Articles on Banking

History of Modern Banking

Banking in old times was not the tightly monitored and tightly regulated business that it is today. Instead, earlier banking...

Central Banking in the United States

The United States is economically the most powerful nation in the world today. This is what makes the study of...

Functions of a Central Bank

The modern banking system is two tiered. This means that at the bottom there are commercial banks i.e. the banks...

Regulatory Role Performed By the Central Bank

The two tiered system puts the central bank in control of the commercial banks. Therefore, the government authorities have delegated...

How Reserve Requirements Work ?

Reserve requirements are one of the most important features of modern central banking. We hear about reserve requirements almost every...

Interbank Lending Markets and Repurchase Agreements

Banks have to lend money in accordance with the amount of reserves that they have on hand. However, there is...

Types of Products in Commercial Banking

Commercial banking has traditionally been the backbone of banking. Banking was created to funnel idle resources in households to productive...

How Credit Rating Works ?

It may seem like the banking business is about money. However, the banking business is really all about information. Until...

Technology and Banking Delivery Channels

Technology has touched every aspect of our lives in the recent years and banking has been no exception. Huge strides...

Intermediaries to a Credit Card Transaction

In the past couple of decades, banks have started providing a new type of product called the credit card. The...

Fee Based Banking Services

Banks earn their income in two parts. One type of income is generated by undertaking risk i.e. by lending their...

What Are Smart Cards and How are They Better than Credit Cards ?

Credit cards have become an increasingly important part of every consumer’s finances. Banks now have more credit card customers than...

Risks Faced By Banks

It is often said that profit is a reward for risk bearing. Nowhere is this truer than in the case...

Retail Banking : Demand Deposit Products

Deposits can be divided into two types. The first type is time deposits in which an account holder gives the...

Retail Banking: Time Deposit Products

In the previous article we studied that there are two types of deposits that banks use to fund their lending...

Multiplier Effect: How Fractional Reserve Banking Creates Money ?

The modern banking system is considerably different from what the average person believes it to be. Banks are not institutional...

Capital Adequacy Ratio – Meaning and its Importance

Banks in the modern world face an inherent risk of insolvency. Since the banks are so highly leveraged, there could...

Shadow Banking – Meaning, Functions, Advantages & Disadvantages

Banking is perhaps the most regulated industry on the planet. The movement of funds in and out of the banking...

Internet Only Banks

Concept of Internet Only Banks With the advent of internet banking, a large part of the services that are offered...

The ABC of Peer To Peer Credit

The financial world has not witnessed much innovation since the 2008 meltdown. This is because any innovation in this sector...

Rigging the LIBOR

The British banking regulator FSA has prosecuted Barclays for rigging the interest rates in the market. The regulator termed it...

Living in a Cashless Society

Our monetary system has undergone a sea of change in the past century. If our great grandfathers were to see...

Cashless Economy: Pros and Cons

Governments across the world have stepped up their fight against cash. Cash is being increasingly viewed as a curse that...

The Sinister Motive Behind Cashless Society

Cashless society is the latest buzzword in global finance. At the present moment, only 15% to 20% of the world’s...

The War on Cash

Governments all over the world are fighting a war on cash. It is a known fact that the governments do...

Asset Reconstruction Companies

The Indian banking system is reeling under a glut of Non Performing Assets (NPA’s). The unpaid debts of Indian corporations...

Lockbox Service Provided by Banks

What is a Lockbox ? Lockbox is an additional service provided by banks in the United States. This service allows...

Treasury Operations of Banks

Modern banks are huge entities employing thousands of people in their workforce. However, amongst the various departments present at banks,...

Hire Purchase Agreements

Buying Assets on Installments A hire purchase agreement is a particular type of agreement between a buyer and seller. The...

United States and the Curse of Predatory Lending

Predatory Lending, also colloquially known as loan sharking is a bad business model. This business has always been run by...

China’s Predatory Lending

The Chinese government has a bad reputation when it comes to finances. Most countries including the developed ones like the...

Fin Tech: The Future of Banking

It’s hard to read a newspaper and not see any Fintech company being mentioned. The Fintech revolution has taken center...

