Abstract The paper discusses the effectiveness of corporate governance in banking and financial systems in Malawi, an African developing economy. The paper begins with a discussion on the history of Malawi combined with a short explanation of its economy and past laws affecting the banking industry. The banking industry in Malawi is then critiqued along with a general discussion of the manner in which banks operate and affect a country's economy. Next, the paper analyzes the larger financial institutions such as the World Bank and the International Monetary Fund in the context of Malawi's economy. In addition, the available literature on the topic is outlined, broken down into different sections. Furthermore, the paper assesses the effectiveness of corporate governance in Malawi's financial sector and proposes a study for future work. Finally, predicted results of the study are outlined, and well as recommendations for implementing and establishing better guidelines for corporate governance in Malawi's financial services and banking industry.
Outline:
Proposal
Introduction:
Corporate Governance in Malawi
Proposal Conclusion
An Overview of the Role of CommercialBanks Malawi's Financial Services & Banking System
Literature Review
Public Sector Management
Public Policy Formulation
Decentralization
Corporate Governance
Purpose of the Study & Methodology
Proposed Study Methodology
Conclusion
From the Paper "The effectiveness of corporate governance in Malawi's commercial banks is an important issue given the essential role banks play in the financial systems of developing economies and the widespread banking reforms that these economies have implemented. Although the subject of corporate governance in developing economies has recently received a lot of attention in the literature, the effectiveness of corporate governance of banks in Malawi has been almost ignored by researchers. In developed economies, the corporate governance of banks has only recently been discussed in the literature. In order to address this research deficiency, this paper discusses some of the key concepts and issues for the corporate governance of banks in Malawi that can be applied to other developing economies. In many developing economies, the issue of bank corporate governance is complicated by extensive political intervention in the operation of the banking system. Malawi is a low income country where economic development is a priority for a future stable economy. Economic development consists of capacity building, good governance and economic reform. Acquired skills cannot be utilized fully and institutions cannot operate efficiently without good governance; similarly, economic reform cannot be implemented properly without institutions that are functioning well ."
Abstract This paper discusses individual commercialbanks and how they service their customers. It analyzes the quality of banking services that a customer gets and how the services are provided to the customer. It describes the three main channels for banking today - through branches, through the internet and on telephone.
Table of Contents:
Introduction
Chapter I
How Internet Banking Has Grown In The Last Decades, Especially Regarding New Product Being Offered
Evolution of Internet Banking Present Status and Profile of E-Banking Offered By Banks Nature of Product Offered
Chapter II
The Operations of Banks In Different Areas: What Is The Contribution?
Effects of E-Banking on Banking Operations: What Is The Contribution of Internet Banking Toward The Business?
Chapter III
General Benefits of Banks From E-Business and Other Communication
Performance Measurement
Chapter IV
Reality of System Risks and Control
Conclusion
From the Paper "To understand the relationship that can develop between the Internet and banks, one has to first understand the nature of both these items. The first to be understood is the banks. So far as banks are concerned, at the beginning of the twenty-first century, central banking which is the source of all banking activity would appear to be at a crossroads in their future. Earlier it was the lender of last resort, active participant in stabilizing economic fluctuations, and now the present main function is being the guardian of price stability. As it is still the monetary authority, much is expected from them. At one stage, fiscal policy was considered to be the main instrument of economic policy, the situation changed to an ascendancy of monetary policy and that was noted by the late 1980s in most parts of the industrialized world. This had a lot of implications for the role of the central bank."
Abstract The following paper begins with a basic review of how commercialbanks make money. It then examines the definition of what constitutes a high performance in the banking world of finance. Finally, it assesses ways in which banks can achieve the maximum level high performance banking from a financial standpoint and examine the ways in which current public perceptions of banking and aspects of the new technology of Internet banking can affect the financial yield of banks.
From the Paper "Firstly, how do banks make money" A commercial bank (as opposed to, for instance, a credit union) has two basic functions: to accept deposits of money and to make loans. The main ways a commercial bank makes and creates funds is by making loans and by purchasing government bonds from the public sector. (McConnell and Brue 283-283) The goals of a commercial bank to remain "in business" must be twofold. One goal is that the bank must make a profit, the other goal is safety, which is traditionally defined to lie in liquidity?specifically, by the bank retaining such liquid assets as cash and excess reserves.?
Abstract This paper will take a detailed look at the development of banking in India in the post-Independence period, giving a special focus to commercialbanking. What it will try to do is develop the relation between capital formation and economic growth. It will argue that this has really only happened in the post-1991 period.
Abstract This paper examines the commercialbanking industry and presents the statistical facts of several financial services firms. The paper discusses Citigroup, Inc., Bank of America, J.P. Morgan Chase, Wachovia, and Wells Fargo. The paper describes how applications of new technology have radically transformed the financial services industry.
