower consumer debt levels. as consumers decrease their debt loads, they lessen the risk of defaults . This lighter load also means they may have a tolerance for more debt, further increasing profitability.

Conversely, investors should consider some of the negative factors that affect this sector as well:

Rapid interest rate increases. If rates rise too quickly, demand for credit such as mortgages could drop, which could negatively affect certain parts of the financial sector.
Yield curve flattening. If the spread between long- and short-term interest rates drop too far, the financial sector could start to struggle.
More legislation. Government regulation can have a big impact on the financial sector. While it may help protect consumers, more red tape can bog down a business that operates in financial services.

Fidelity. " Financials ." Accessed Sept. 30, 2020.

Terms of Service
Editorial Policy
Privacy Policy
Your Privacy Choices

Essay on Bank

Banks are financial institutions that deal in monetary transactions. Banks form an integral part of any society. There are numerous banks located in different parts of our country. While earlier there were limited number of banks with a few branches in big cities and towns in India, a number of new banks have opened in the last few decades with branches in every nook and corner of the country. Banks provide a lot of services based on the customer’s requirements. They provide locker facilities, safe deposits, ATM Services, Fixed Deposits, money transfer, loan for business and houses and several other monetary services to their customers.

Long and Short Essay on Bank in English

Here are essay on Bank in English of varied lengths to help you with the topic whenever you required.

After going through these Bank essay, your knowledge about banks, their functioning and their usefulness will enhance and you will emerge as a knowledgeable person.

These essays will prove useful in your school or college assignments, especially for students of commerce or banking.

You can select any bank essay of your choice given below:

Bank Essay 1 (200 words)

The banking system that involves accepting deposits and lending money initiated centuries back in various parts of the world. The system improvised over the time and the banks these days offer various other facilities in addition to the basic depositing and lending of money.

People are encouraged to keep their money in the banks because it is a safe and secure way to store the money. The money stored in the bank in the form of fixed deposits and recurring deposits also fetches a good amount of interest. In addition to money, one can also keep jewellery and important papers in the bank lockers.

Providing loans, which is another primary function of the banks, is also beneficial for individuals and businesses in many ways. Salaried people can build their assets such as property, car, etc easily with the help of loans from the bank. Businessmen can expand their businesses with this facility. A number of other services are also provided to the businessmen to ease their financial transactions and aid in the growth of their business.

Online Banking has further enhanced the process of banking. Various banking services such as checking balance, transferring amount, applying for loan are now provided on the bank’s website. All the customers require doing is opting for internet banking service.

Bank Essay 2 (300 words)

Introduction

Banking system has been in place since centuries. The system has been prevalent in India as well as other parts of the world. Only the services provided and the functions carried out have enhanced over the time.

History of Banks

Banking service began back in the 14 th century in some parts of Renaissance Italy. It was initiated on the lines of the concept of lending and borrowing that took place among people since the ancient era. In the ancient times, the merchants gave grain loans to the traders and farmers. This was called the barter system. Over the time the system evolved to accepting deposits and lending money.

The Fuggers, the Medicis, the Berenbergs, the Rothschilds are among some of the banking dynasties that are known to play a central role in the history of banking. They dominated this sector for centuries. Modern banking services such as issuance of banknotes and reserve banking started in the 17 th century. Bank of England and The Royal Bank of Scotland are some of the oldest banks in the world.

History of Banks in India

In India, the banking system dates back to the Vedic civilization. Loans were given to the needy in that era too only the nitty-gritty’s involved in the same were different. Loans deeds in that period were known by the name rnalekhya or rnapatra.

Big businessmen and landlords gave money to the small traders and farmers on interest in the earlier times. This culture is still prevalent in some villages in the country. The lands or other valuable assets of those who were unable to pay the amount were confiscated just as the banks do these days.

The first bank established in India was the Bank of Hindustan. It was opened in the year 1770 in Calcutta. Bank of Bombay, Bank of Calcutta and Bank of Madras were set up later in the early 19 th century.

There are numerous types of banks in every country to cater to the needs of different customers. They provide various services and aid in the growth of the country’s economy.

Bank Essay 3 (400 words)

A bank is an institution that accepts money deposits from the public and provides funds on credit to individuals as well as firms. These are the primary functions of a bank but not the only functions. They provide various other services to its customers such as locker facility, transfer of funds, issuance of drafts and portfolio management to name a few.

Importance of Banks

Banks are important for the individuals as well as the development of the country’s economy. Here is why these institutions are of importance:

Provides Safety and Security

Money kept at home is not safe. It is prone to burglary. When you keep your money in the bank, it is the bank’s responsibility to safeguard it. You do not have to worry about its security.

Encourages Saving Habits

Banks offer various schemes from time to time to encourage saving habits in people. The money put in the bank is not only saved but also grows. You have the option of withdrawing it any time you want.

Eases Trade and Commerce

Banks promote trade within the country by providing loans and advances to the traders. It also eases the process of trading between different countries. They provide easy money transaction options to smoothen the process. It is easy to send and receive funds from anywhere with the advancement in the banking system.

Promotes Agricultural Sector

Agricultural sector is an important part of the economy. There are special banks that provide loans to the farmers at low interest to promote agricultural activities. Banks thus aid in promoting the agricultural sector.

Aids in Development of Industries

Banks accept deposits from individuals and businesses and provide loads to the industries. They thus aid in the development of various industries in this way. The loan can be repaid in easy instalments.

Provides Employment Opportunities

Banks provide loans for the growth and development of the agricultural and industrial sectors. As these sectors expand, a number of employment opportunities are created for the public.

Banks are an important part of any country. The modern banking services have helped in easing the process of trade, development of industries and other activities that help in the development of the country’s economy. Banks and other financial institutions that promote the growth of businesses and safeguard the money and other valuable assets of individuals are certainly play an integral role in the development of a country’s economy.

Bank Essay 4 (500 words)

Banks play an important role in maintaining financial stability in the country. They offer numerous services to help you manage your finances better. These institutions thus form a vital part of any society.

Functions of Banks

The functions of banks have broadly been classified into two categories. These are the primary functions and the secondary functions. Here is a look at these in detail:

Primary Functions

Primary functions are the main functions of the banks. These include accepting deposits and providing loans. Here is a brief look at these functions:

Accepting Deposits

These deposits are basically of four different types:

Saving Deposits: These deposits encourage public to save money. The money can easily be withdrawn and deposited in the saving account without much restriction. The interest rate here is however quite low.

Current Deposits: This account is especially for the businessmen. These accounts offer facilities such as overdraft that are beneficial for the businesses. No interest is paid in this account.

Fixed Deposits: In a fixed deposit a considerable big amount is deposited in the account for a fixed period of time. The rate of interest is high in such deposits.

Recurring Deposits: A certain amount is deposited at regular intervals in such an account. The rate of interest is high. However, the amount cannot be withdrawn before a certain period.

Providing Loans

Here are the types of loans and advances offered by the banks:

Loans: Loans are offered for both short term and long term period. The rate of interest charged on the same varies based on the type and duration of loan. It can be repaid in instalments.

Cash Credits: The customers have the facility to take cash credit up to a certain amount which is fixed in advanced. A separate cash credit account needs to be maintained for this.