How Technology has been a Game Changer for the Banking and Financial Services Sectors

How Technology is a Game Changer for the BFSI Sector It would be an understatement to say that technology has...

The Mega Scam in the Indian Banking System

Indian banking sector is divided into two. There are public sector banks, and then there are private sector banks. The...

Privatization of India’s Public Sector Banks

The Indian banking sector is facing a crisis on an unprecedented scale. The problem becomes peculiar when more facts are...

Case Study of the Indian Banking and Financial Services Industry using Strategic Tools

Finance is like Oil to the Engine of the Indian Economy As finance is the grease and the oil that...

How dire is India’s bad debts problem and what you need to know about it

How Dire is the Bad Debts Problem in Indian Banks In recent months, the news reports about India’s bad debts...

Interest Rates and Their Effect on Small Businesses

Predicting future interest rate movements is not only important for traders who invest in financial markets. Instead, it is also...

Deutsche Bank: The Fall of a Giant

The European banking system has been in a bit of a crisis in the last few years. Major European banks...

Will The Fiat Money System Collapse?

In 1971, Richard Nixon single-handedly took the world off the gold standard. Ever since, many commentators have been of the...

Demystifying the Mysterious, Glamorous, and Demanding World of Investment Banking

The Lure of Investment Banking and Why is it so for Management Practitioners All aspiring management students as well as...

Indian Banking Sector: Inter-Creditor Pacts

The Indian banking sector has seen a sudden increase in the number of bad loans. Several of these bad loans...

Why Should Central Banks Be Independent?

Last month Donald Trump fueled a debate when he called the Fed “crazy.” Political accusations started flying all across the...

The Downfall of Chanda Kocchar – India’s Rockstar Woman CEO

The ICICI bank is the largest private sector bank in India. It was also famous for being one of the...

BB&T and Sun Trust Bank Merger

BBT and Sun Trust bank are both giant institutions in their own right. However, now since they have decided to...

The Deutsche Bank Commerzbank Merger

Deutsche Bank which, which was once a dominant German financial institution has now become extremely fragile. This German bank managed...

The Inherent Conflict of Interest in Interest Rates Determination

The global financial system is not perfect by any means. However, most of the imperfections seem to be minor. As...

The Problem with Postal Banking

Veteran American Senator Bernie Sanders, as well as Alexandria Ocasio-Cortez, who has now become the voice of the Democrats, are...

The Wells Fargo Auto Insurance Scandal

Wells Fargo is one of the largest banks in the United States. However, of late, it has also become one...

What is FinTech and How it Enables Banking and Financial Firms to Leverage Technology

What is FinTech and how is it a Game Changer for BFSI firms? Anybody with a passing curiosity about the...

The Silicon Valley Bank Collapse: Why Is It Important?

In the second week of March 2023, the Silicon Valley Bank, which is headquartered in Santa Clara California collapsed in...

Impact of the Fall of Silicon Valley Bank

The Silicon Valley Bank collapse has the potential to be a turning point in the way the modern financial system...

Rising Interest Rates: The Perfect Storm for The Silicon Valley Bank

Bank failures are complex events that are the result of many underlying factors. When the history of any bank failure...

Poor Risk Management at the Silicon Valley Bank

The entire world is still trying to grapple with the failure of the Silicon Valley Bank. The impact has been...

How Does The Failure of Silicon Valley Bank Affect Stakeholders

The fall of the Silicon Valley Bank happened very suddenly. The bank had gone from a healthy functioning bank to...

The Role of Bridge Banking in The Silicon Valley Bank Crisis

The Silicon Valley Bank ceased to exist when it was declared bankrupt after a bank run. At this point in...

Role of Social Media in The Silicon Valley Bank Run

Bank runs have been part of the banking industry for a long time. This is an unintended consequence of the...

Was The Silicon Valley Bank Bailed Out by the Government?

The current crisis at the Silicon Valley Bank is a stark reminder of the dark days of 2008. Just like...

Problems with Bank Term Funding Program (BTFP)

The Silicon Valley Bank crisis has prompted the Federal Reserve to evaluate its emergency funding program. The original emergency funding...

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Articles on Banking