...Structural Change in the U.S. Banking Industry: The Role of Information Technology Sandra D. Cooke Economics and Statistics Administration Office of Policy Development Office of Business and Industrial Analysis June 1997 ESA/OPA 97-6 Structural Change in Banking: the Role of Information Technology Structural Change in Banking: the Role of Information Technology ABSTRACT Commercial bank investment in information technology (IT) equipment has grown rapidly, from $104 million in 1960 to more than $10 billion in 1994. These investments in “hard” technologies (computer hardware, software, telecommunications equipment, etc.) have been accompanied by increases in "soft" technologies, for example, complex financial innovations that were infeasible on a large scale without IT hardware. These developments, together with deregulation, are creating new competitors, new financial markets and instruments, and a new role for commercial banks as providers of financial services. This study documents how changes in information technology have affected the role of banks in financial markets and have influenced changes in the structure and performance of the U.S. banking industry. The analysis also covers new, fast-growing financial innovations linked to IT investment e.g., asset securitization and derivatives. IT’s effect on the banking industry has been positive. Increased competition has caused banks to lose traditional customers, but IT enabled the banks to offer new products, expand...
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...analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. In case of Axis Bank, according to us, the Porter’s Five Forces Stands as shown below: | Weak | Neutral | Strong | Fierce | Industry Rivalry | | | | | Supplier Bargaining Power | | | | | Buyer Bargaining Power | | | | | Threat Of New Entrant | | | | | Threats of Substitute | | | | | Industry Rivalry Industry rivalry means the intensity of competition among the existing competitors in the market. Intensity of rivalry depends on the number of competitors and their capabilities. In case of Axis bank, we have found that this particular parameter is fierce. Since March 2002, Bankex (Index tracking the performance of leading banking sector stocks) has grown at a compounded annual rate of about 31% as shown below. After a very successful decade, a new era seems to have started for the Indian Banking Industry. If we look at 5 years historical...
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...Sc. Vol-2 No. 1 March 2012 The Impact of Information and Communication Technology on Banks‟ Performance and Customer Service Delivery in the Banking Industry Alhaji Abubakar Aliyu, Rosmaini Bin HJ Tasmin Department of Technology Management Faculty of Technology Management, Business and Entrepreneurships Universiti Tun Hussein Onn Malaysia, 86400, Parit Raja, Batu Pahat, Darul Ta’zim, Johor, Malaysia hp090012@siswa.uthm.edu.my rosmaini@uthm.edu.my Abstract - Information and communication technology (ICT) has become the heart of banking sector, while banking industry is the heart of every robust economy. If it collapses so will the economy. This is absolutely evident from current recession in European banks crises, and in turn. The effect of globalization, competition and innovation in the banking industry by its providers to offer their services makes essential the understanding of how various aspects of consumer behaviour affect the innovation and respond to customer service delivery. Within this context this paper has considered a critical literature review of previous researchers with the objective to examine the impact of Information and Communication Technology on banks performance and customer service delivery. This paper also makes of a critical review of peer reviewed, scholarly and organizational literature regarding the impact of ICT on banks’ performance to examine if banks have successfully achieved effective customer’s service delivery, by providing high level...
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...01 Introduction : Small and medium-sized enterprises sometimes also called small and medium enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. These are the most common businesses found across most of the world’s economies. The World Bank Review on Small Business Activities establishes the commitment of the World Bank Group to the development of the small and medium enterprise (SME) sector as a core element in its strategy to foster economic growth, employment and poverty alleviation. In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered as a vital instrument for poverty alleviation and ensure the rapid industrialization. So we can say that the role of Small and Medium Enterprises (SMEs) is indispensable for overall economic development of a country particularly for developing countries like Bangladesh. It has drawn a lot of interest among policy makers, academics, businessmen and people in general. Government of Bangladesh has highlighted the importance of SME in the Industrial Policy-2005. SMEs have been identified by the Ministry of Industries as a ‘thrust sector’. As the SME sector is labor intensive, it can create more employment opportunities. For this reason government of Bangladesh has recognized SME as a poverty alleviation tool. As a result they will enhance the standard of living in rural areas. SMEs (Around the world) : Although the definition...