Overdraft: This facility is for businessmen. It is thus provided to the current account holders. They do not require maintaining a separate account to avail this facility.

Secondary Functions

Secondary functions, also known as non-banking functions, are of two types. These are agency functions and general utility functions. Here is a brief look at both these types of functions:

Agency Functions

The bank also acts as an agent for its customers. A number of agency functions are performed by this institution. These include collection of cheques, periodic payments, portfolio management, periodic collections and transfer of funds. Banks also act as executors, administrators, advisors and trustees for their customers. They help their customers deal with other institutions.

General Utility Functions

Banks also perform general utility functions that include providing locker facility, underwriting of shares, dealing in foreign exchange, issuance of drafts and letter of credits, drafting project reports, undertaking social welfare programmes such as public welfare campaigns and adult literacy programmes.

Discounting of bill of exchange is another service provided under this.

While initially the functions of banks only included accepting deposits and providing loans; they have started providing various other services now. All these facilities are aimed at helping the customers with their finances.

Bank Essay 5 (600 words)

Banks are financial institutions that lend money and accept deposits from general public. Banks maintain the flow of money in the country and are important for its economic growth. There are different types of banks that offer different kinds of services to individuals as well as businesses.

Types of Banks

Here are the various types of banks and their functions:

National Banks

Also known by the name, Central or Federal bank, these banks manage the financial system of the government. These non-profit making institutes serve as bankers to the other banks. There is one Central bank in every country. Some of the functions of National banks include supervising foreign exchange, controlling the country’s currency and issuance of paper currency. They do not deal with the general public.

Retail Banks

These are the most common types of banks. These are mainly set up to focus on the requirements of the general public. They open your savings account, provide credit cards, give loans and provide locker facility among other services.

Saving Banks

These are especially established to inculcate the habit of saving money among the people. The deposits from the customers are turned into securities and bonds in these banks. These were set up way back in the 18 th century in European countries. Besides, accepting deposits from individuals these banks offer various other services too.

Commercial Banks

The main aim of these banks is to aid the business class. They provide loans to the businessmen and also provide other services that are useful for the business men. Some of these services include bill of exchange, overdraft and cheque collection.

Investment Banks

These banks are also set up to aid the businesses. These banks help the businessmen establish a foothold in the financial markets. Investment banks facilitate those businessmen who require selling debt to the investors or want to go public with their business.

Land Mortgage Banks

Also known as agricultural banks or Land Development banks, these are mainly set up to aid the agricultural sector by financing it. These banks also play an important part in land development. The reason why this special category of banks has come into being is that there is a lot of risk in financing the agricultural sector and the commercial banks that support other businesses are not ready to take such risk.

Co-operative Banks

Co-operative banks provide loans to small-scale farmers, small-scale businesses and salaried people. They provide both commercial and retail services to people. These banks are registered under Co-operative Societies Act, 1912.

Consumer Banks

These banks have exclusively been set up to provide loan for purchasing durable consumer goods such as car, washing machine, refrigerator, furniture, etc. These banks give their consumers the leverage to repay loans in easy instalments. These are mostly found in first world countries.

Industrial Banks

Also known by the name Development Banks, these banks are established to aid the industrial sector. These banks accept cash by issuing shares and debentures. They provide long-term loan to the industries to help them expand and develop. Many such banks have been established in the country post independence.

Exchange Banks

These banks are particularly engaged in financing foreign trade. Some of the main functions of these banks include discounting foreign bills, purchasing and selling silver and gold and providing assistance in carrying out export and import trade.

Banks are established to ease the financial issues of the general public as well as the country as a whole. Different types of banks serve different purposes and have been set up to cater to the needs of various classes.

Money essay, music essay, importance of education essay, education essay, newspaper essay, my hobby essay.

Skip to primary navigation
Skip to main content
Skip to primary sidebar

UPSC Coaching, Study Materials, and Mock Exams

Enroll in ClearIAS UPSC Coaching Join Now Log In

Call us: +91-9605741000

History of Banking in India

Last updated on October 5, 2023 by ClearIAS Team

The History of Banking in India dates back to before India got independence in 1947. The financial system has been around for almost as long as civilization itself, and the Indian banking system is no exception. Read here to learn about the history of banking in India.

A nation’s financial system supports its economic growth. The banking industry in India has seen significant changes during the past five centuries due to the state of the economy, the need for financial services, and the subsequent advances in technology.

It appears from historical accounts from Greece, Rome, Egypt, and Babylon that temples did more than just save money; they also lent it out. One reason temples were often looted during conflicts was that they frequently served as the financial hubs of their towns.

Since the first coins were produced and wealthy individuals realized they required a secure location to put their money, banking has existed. For commerce, wealth distribution, and taxation, ancient empires also need a sound financial system.

Table of Contents

The Vedas , the ancient Indian texts mention the concept of usury, which is a practice of making unethical monetary loans which is advantageous to the lender. The Sutras (700–100 BCE) and the Jatakas (600–400 BCE) also mention usury.

During the Mauryan period (321–185 BCE), an instrument called adesha was in use, which was an order on a banker directing him to pay the sum on the note to a third person, which corresponds to the definition of a modern bill of exchange.

The use of loan deeds continued into the Mughal era and was called dastawez (in Urdu/Hindi). The evolution of hundis, a type of credit instrument, also occurred during this period and remains in use.

The history of banking in India can be broadly classified as:

Pre-independence Phase (1770-1947)
Post-independence Phase (1947-till date

The second phase can be further divided for better understanding-

Nationalisation Phase (1947-1969)
Post-nationalisation Phase (1969-1991)
Liberalisation Phase (1991-till date)

History of Banking in India: Pre-independence phase (1770-1947)

In India, modern banking originated in the middle of the 18th century.

The first banking institution was the Bank of Hindustan established in 1770 and it was the first bank at Calcutta under European management. It was liquidated in 1830-32.
In 1786 General Bank of India was set up but it failed in 1791.

Calcutta developed as a banking hub since it was India’s busiest port for trade, mostly because of the British Empire’s trade.

The British East India Company granted the Bank of Calcutta, Bank of Bombay, and Bank of Madras licenses to establish the three Presidency banks. For long years, they operated in India as if they were central banks.
The Bank of Calcutta established in 1806 immediately became the Bank of Bengal.
These three banks joined in 1921 to become the Imperial Bank of India.
Later, in 1955, the Imperial Bank of India was nationalized in 1955 and was named The State Bank of India, which is currently the largest Public sector Bank.
Before the Reserve Bank of India was founded in 1935 under the Reserve Bank of India Act, of 1934, the presidency banks and their successors served as quasi-central banks for a long time.
Consequently, the State Bank of India is the country’s oldest bank.

During this time, as many as 600 banks were founded.

Many large banks were unable to function because of a lack of management expertise, equipment, and technology, which resulted in laborious procedures and mistakes made by humans, making Indian account holders vulnerable to fraud.

A few banks have endured and are still around today like the Allahabad Bank (1865), Punjab National Bank (1894), etc.

As a result of the Swadeshi movement, various local merchants and politicians set up banks for the Indian population between 1906 and 1911. Numerous of these are still in use.

The financial sector saw rough periods from the First World War (1914–1918), till the conclusion of the Second World War (1939–45), and two years later, until India gained its independence. Many banks failed as a result of these chaotic times.