From the Paper "In 2003, Citigroup, Inc. was the world's largest financial services firm. It sold $94,713 million by December at annual growth rate of 2.3% (Caione 2004) and netted profits at $ 17,853 at an annual rate of 16.9%. With its numerous subsidiaries, Citigroup offers banking loans, asset management, insurance, investment bank and virtually every other retail and corporate financial service conceivable through its more than 3,000 bank branches and finance offices in the US and Canada and 1,500 other locations in close to 100 other countries worldwide (Caione)."
Abstract An examination of the entry of Canadian banks into the American banking market. The paper shows how their greatest competition remains the American commercialbanks, and shows how their attempt to enter the real estate market has succeeded. It shows how Canadian Banks already realize a healthy portion of the US real estate market and it is expected that this growth will continue into the future.
From the Paper "The Canadian economy has paralleled the US economy for the past year. Following the events of September 11, 2002, the Canadian economy and the US economy took dips and many on both sides of the border feared recession. However, these circumstances were short-lived and both economies quickly resumed their normal pattern. The US economy is strong and many Canadian Banks are poised to take advantage of eager investors in the United States. Many of these Banks have established a presence in New York City. One of the main reasons for this move is the strength of the US dollar. Foreign Banks used to have a competitive edge over American Banks, but legislation has evened the playing field. The chief competition for Canadian Banks operating in the US is, of course, other US Banks."
Abstract The overturning of the Glass-Steagall Act has spawned numerous discussions and debates concerning the resulting effects. This paper reviews literature aimed at explaining the effects the FSMA has had on the values of commercialbanks, investment banks, and thrifts, as well as the of effect of deregulation on corporate customers and the conflict of interest versus certification of value debates pertaining to commercialbanks operating in the securities market.
From the Paper "Studies done to date, in respect to the deregulation of commercial banks, are not sufficient and in some cases may have missed the boat. For instance, the study conducted by Czyrnik and Klein included thrift stocks (a variable of seemingly little importance) and excluded corporate customers. It would be interesting to see the results of a similar study concerning FSMA's effect on the value of corporations who use investment banks compared to those who use commercial banks for underwriting IPOs. A study of this nature would serve well to examine the possible effects of commercial banks tying investment banking to credit offerings. Another possibility for a future study would be to interview investors with question regarding their perceptions concerning conflict of interest or certification of value that may or may not attribute to commercial banks engaging in underwriting securities."
Abstract This paper examines how banks and credit unions function to identify commonalities and differences, followed by a summary of the research in the conclusion. The paper includes two appendices with several on-point graphs concerning credit union deposits and assets over the years, as well as a statistical table.
From the Paper "Capital plays a key role in all economic activities in both banks and credit unions. There are some differences between the two, but the distinctions are becoming less clear. The business of banking generally consists of borrowing and lending capital. As in other businesses, operations must be based on capital, but banks employ comparatively little of their own capital in relation to the total volume of their transactions. By contrast, credit unions use the capital of its own members to make loans within the membership. This paper will examine how banks and credit unions function to identify commonalities and differences, followed by a summary of the research in the conclusion."
Abstract This paper discusses the merger wave in retail and commercialbanking, covering the history of banking in the United States and leads into the merger wave of the last twenty years. This paper also discusses the basis for the merger wave, criticism thereof and what may lie ahead.
Contents:
Introduction
History of Banking in the United States
The Merger Wave
The Merger Wave; Reasons and Criticism?
Conclusion
From the Paper "While banking may date back to the early days of man the concept of branch banking in the United States dates back only several hundred years. If you were to look back at the history of banking in the United States you would find a long and winding road that started out with a general consensus against the branching we see today. Fact is like any other centralized structure in the early days of our great nation, a centralized bank was frowned upon. So what happened over time?"
This paper analyzes the Bank of America (BOA), incorporated in 1968 as a provider of financial services and products throughout the United States and in selected international markets.
Abstract This paper relates that, as of 2005, the Bank of America had $1.2 trillion in assets and approximately 175,000 full-time employees in 190 countries, managed through four business segments: 1) Consumer and commercialbanking; 2) asset management; 3) global corporate and investment banking and 4) equity investment. The author points out that the company's business model is based on recognizing its domestic and international consumers' needs and identifying more effective ways of delivering products and services to satisfy them, for which BOA has been an industry leader for years. The paper relates that the most glaring problem is the need for the company to concentrate on using its expertise in CRM (customer relationship management) to identify opportunities for improving its customer service in other countries where it is newly arrived and where the relationship between the country managers and its key executives remains formative. Many charts and graphs.