History of Banking in India: Post-independence phase (1947-1991)

The Government of India (GOI) chose the strategy of a mixed economy with considerable market involvement in 1948 to develop the economy, continuing the evolution of the Indian banking sector post-independence.

After being established in 1935, the Reserve Bank of India was nationalized in 1949 and given the authority to oversee, govern, and inspect all banks in India.

All of India’s main banks were privately run at the time of independence, which raised concerns because rural residents were still reliant on moneylenders for financial support.

The then-Government chose to nationalize the banks to address this issue.

Also read: Unified Payment Interface (UPI): Made Simple

Nationalization of banks

The Government of India issued the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance in 1969 and nationalized the 14 largest commercial banks in India at that time.

Allahabad Bank
Bank of India
Bank of Baroda
Bank of Maharashtra
Central Bank of India
Canara Bank
Indian Overseas Bank
Indian Bank
Punjab National Bank
Syndicate Bank
Union Bank of India
United Bank

In 1959, 7 subsidiaries of SBI were nationalized:

State Bank of Patiala
State Bank of Hyderabad
State Bank of Bikaner & Jaipur
State Bank of Mysore
State Bank of Travancore
State Bank of Saurashtra
State Bank of Indore

In the year 1980, another 6 banks were nationalized, taking the number to 20 banks:

Andhra Bank
Corporation Bank
New Bank of India
Oriental Bank of Comm.
Punjab & Sind Bank
Vijaya Bank

Post-nationalization

In India, nationalizing banks marked a turning point toward financial stability, particularly in rural areas where there were no big banks. The efficiency of the financial sector in India was enhanced by the nationalised banks.

The step has a huge impact on the financial system of the country-

When branches were established in the farthest reaches of the nation, bank access improved.
Since more people had access to banks as a result of the opening of new branches, the average domestic saving increased by two times.
A comparable rise in public deposits resulted from the expansion of banks’ reach, which aided the expansion of export-related sectors, agriculture, and small businesses.
Improved effectiveness and more public confidence were the results of greater accountability.
The economy expanded significantly as a result of the small-scale industries’ boost.
After being nationalised, RBI had already established a precedent by ranking among the biggest employers. As more banks followed the lead, this continued.
Banks provide financing to marginal farmers at reasonable rates, which significantly boosted India’s agricultural industry.

Liberalization (1991)

To increase the involvement of private and foreign investors, the Government implemented economic liberalization in 1991, which resulted in a significant change in its economic policies.

Read the following articles for a better understanding of liberalization:

Economic Reforms of 1991
Effects of Liberalization on the Indian Economy

The history of banking in India has gone through numerous changes and is of the most mature financial systems.

Even though the reach of banks has spread to rural areas also, the financial inclusion of the poor remains a challenge. Many initiatives like NABARD are being implemented to rectify this issue.

Indian banking is walking hand in hand with technological advancement as well.

The National Payments Corporation of India (NPCI) and the Government of India together unveiled the UPI (Unified Payment Interface) System and BHIM in 2016, ushering in the era of digital payments and what is commonly referred to as mobile banking.
Following technological developments, several fintech in the nation has advanced digital banking in collaboration with conventional banks to offer a wide range of financial services.
Full-stack “digital banks,” which will solely rely on the Internet to provide their services and not on their physical branches, were planned to be established by Niti Aayog in 2021.
Digital banking in India is anticipated to undergo a revolution as a result.

Aim IAS, IPS, or IFS?

About ClearIAS Team

ClearIAS is one of the most trusted learning platforms in India for UPSC preparation. Around 1 million aspirants learn from the ClearIAS every month.

Our courses and training methods are different from traditional coaching. We give special emphasis on smart work and personal mentorship. Many UPSC toppers thank ClearIAS for our role in their success.

Download the ClearIAS mobile apps now to supplement your self-study efforts with ClearIAS smart-study training.

Reader Interactions

October 31, 2023 at 7:10 pm

Banking exams

Don’t lose out without playing the right game!

Follow the ClearIAS Prelims cum Mains (PCM) Integrated Approach.

Join ClearIAS PCM Course Now

UPSC Online Preparation

Union Public Service Commission (UPSC)
Indian Administrative Service (IAS)
Indian Police Service (IPS)
IAS Exam Eligibility
UPSC Free Study Materials
UPSC Exam Guidance
UPSC Prelims Test Series
UPSC Syllabus
UPSC Online
UPSC Prelims
UPSC Interview
UPSC Toppers
UPSC Previous Year Qns
UPSC Age Calculator
UPSC Calendar 2024
About ClearIAS
ClearIAS Programs
ClearIAS Fee Structure
IAS Coaching
UPSC Coaching
UPSC Online Coaching
ClearIAS Blog
Important Updates
Announcements
Book Review
ClearIAS App
Work with us
Advertise with us
Privacy Policy
Terms and Conditions
Talk to Your Mentor

Featured on

and many more...

Take ClearIAS Mock Exams: Analyse Your Progress

Analyse Your Performance and Track Your All-India Ranking

Ias/ips/ifs online coaching: target cse 2025.

Are you struggling to finish the UPSC CSE syllabus without proper guidance?

Essay On Technology In Banking

Technology and Banking Services The introduction of Information Technology services by the banks has positively impacted on the customers and has brought revolution in the operation of the banks. Technological facilities like ATMs, Mobile Money, Branch Network, Telephone Banking, Internet Banking etc have introduced by banks for the customers. The explosion of technology is changing the banking industry from paper to Internet and branch banks to digitized and networked banking services. It has already changed the internal accounting and management systems of banks. It is now fundamentally changing the delivery systems banks use to interact with their customers. All over the world, banks are still struggling to find a technological solution to meet the challenges of a rapidly-changing environment. It is clear that this new technology is changing the banking industry forever. Banks with the ability to invest and integrate information technology will become dominate in the highly competitive global market. Bankers are convinced that investing in IT is critical. Its potential and consequences on the banking industry future is enormous. Computers are getting more sophisticated. So Computers have given banks a potential they could only dream about and have given bank customers high expectations. The changes that new …show more content…

They can arrange to have them paid by direct debit every month at a time that suits them, or they can make one off transfers as and when the bills come in. This means that there’s no longer any need to pay a physical visit to a branch to pay bills and it also means they are more likely to pay them on time. People who find it more difficult to manage their money can arrange for as many bills as possible to be paid just after their salary clears their account so that they know the essentials are covered before they can spend on

Legacy Hospices Research Paper

If an invoice comes in regarding something that is not required for the patient to have a special approach is taken to state, why they will not be covering this bill then they return it to that office. This job requires a lot of organization. Once an invoice comes in they do not automatically pay them, therefore the stack of invoices becomes big toward the end of the month. I also sat with a lady named Nelda, that covers all the financial statements except the bank reconciliation. I was able to see the format that is used to get all of these reports ready for the end of the month.

Hi Guys Problem Statement

This has resulted in customer frustration at the need to visit the branch. The existing process is expensive and costs the bank 4MM in faxing and branch employee capacity."

Maria T. Miller's Pinterest: Case Study

Begin your active debt management by negotiating lower interest rates on current debts or consolidating loans with a new loan with a lower APR. Be sure to stop taking on new debt -- use cash and debit cards and stop carrying credit cards -- as you move toward becoming debt free. If you have upcoming large expenses or simply want to build a larger emergency fund, you can save money at this time as well. Simply create a spending plan that accounts for every dollar you earn, with appropriate amounts allotted to your set expenses and discretionary expenses, and the extra earmarked for additional debt payments and savings.

The Stock Market Crash Of The 1920's

They put items on credit or installment without worries that their financial state would be heavily impacted. William E. Leuchtenburg informs that “consumers bought goods on installment faster than their income was expanding, it was inevitable that a time would come when they would have to reduce purchases and cutback in buying. ”(Document six) While individuals were impacted by throwing all of their money away, the economy as a whole would now fail as well. If people reduce purchases then businesses don't get the money they need to survive and slowly the

Wartime Inflation During The American Revolution

The reason behind this was to set security for the amount of money that was being borrowed from these “banks”. Soon the “Bills on Loan” notes became legal for all debts. In a way, it wasn’t exactly fair to people in the past, because the principal and interest payments were supposed to be paid annually, but now were extended for the first few years. Once those years had passed the payment form would be in a note of “Bills on Loan” or

Bank Of America Mobile Banking Case Study

Finally, we will review how mobile technology is likely to influence the banking industry in the future. Bank of America, originally founded in 1904 as Bank of Italy merged with NationsBanking in September 1998. Ever since Kenneth Lewis became a CEO in 2001, Bank of America has expanded its business in retail banking, global wealth management, middle market lending, large corporate lending, global treasury services, investment banking and online and mobile banking, which we will discuss, as mentioned before over the course of this essay. (case study) What benefits does mobile banking provide to consumers?

22-29 Case Study

What is the average debt for individuals 22-29? -Average debt for 22 - 29 year olds: $16,120 2.Why is it important to think about "needs" and "wants"? What are the differences between these? -Needs: Home, Clothes, Food, Job, Transportation, Insurance, and Future Savings. Wants: Earrings, Brand new shoes vs Your Shoes Last year, Shopping at an expensive store vs using coupons or go to a resale clothing store.

Persuasive Speech On Student Debt

Many of today’s millennials are burdened by heavy student debt that can lead to emotional and financial stress over the holiday shopping season. According to a 2016 survey from research agency TNS and Citizens Bank, adults between the ages of 18 and 35 have an average of $41,286.60 in student loan debt. That kind of debt can make it very hard for young people to hit other important milestones, like buying a home or even a car — let alone afford all the gifts of their loved ones’ holiday wish lists. Here are some tips to help graduates balance between their holiday budgets and student loan debts. 1.

10, 000 In Debt Reflection

If you 're going to use a credit card pay it off at the end of the month. If you 're going to use a credit card use one that you get rewards for using, so you at least get something back for spending. Budget your money better, but still budget for a little entertainment each month, you can also find activities in your community that are free and entertaining.

Tax Planning Strategies

Using the right strategy can help you defer or avoid paying

Overpaid Bank Tellers Case Study

The Overpaid Bank Tellers There are important factors from The Overpaid Bank Tellers that need to be mentioned prior to examining the dilemmas and possible solutions for Russell Duncan and State Bank. The first factor is that State Bank is one out of four banks located within a community with a population of 50,000 and it holds a high reputation with them. Secondly, State Bank has been acknowledged as the leading bank out of the four.

Barclays Competitive Advantage

Therefore, the source of competitive advantage for Barclays would be quality customer care as envisaged in their strategy in citizenship and continuous development of new and unique products for the market. The ability to enjoy economies of scale from supplies and large capital structure should also offer Barclays, a hand in increasing competition. Institutional capabilities and endowment Barclays bank has both physical and intangible resources to help it grow to a leading financial institution in its strategic plans. It has both distinctive and threshold capabilities to allow it create a competitive advantage against its rivals (Warner, 2010).

How To Decrease Your Debt Essay

When you end up debt free from one card, use that money to help pay off the next credit card. A general rule in credit card usage is that one shouldn’t utilize more than twenty percent of their credit limit. Be Frugal This can tie into creating a budget, however, as stated before it’s frivolous spending that puts many people in debt. Even spending as little as five dollars over can put you in a slump for a few months.

My Ideal Government Essay

The bank is fair and will give certain amounts of your money at a time. The more you take out/use up the less you have. Just like in freedom the more you disrespect your freedom the less you have. Just like in the real world where you can do and say what you want as long as it will not hurt or negatively affect the country in any way. My ideal government would one of the people for the people.

Essay On Digital Technology

Task 2 2B Digital technology ¬– a health threat? We live in a rapidly changing, highly technological world, where the present day digital technology affects several parts of our lives. At work, people use digital technology to communicate, gather information and solve problems relevant to their place of work. A growing number of people also use digital technology at home, to keep in touch with friends and family, check bank balances, play interactive games, participate in online forums and interact with others on social media websites and mobile apps, such as Facebook, Twitter and Instagram.

More about Essay On Technology In Banking

Banking on interest rates: A playbook for the new era of volatility

The recent accelerated rise in global interest rates, the fastest in decades, brought the curtain down on an extended period of cheap money but provided little clarity on the longer-term outlook. In 2024, competing forces of tepid growth, geopolitical tension, and regional conflict are creating nearly equal chances of higher-for-longer benchmark rates and rapid cuts. In the banking industry, this uncertainty presents both risks and opportunities. But in the absence of recent precedent, many institutions lack the necessary playbook to tackle the challenge.

As rates have risen from their record lows, banks have in general profited from rising net interest margins (NIMs). However, if policy makers switch swiftly into cutting mode, banks may see the opposite effect. For now, futures markets predict the start of that process toward the end of 2024. In that context, the question facing risk managers is how they can retain the benefit of higher rates while preparing for cuts and managing the potential for macroeconomic surprises.

The volatility playing out in rates markets is reflected in bank deposit trends, with customers more actively managing their cash to make the most of shifting monetary conditions. In Europe, deposits reached 63 percent of available stable funding (ASF) in 2023, compared with 57 percent in 2021. 1 Monitoring of liquidity coverage ratio and net stable funding ratio implementation in the EU – third report, European Banking Authority, June 15, 2023. In the US, conversely, the share of deposits over total liabilities fell over a similar period as money migrated to investments such as money market funds.

In the face of accelerating deposit flows, McKinsey research shows that bank risk management and funding performance has been highly variable. Between 2021 and 2023, the best-performing US and EU banks saw interest rate expenses rise 70 percent less than at the worst-performing banks (Exhibit 1). Among the drivers were better deposit and interest rate management.

Alongside the impacts of deposit flows, funding has come under pressure from other factors, including the steady withdrawal of pandemic-related central bank liquidity facilities. Meanwhile, innovations such as instant payments have motivated customers to make faster and larger transfers. These withdrawals can happen quickly and be fueled by social media, creating a powerful new species of risk.