Table of Contents
Company Background
Company History
Milestones/Critical Events
Size, Markets, Market Share
Locations
Detailed Description of Business, Products and Services
Consumer and CommercialBanking Asset Management
Global Corporate and Investment Banking Equity Investments
Vision and Mission
Goals-Objectives-Strategies
Business Model
Company Performance
Management Characteristics
Bank of America Key Executives
SWOT & Analysis of Core Competencies, Capabilities, and Competitive Advantage
Strengths
Weaknesses
Opportunities
Threats
Direct Competitor Comparison
Major Issues / Problems
From the Paper "The term "bank" credit card is more accurately labeled a "universal" consumer card today, and this ubiquitous card was the brainchild of Bank of America. According to Robert D. Manning, the credit card as it exists today first emerged in 1958; the author notes that businesses stood to gain from this innovation for several reasons despite the added transaction costs. The universal bank credit card (1) offered a competitive alternative for consumers who shopped with proprietary retail credit cards, (2) lowered the merchants' costs for their own credit programs by reducing bookkeeping expenses, (3) eliminated cash-flow bottlenecks by reimbursing purchases within days, and (4) provided a path to a potentially large customer base that included all of Bank of America's clients. By the summer of 1958, Bank of America mailed out almost 100 million unsolicited credit cards."
Abstract In early-April 2000, HSBC Holdings PLC agreed to acquire a majority holding in Credit Commercial de France (CCF). The proposed merger of the two banking firms is analyzed in this paper. The analysis focuses on strategic choices made by HSBC in developing its acquisition strategy, motivations by both firms for the merger, a SWOT (strengths, weaknesses, opportunities, threats) analysis of the proposed merger, analysis of the proposed merger within the context of Porter's Five-Forces Model of Competitiveness and challenges that will be faced by HSBC in relation to differences in corporate cultures should the merger be completed.
From the Paper "A major motivation for HSBC to acquire CCF was to dilute the company's risk exposure in the Asian market (considered by HSBC management to be highly volatile) by increasing the company's presence in the European banking industry ("S&P Affirms HSBC Holdings Plc," 2000).
CCF, a successful but medium-sized company, has been a takeover target for larger financial institutions in Europe for more than a year. The suitors and their proposals, however, were not attractive to CCF management. Realizing that acquisition was probable sooner rather than later, CCF management was amenable to an acquisition proposal that addressed their own needs and those of CCF shareholders. The HSBC offer, which came as a surprise, met each of these requirements and has been recommended to CCF shareholders by the CCF board ("HSBC ?a Major Player in Europe,?" 2000). Job losses at CCF, as an example, are expected to be minimal in an HSBC-CCF merger."
Tags: Banque, Nationale, de, Paris, electronic, banking
From the Paper "Commercial Banks and Underwriting Securities
Introduction
Historically, banks in the US were relatively unregulated and control was exercised mainly by the states (Trescott, 1963). In contrast, in Europe and other developed lands, banking has been relatively centralized and controlled by the national government and/or was not a stable business, making big profits in boom times through speculation in land and industry, but often going bankrupt in recessions when "financial panics" force the calling in of loans because uneasy depositors wanted or needed to convert their savings into cash. The result invariably was a large contraction of the US money supply in the aggregate, which exacerbated any economic recession. Rural, small institutions, called "wildcat banks," were.."
Abstract This paper discusses the banking system and looks at how safe the banking system really is. The paper explores the laws that govern these institutions in order to see if they are stringent enough to protect most consumers who utilize the banking system today. The paper begins with a brief history of the banking sector, from ancient basic banks to the modern day corporate structures which are more common. The paper then examines each of the major banking laws in place supposedly for the protection of the consumers.
From the Paper "So if banking and finance laws have been passed to protect investors and bank customers, is the banking system safer? Maybe, but because your money is in their vaults, the banks may have a measure of undue influence over you that you?re not even aware exists. Undue influence is defined as ?the domination of one party by the other in order to influence their judgement.? (Granger) With undue influence, there is no specific incident or single threat that occurs. ?The common law developed the doctrine of duress to define the limits of legitimate persuasion...equity developed undue influence to extend the reach of the law to other unacceptable means of persuasion.?"
Abstract A paper that looks into the question of 'How money market fund disintermediated the commercialbank and thrift in the late 1970s. It uses three references.
Highlights the main reasons why membership in the Employee Federal Credit Union (EFCU) is shrinking and why individuals are opting for commercialbanking when credit unions offer loans at lower rates.
Abstract This research report addresses the main reasons why EFCU has encountered a decline in membership and what is prompting people to borrow from other financial bodies. In order to better understand these reasons, however, the paper first looks at why people are initially attracted to credit unions instead of commercialbanks and the principles that guide the growth of credit unions. The report is based on a survey of EFCU members, which was conducted through mailed questionnaires.
From the Paper "This has been a major setback for most federal credit unions including EFCU the number of its members has decreased and many existing members prefer commercial banks to meet their loan requirements. While the governmental regulations are certainly playing a dominant role in poor performance of credit unions in last few years, we must not forget how banking industry has persistently forced the government to develop such legislation. The worst part is that due to this persistent challenges, market share of credit unions came down to 12% in 1995 from 13% in 1980 while that of bans increased from 50 to 56% during these fifteen years."