In the context of a more uncertain environment, regulatory authorities are doubling down on oversight of the potential impacts of rate volatility—for example, by asking banks to mitigate the potential effects of rate normalization, increasing overall scrutiny, and demanding evidence of methodology upgrades. Among European supervisory priorities for 2024–26, banks are advised to sharpen their governance and strategic frameworks to strengthen asset and liability management (ALM) and develop new funding plans and contingency measures for short-term liquidity shocks, including evaluating the adequacy of assumptions supporting some behavioral models. 2 “SSM Supervisory Priorities, 2024-2026,” in Supervisory priorities and assessment of risks and vulnerabilities , European Central Bank, 2023. In the same vein, the Basel Committee on Banking Supervision in 2023 proposed a recalibration of shocks for interest rate risk in the banking book. Banks can achieve this by extending the time series used in model calibration from the current December 2015 standard to December 2022, bringing more volatile rate distributions into the equation.

In a recent McKinsey roundtable, 40 percent of Europe, Middle East, and Africa bank treasurers said the topic that will attract most regulatory attention in the coming period is liquidity risk, followed by capital risk and interest rate risk in the banking book (IRRBB). With these risks in mind, 34 percent of treasurers said their top priorities with respect to rate risk were enhancing models and analytics, revising pricing strategies on loans and deposits, and beefing up ALM governance and monitoring capabilities.

Most participants also expected treasury teams to get more involved in strategic planning and board engagement and to engage business units more closely to define pricing strategies and product innovation (Exhibit 2).

In response to these dynamics, we expect to see many banks revisiting the role of the treasury function in the months ahead. For many, this will mean moving away from approaches designed for the low-rate era and toward those predicated on uncertainty. In this article, we discuss how forward-looking banks are redesigning their treasury functions to obtain deeper insights into probabilities around interest rates and their impacts on pricing, customer behavior, deposits, and liquidity.

Five steps to enhancing the treasury function

To manage volatile interest rates more effectively, leading banks are revisiting practices in the treasury function that evolved during the low-interest-rate period and may no longer be fit for purpose—or at least should be updated for the new environment. Pioneers have taken steps in five broad focus areas: steering and monitoring, risk measurement and capabilities, stress testing, bank funding, and hedging.

Build efficiency and sophistication

A precondition of effective oversight of interest rate business is to ensure decision makers have a clear view of the current state of play. Currently, the standard approach across the industry is somewhat passive, meaning it is based on static or seldom-reviewed pricing and risk management decisions, often taken by relationship managers. Models are fed with low-frequency data, and banks use static fund transfer pricing (FTP) to calculate net interest margins. Monitoring often reflects regulatory timelines rather than the desire to optimize decision making.

Forward-looking banks are tackling these challenges through a more hands-on approach to steering and monitoring, including the following measures:

dynamic reviews of FTP, reflecting microsegment behaviors and pricing strategies tied to customer lifetime value and the opportunity cost of liquidity
increased product innovation to boost funding from both corporate and retail clients
ensuring access to high-quality, frequent, and granular data, with systems equipped to send early warning signals on potential changes in customer behaviors, especially to capture early signs of liquidity shifts
use of risk limits and targets as active steering mechanisms, bolstered by links to incentives
automation of reporting and monitoring, so liquidity and other events can be scaled internally much faster, backed by real-time data where possible

Upgrade IRRBB measurement and capabilities

Leading banks are getting a grip on IRRBB risk in areas such as balance sheet management, pricing, and collateral. Many have assembled dedicated teams to help them make more effective decisions. Given the threat to deposits, some are making greater use of scenario-based frameworks, bringing together liquidity and interest rate risk management. They are using real-time data to inform funding and pricing decisions.

To ensure they consider all aspects of rate risk, leading banks employ a cascade of models, feeding the outputs into steering and stress-testing frameworks, and capturing behavioral indicators that can inform balance sheet planning and hedging activities. Some banks are employing behavioral models to forecast loan acceptance rates and credit line drawings. Best practice involves using statistical grids differentiated by type of customer, product, and process phase.

When it comes to loans, some banks are leveraging AI to predict prepayments and their impacts on balance sheets and hedging requirements. Best practice in prepayments modeling is to move away from linear models and toward machine learning algorithms such as random forests to consider nonlinear relationships (for instance, between prepayments and interest rate variation) and loan features (for example, embedded options), as well as behavioral factors. We see five key steps:

Customer segmentation . Banks can use AI to achieve granulated segmentation—for example, incorporating behavioral factors.
Prepayment behavior . Banks can quantify constant prepayments and prepayments subject to criteria including interest rate levels, prepayment penalties, age of mortgage, and borrower characteristics. Leading banks establish a parent model and leverage customer segmentation to derive dedicated prepayment functions, taking into account customer protections such as statutory payment holidays.
Interest rate scenarios . Banks can employ Monte Carlo simulations and other models to analyze a range of scenarios, including extreme and regulatory scenarios, and simulate potential prepayment behaviors for each scenario.
Hedging ratios and strategy . Decision makers should evaluate the value of mortgages under different interest scenarios and derive sensitivities to economic value and P&L. They can then select hedging instruments with the aim of neutralizing scenario impacts.
Pricing . Mortgage pricing can be adjusted based on maturity and potential prepayment behavior. Banks can use fund transfer pricing, with risks handled by a dedicated team in the treasury function.

Another important focus area is deposit decay. Many banks still prioritize moving-average approaches segmented by maturity and backed by expert judgment. A best practice would be to identify a core balance through a combined expert and statistical approach, looking at trends across customer segmentation, core balance modeling, deposit volume modeling, deposit beta and pass-through rates, and replicating portfolio/hedge strategies. This would mean leveraging AI and high-frequency data relating to transactions, to estimate each account’s non-operational liquidity, which customers may be more likely to move elsewhere (see sidebar “Case study: Deposit modeling to limit deposit erosion”). Some banks also use survival models to gauge non-linearities in deposit behaviors.

Case study: Deposit modeling to limit deposit erosion

One bank achieved an equivalent of €150 million to €200 million positive P&L impact on €30 billion of deposits by using AI techniques for repricing. The tool provided transparency on the following measures:

the amount of liquidity at risk for each client—that is, the excess liquidity the client could potentially invest or move freely to other banks
the churn probability for each client, or the probability the client would move the liquidity if the bank took no action, based on client sophistication, the quality and intensity of the client’s relationship with the bank, and the level of market competition
the customer value at risk, an estimate of future revenues that would be at risk if the client moved the liquidity elsewhere (for example, including not only the opportunity cost of funding, but also revenues from related services)

Armed with this transparency, the bank was able to formulate client-specific strategies for repricing actions and product offerings (for example, investment products and transaction banking services), optimizing both its funding sources and profitability. New capabilities to support the effort included a deposits command center, producing a real-time dashboard for monitoring, including early warning triggers, sales team mobilization, and new product offering, especially for cash-rich corporate clients.

In the context of IRRBB strategy, leading banks are keeping a close eye on both deposit beta and pass-through rates (the portion of a change in the benchmark rate that is passed on to the deposit rate). They back their judgments with views on client stickiness, which they traditionally arrive at through expert judgment and market research. A more advanced approach is to derive regime-based elasticities, capturing data from historical economic cycles.

Better modeling enables more resilience: One bank’s story

A European global bank wanted to improve its forecasting in a rising-interest-rate context. Managers decided to focus more on customer behavior. They moved away from expert-judgment buffers to AI and stochastic modeling and a more focused approach to model calibration. They also updated scenario planning based on regulatory guidelines and best-in-class approaches, such as an interest rate risk in the banking book (IRRBB) dynamic balance sheet methodology. Through these changes, the bank was able to estimate its duration gap (between assets and liabilities) more accurately and thereby reduce delta economic value of equity (EVE). As a result, the bank recorded a 70-basis-point uplift in return on equity, resulting from capital savings on interest rate risk and a direct P&L impact from reduced hedging.

Finally, risks need to be optimally matched with hedges. The recent trend is to use stochastic models to support hedging decisions, enabling banks to gauge non-linearities. Forward-looking banks increasingly integrate deposit, prepayment, and pipeline modeling directly into their hedging strategies. They also ensure model risk is closely monitored, with models recalibrated frequently to reduce reliance on expert input (see sidebar “Better modeling enables more resilience: One bank’s story”).

Improve stress testing

Several players are integrating interest rate risk, credit spread risk, liquidity risk, and funding concentration risk in both regulatory and internal stress tests. Indeed, the IRRBB, liquidity risk, and market risk (credit spread risk in the banking book, or CSRBB) highlight the trade-off between capital and liquidity regulations. In short, higher capital requirements may reduce the need for excessive liquidity, and vice versa, for a bank with stable funding—a situation that remains a challenge to current regulatory frameworks.

Stress testing to measure interest rate risk is also evolving, with some banks adopting reverse stress testing (see sidebar “Enhancing Basel's interest rate risk measures: Exploring the efficacy of reverse stress testing and VAR”).

Enhancing Basel’s interest rate risk measures: Exploring the efficacy of reverse stress testing and VAR

Research conducted by a group of bank risk managers suggests that the current supervisory outlier tests for interest rate risk in the banking book (IRRBB) may not adequately address all significant risk scenarios. Specifically, the scenarios outlined in the BCBS 368 guidelines for stress-testing economic value of equity (EVE) and net interest income (NII) may fall short in identifying substantial IRRBB risks. This oversight could make it more difficult for banks to recognize material risks of loss, especially if they have complex or unconventional portfolios.

To identify more material risks, experts are recommending a shift in approach. Instead of focusing solely on extreme and plausible scenarios, they are advised to consider all possible scenarios and integrate reverse stress testing. This would involve simulating thousands of historical and hypothetical scenarios, covering almost the entire spectrum of possible yield curves. After computing NII and EVE, attention would be directed to the scenarios that could have the most adverse impact on the bank's balance sheet.

In alignment with this proposed methodology, Australian banks will be mandated from 2025 to calculate IRRBB capital using measures of expected shortfall rather than value at risk (VAR). The change is intended to incorporate tail risk, with the new methodology utilizing data from the past seven years, coupled with a distinct one-year stress period.

In upgrading their stress-testing frameworks and interest rate strategies, banks need to balance net interest income (NII) and economic value of equity (EVE) risks that may materialize as a function of rate volatility. On NII, banks can productively apply scenario-based yield curve analysis across regulatory, market, and bank-specific variables and weigh these in the context of overall balance sheet exposures, hedges, and factors including deposits, prepayments, and committed credit lines. Additional economic risks include basis risk, option risk, and credit spread risk, which also should be measured.

Tailor planning

Bank funding plans are often generic, periodic, and spread across different frameworks and methodologies, including funding plans, capital plans, internal capital adequacy assessment processes (ICAAP), and internal liquidity adequacy assessment processes (ILAAP). They are often designed for a range of purposes and audiences and updated only when prompted by regulatory requirements. In future, banks will need dynamic, diversified, and granular funding plans—for example, tailored to products and regions. The plans should reflect flexible and contingent funding sources, central bank policies, and the trade-off between risks and costs.

Embrace dynamic hedging strategies

In the era of low rates, hedging of interest rate risk was a less prominent activity. Banks often employed simple, static, short-term, or isolated strategies, mostly aimed at protecting P&L. Few banks paid a great deal of attention to collateral management.

Now, in a more volatile rate environment, the potential for losses is much higher, suggesting banks need more sophisticated, agile, and frequent hedging to respond to shifts in interest rates, credit spreads, and customer deposit behaviors (Exhibit 3). Indeed, in 2023, the traded volume of euro-denominated interest rate derivatives increased by 3.4 times compared with 2020, according to the International Swaps and Derivatives Association. 3 “Interest rate derivatives US: Transaction data,” ISDA.

Hedging strategies are evolving to be dynamic, horizontally integrated across the organization, and wedded to risk appetite frameworks, so banks can balance P&L priorities and reductions in tail risk. On the ground, banks will likely need to recalibrate their strategies frequently, ideally leveraging a comprehensive scenario-based approach to reflect changes in the external environment. Many, for example, have already revisited hedging to reflect higher rates, but as rates fall, they will need to assess factors such as the impact of convexity on short positions. The objective of these exercises would ideally extend beyond risk mitigation to the optimization of NII (see sidebar “Replication and hedging: The upsides of NIM optimization”).

Replication and hedging: The upsides of NIM optimization

Broadly, banks may consider four approaches to replication and hedging, each of which offers benefits that will vary according to the bank’s unique asset base.

Static replication is a widely applied and robust approach that involves derivation and adjustment of cash flows from deposit volume models for deposit rate elasticity and pass-through rates. The remainder of cash flows are replicated with bonds, interest rate swaps, or loans. Future deposit growth can be incorporated if desired.

Dynamic hedging of present value of net interest margin (NIM) treats the deposit portfolio like a structured product. Banks calculate the present value of NIM arising from deposits, enabling derivation of present value sensitivity to changes in interest rates. The method supports dynamic hedging and can take into account negative convexity.

Static NIM optimization provides the recommended trade-off between granularity and sophistication on the one hand and usability on the other, and it is our preferred approach. It involves design of the fixed-income portfolio to replicate deposit balance dynamics over a sample period. The analyst then selects the portfolio yielding the most stable margin, represented by minimization of margin standard deviation of the spread between the portfolio return and deposit rate. The approach enables NIM maximization, with the caveat that shorter tenors tend to be preferred in periods of low benchmark rates.

Dynamic NIM optimization permits banks to model future interest rates with NIM and investment strategy optimized for a future horizon. Again, NIM can be maximized, but the approach requires assumptions on volume growth, and the optimization horizon may not extend to the full rate cycle.

A key principle of best-in-class hedging strategy is that a proactive, forward-looking approach tends to work best and will enable banks to hedge more points on the yield curve. And with forward-looking scenario analysis, they should be able to anticipate risks more effectively. Consider the case of a bank that was exposed to falling interest rates and did not meet the regulatory threshold for outliers under the new IRRBB rules for changes in NII. Through analysis of potential client migrations to other products and a push to help clients make those transfers, combined with a new multi-billion-dollar derivative hedging strategy, the bank brought itself within the threshold.

Banks should not view hedging as a stand-alone activity but rather as integrated with risk management, backed by investment in talent and education to ensure teams choose the right hedges for the right situation. These may be traditional interest rate derivatives but equally could be options or swaptions to bring more flexibility to the hedging strategy. AI will be table stakes to support decision making and identify risks before they materialize. A more automated approach to data analytics will likely be required. And collateral management should be a core element of hedging frameworks, with analytics employed to forecast collateral valuations and needs, optimize liquidity reserves, and mitigate margin call risk.

Next steps: Making change happen

To effectively implement change across the activities highlighted here, best practice would be to bring together modeling capabilities under a dedicated data strategy. The target state should be comprehensive capabilities, a unified and actionable scenario-based framework, and routine use of AI techniques and behavioral data for decisions around pricing and collateral. Most likely, a talent strategy also will be required to support capability building across analytics, trading, finance, pricing, and risk management.

Banks must marshal a broad range of market data to support effective modeling. The data will include all credit lines, including both on–balance sheet and off–balance sheet items, deposit lines, fixed-income assets and liabilities, capital items, and other items on the banking book. Ideally, banks would assemble 15 to 20 years of data, which would take in the previous period of rising interest rates from 2004 to 2007. Alongside these basic resources, banks need information on historical residual balances, amortization plans, optionality, currencies, indexing, counterparty information, behavioral insights, and a full set of macro data. Some cutting-edge models incorporate about 150 different features.

Armed with comprehensive data, banks can build behavioral models (for example, prepayments, deposits) to estimate parameters and infer behavioral effects in different scenarios. They can then integrate behavioral outputs into stress-testing simulations, alongside expert-based insights. Once macroeconomic data has been inputted, banks should be able to compute delta NII and EVE for three years. Visualization tools and hedging replica analysis can help teams clarify their insights and test their hedging strategies across risk factors.

Banks that have embraced the levers discussed here have set themselves on a course to more proactive and effective interest rate risk management. Through a sharper focus on high-quality data and the use of AI and scenario-based frameworks, banks have shown they can make better decisions, upgrade their hedging capabilities, optimize the cost of funding, and ensure they stay within regulatory thresholds. In short, they will be equipped to respond faster and more flexibly as interest rates enter a new era of volatility.

Andreas Bohn is a partner in McKinsey’s Frankfurt office, Sebastian Schneider is a senior partner in the Munich office, Enrique Briega is a knowledge expert in the Madrid office, and Mario Nargi is an associate partner in the Milan office.

The authors wish to thank Gonzalo Oliveira and Stefano Terra for their contributions to this article.

Explore a career with us

The changing landscape for banks

A multilayered puzzle with numerous labyrinth balls maneuvering through ever-shifting, multi-colored mazes, symbolizing the overarching theme of a significant transition.

Global Banking Annual Review 2023: The Great Banking Transition

Forward Thinking on the rollercoaster of central banking with Hans-Helmut Kotz

Essay on Banking

Banking is a very powerful instrument of social change. Banks are playing a crucial role in bridging the gap between the rich and the poor. In fact, banking is the backbone of the modern economy. It is difficult to visualize how trade, commerce or business can be conducted without an efficient banking system.

Banking had been in existence even in earliest times, though in other forms. In India, as in other countries, there were money-lenders who charged very heavy rates of interest. The money lenders did not have the welfare of the people at heart.

They only wanted to fill their own pockets and never missed an opportunity to exploit the poor and the needy. There was nobody to check these malpractices. People condemned the money lenders, but they could not do much. They felt helpless once they were caught in the vicious net of the money-lender.

The modern banking system has no scope for this kind of exploitation Before nationalisation, banks were catering to the needs of only a small section of people belonging to the upper strata of society. In rural areas, the needy until quite recently had no choice but to go to the money lender and take loans on his terms. So the benefits of modern banking did not reach the poor.

Six more banks were nationalised in April 1980 Some of the objectives of the public sector banks were: (a) to mobilise savings of people to the largest possible extent and utilise these for productive purposes, (b) legitimate credit needs of the private sector, (c) to acutely foster opportunities for helping neglected and backward areas of the country, (d) curb, use of bank credit for speculative and unproductive purposes.

The philosophy behind nationalisation of banks was that they should function as an instrument for promoting economic and social development in more purposive manner. As against 8262 branches at the end of June 1969, the number of branches at the end of 1992 was more than 60,000.

The thrust of expansion policy has improved the availability of banking facilities in rural areas. They have started extending loans at concessional rates of interest to small farmers, entrepreneurs, artisans, labourers and members of ST and SC. Lead Bank scheme was also introduced in 1969.

Unfortunately, the expectations of the policy makers and the people have not been fulfilled. Since the nationalisation of banks, there has been a slow deterioration in their services.

EssayBanyan.com – Collections of Essay for Students of all Class in English

Essay on Bank

All of us have seen a bank and most probably have also visited them. But very few of us know about their types and all of their functions. I have brought these essays containing all the details about a bank and will also help you in wiring your essays.

Short and Long Essays on Bank in English

Essay on Bank for students of class 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and class 12 in English in 100, 150, 200, 250, 300, 500 words. Also find short Bank essay 10 lines.

Bank Essay 10 Lines (100 – 150 Words)

1) Banks are the place where people keep their money.

2) Works related to money like loans, transactions, etc are done in banks.

3) In 16 th to 19 th centuries, modern banks came into existence.

4) Banks keep our money, ornaments, important papers, etc safe.

5) The loan facility of banks provides great help to the people.

6) There are many government and private banks in India.

7) In India all the banks are controlled and managed by the Reserve Bank of India (RBI).

8) Banking sector employs a huge population.

9) The first bank of India was the Bank of Calcutta which was later named as State Bank of India.

10) Today internet and technology have made banking easier.

Essay 1 (250 Words) – Bank

Introduction

Banks are the places where we keep our money or do all our money-related work. Either it is getting a loan or something else. This type of place has been addressed as a bank. Although the word has various meanings, all of them mean the same. It is a place where you feel relaxed. When we are in pressure or have to solve some money-related problems we visit a bank.

How Banks Came into Existence

The existence of a bank was seen for the first time in Mesopotamia in 8000 BC. The evidence of bank and temples were seen in this civilization. These banks were not made for lending money because the money came afterword. These banks were made for lending seeds and agricultural stuff. They also used to keep records of trading.

Modern banking came into existence between the 17th to 19th centuries. It is said that Goldsmiths were the first bankers and they use to lend money to people and people use to keep their valuable things near goldsmiths.

The first-ever bank which offered bank noted was the Bank of England. It further developed and today we have well-established banks. We also have ATMs and Credit cards, etc. All these things have made banking easy.

Everything established in this world slowly. Either it was a man or a bank. Things develop and progress as per time. Today things seem so simple to us but they were not so simple and easy years before. A bank is one of the best examples which show development and change in society.

Essay 2 (400 Words) – Bank and Its Importance

Banks are denoted as one of the most important pillars of our economy. People keep their savings in these banks and this helps our nation to progress. Banks help people in various ways; they lend money for different work. Like if you have to buy a house, a car, even a laptop, banks give us money on certain interests and we can easily pay it in different instalments. Apart from this, there are many more uses of a bank.

Importance of Banks

Banks are important and useful in many ways and I have mentioned some of the most important uses below;

Provides Safety

We feel safe when we keep our money in a bank. Not only money people also keep other valuable things in banks like ornaments, important papers, etc. They provide overall security and many of our parents really feel thankful that they can safely keep their money somewhere. It will be not wrong if I say that we sleep peacefully because we have banks to protect us.

Saves our Money

It is a human tendency that if we have money in our pocket, we will definitely spend it. Whereas if they are in a bank, we feel a bit lazy to use and also banks provide interesting profits and sometimes they also double your money in some schemes. This saves our money and we develop a good bank balance.

Develops Employment

There are more than thousands of employees working in a particular bank and there are 34 banks and all of them have more than 3 branches in a particular city. They are also available in villages, really one of the hottest sectors which provide employment. Many of us just love to be a part of a bank because it is a reputed job.

Provides Loan Facilities

It was a time when people use to help each other and families use to do everything for their near and dear ones. But time has changed how people live in nuclear families and they do not have many contacts. People in cities hail from different places as a result they won’t trust. Then who will help you financially, who will trust you and give you some money when you need it. It is a bank which provides loan and helps you financially.

Banks are important parts of our life and have become very necessary for us. We can’t imagine a society without a bank. We can’t trust others, but we can trust a bank and they are our true friends who never ditch us and also protect our money.

Essay 3 (500 – 600 Words) – Types of Banks

We go to school for education, we visit a temple for prayer similarly there is a place where we visit to solve our money-related problems. We save our money, valuable things and also get a loan. A one-stop solution for all types of money related problems. There are many banks in India and some of them are government whereas some of them are private. All of them do the same job and help people in different ways.

The First Bank

Banca Monte dei Paschi di Siena or Berenberg Bank holds the credit of the world’s oldest bank and it was established in the year 1624.

Whereas Bank of Calcutta was the first bank of India established in the year 1806. The name was further changed as Bank of Bengal and also today known as SBI.

Types of Banks:

Banks are of different types some help people in their agricultural problems whereas some help us in our day-to-day problems. I have defined them below;

Central Banks

Banks that are controlled by legislative bodies are central banks. It can be a central bank or reserve bank. We can also state them as the main bank which decides the interest rates as per inflation in the country. They are not only a bank but they also keep an eye on other banks and controls the overall money supply. They also take care of any kind of foreign exchange as well as government bonds. We can call them as the head of all banks.

Commercial Banks

A bank, that is, specially designed for the development of business. They provide loans and some business benefiting offers. They especially support middle to big size business.

Retail Banks

Another name of Retail bank is consumer bank; these banks provide all kinds of facilities to costumers. They won’t lend money to companies or other institutions. People save their money in these banks and they have their easy access to their accounts. They can take or deposit money whenever they want. They provide credit cards, debit cards, ATM facilities, etc to the customer.

Private Banks

Private Banks are also banks having people with personal profits. They provide all facilities like other retail banks just they are not authorized by government agencies. Although the government has an eye on every bank they have very few shares owned by government sectors.

Online Banks

Online banking or internet banking is one of the most convenient forms of banking. They are easily available where ever you want on your fingertips. It is also termed as virtual banking and is a branch of banking. Digital transactions are specially used in this mode of banking and it is most popular these days.

Savings Bank

That bank where we simply deposit our money and they provide us with some interest in our money is saving bank.

Regional Rural Bank

These banks are specially designed for people living in rural areas. They are commercial banks but they are operated at the regional level. They provide all kinds of financial facilities to people living in that area and work for their betterment.

Banks are the basic structures of our economy; they are very helpful in developing a nation. They secure our money and also invest that money in other sectors and generate new income. Really banks are very important and they also help normal people in developing a new business or even buying a house. They have multiple uses and they are available everywhere. We can easily find ATMs and have our money whenever needed.

FAQs: Frequently Asked Questions

Ans . There are 12 public sector banks in India after the merge of smaller banks into larger ones.

Ans . The State Bank of India is the largest public sector bank in India.

Ans . IndusInd Bank, originated in 1994, is the India’s first private bank.

Ans . The ICICI bank is now partnered with PhonePe for UPI transactions.

Ans . The first governor of Reserve Bank of India was Osborne Smith.

Ans . The ICICI bank has recently started the Whatsapp banking services.

Ans . The best bank in India is HDFC bank.

Essay on digital india, cashless india essay, essay on child is father of the man, essay on causes, effects and prevention of corona virus, essay on dr. sarvepalli radhakrishnan, durga puja essay, essay on summer vacation, essay on my plans for summer vacation, essay on holiday, leave a comment cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Home / Essay Samples / Economics / Bank / Reflections on My Career in Banking: Lessons and Challenges

Reflections on My Career in Banking: Lessons and Challenges

Category: Economics , Life
Topic: Bank , Banking , Personal Experience

Pages: 2 (726 words)

Downloads: -->

--> ⚠️ Remember: This essay was written and uploaded by an--> click here.

Found a great essay sample but want a unique one?

are ready to help you with your essay

You won’t be charged yet!

Honor Essays

Empathy Essays

Adversity Essays

Humanity Essays

Gratitude Essays

Related Essays

We are glad that you like it, but you cannot copy from our website. Just insert your email and this sample will be sent to you.

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Your essay sample has been sent.

In fact, there is a way to get an original essay! Turn to our writers and order a plagiarism-free paper.

samplius.com uses cookies to offer you the best service possible.By continuing we’ll assume you board with our cookie policy .--> -->

Essay on Banking Sector

100 Words Essay on Banking Sector

Types of Banks

Importance of the Banking Sector

Challenges in the Banking Sector

Services Offered by Banks

Role of Banks in Economy

500 Words Essay on Banking Sector

Roles of the Banking Sector

Banking Sector and Technology

Leave a Reply Cancel reply

Achievers Corner

Mains & Interview

Current Affairs

Drishti Specials

Study Material

Test Series

Indian Economy

Banking Sector: Opportunities and Challenges

How have Indian Banks Evolved over the Years?

What is the Current Status of the Indian Banking Regime?

What Obstacles Lie Ahead for the Indian Banking Sector?

How Can the Indian Banking Sector be Fortified Moving Ahead?

Conclusion

UPSC Civil Services Examination, Previous Year Question (PYQ)

Mains

Banking In India Essay | Essay on Banking In India for Students and Children in English

Long and Short Essays on Banking In India for Kids and Students in English

Long Essay on Banking In India 500 Words in English

Short Essay on Banking In India 350 Words in English

Banking In India Essay Word Meanings for Simple Understanding

Essay On Bank

Short Essay On Bank

Long Essay On Bank

Introduction to Banking

Types of Banks

Functions of a Bank

Advantages and Disadvantages of Banking

Regulations in the Banking Sector

The Future of Banking

Related Posts

Role Of Banks Financial Institutions In Economic Growth Economics Essay

Cite This Work

DMCA / Removal Request

Change Region / Country

Essay on Bank

Meaning of Bank

Functions of Bank

How Important are Banks for Development?

Leave a Comment Cancel reply

Register with BYJU'S & Download Free PDFs

Flagship Publications

IMF reports and publications by country

For Journalists

Press Center

Finance & Development Magazine

Banks: At the Heart of the Matter

BACK TO BASICS COMPILATION

Making loans

Creating money

Transmitting monetary policy

The need for regulation

You might also like

Latest Issues

December 2023

September 2023

Social Media

F&D STAFF

350 Banking Essay Topic Ideas & Examples

Financial Sector: Definition, Examples, Importance to Economy

What Is the Financial Sector?

Key Takeaways

Understanding the Financial Sector

Financial Sector Makeup

Investing in the Financial Sector

Special Considerations

Essay on Bank

Long and Short Essay on Bank in English

Bank Essay 1 (200 words)

Bank Essay 2 (300 words)