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...identify the types of such institutions; l describe the functions and objectives of Industrial Finance Corporation of India (IFCI) and State Financial Corporations (SFCs); l discuss the role and objectives of Industrial Development Bank of India (IDBI); l state the functions of IDBI; l Recall the meaning of ‘investment trust’; 56 :: Business Studies l discuss the objectives and function of Unit Trust of India (U.T.I.) ; l Explain the objectives of Industrial Credit and Investment Corporation of India (ICICI) ; l describe the functions of ICICI ; 20.3 Need for and importance of Specialised Financial Institutions (SFIs) SFIs are institutions set up mainly by the government for providing medium and long-term financial assistance to industry. As these institutions provide developmental finance, that is, finance for investment in fixed assets, they are also known as ‘development banks’ or ‘development financial institutions’. These institutions receive funds for their financing operations primarily from the government or other public institutions. These institutions also raise funds from the capital market. Need for SFIs The need for establishing SFIs arose mainly because of the following reasons:- 1. It was difficult for industry in general to procure sufficient longterm funds in the capital markets. There were no other...
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...------------------------------------------------- https://www.fresherslive.com/current-affairs ------------------------------------------------- Sectors[edit] Percent labor employment in India by its economic sectors (2010).[110] The GDP contribution of various sectors of Indian economy have evolved between 1951 to 2013, as its economy has diversified and developed. Historically, India has classified and tracked its economy and GDP as three sectors — agriculture, industry and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry and related activities. Industry includes various manufacturing sub-sectors. India's definition of services sector includes its construction, retail, software, IT, communications, hospitality, infrastructure operations, education, health care, banking and insurance, and many other economic activities.[111][112] Agriculture[edit] Rice fields near Puri, Odisha on East Coast Main articles: Agriculture in India, Forestry in India, Animal husbandry in India, Fishing in India and Natural resources in India India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP and employed 49% of the total workforce in 2014.[113] As the Indian economy has diversified and grown, agriculture's contribution to GDP has steadily declined from 1951 to 2011, yet it is still the largest employment source...
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...the products for sale directly to consumers (although rare) and to industries in the secondary sector. Primary sector industries include mining, agriculture, fishing, and the timber industry (Goodwin et al. 2014). The secondary sector then converts the outputs of the industry sector into products deemed suitable for consumption. Industries in the secondary sector include manufacturing industries (such as car manufactures, steel rollers and pharmaceutical industries) and processing industries (such as wine companies, soft drink companies and milling companies) (Goodwin et al. 2014). Then there is the tertiary sector that provides services to the primary and secondary sectors. Such services include marketing services, transport, consulting, education, finance and administration to mention just but a few (Goodwin et al. 2014). The management of physical and human resources differ from sector to sector and from industry to industry. Industries in the same sector may have similar or closely similar resource requirements. However, resource requirements largely depend on the activities of the business. The agriculture industry (generally the primary sector) is largely labour intensive (The World Bank 2003). This means that the sector is mainly dependent on human resource for its success. This is one of the reasons why developed countries are slowly abandoning the primary sector especially agriculture (The World Bank 2003). Instead, they prefer to import raw materials from...
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...order to establish the peculiar problems militating against their profitability and level of profitability. These problems were found to be availability of credit facility, infrastructures and bad or poor management. Keywords: Credit facility, forecast, infrastructure, management, profitability. Introduction The definition of small and medium enterprises (SMEs) varies from country to country, region to region and from agencies to agencies in today’s world. Loveman and Sengenberger (1990) recounted that, “Small enterprises” or “small and medium enterprises” are elusive concepts. They do in fact hide a large heterogeneity in the types of the firms. The Nigerian concepts of SMEs are somewhat divergent but the Central Bank of Nigeria agrees with the Small and Medium Industries and Equity Investment Scheme (SMIEIS) in their definition of a SME as any enterprise with a maximum asset base less than N200 million (equivalent of about $1.43 million) excluding land and working capital, and with the number of staff employed not less than 10 (otherwise...
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...GROWTH, EMPLOYMENT AND TRADE IN INDIA INTRODUCTION It is interesting and rewarding to study India as an economy that has evolved over a period of 65 years since its independence. The country has grown economy-wise and population-wise since 1950 and the major contributors to Gross Domestic Product (GDP) has gradually shifted from agricultural sector to the services sector. Widespread globalization of industries and liberalization of trade along with technological advancements have played an important role in adding to its growth. In terms of Purchasing Power Parity India took position as the world’s third largest economy in April 2014 replacing Japan proving to be one of the fastest growing economies of the world (“India displaces Japan,” 2014). For the purpose of clearly understanding the major contributors and policies to the effect India’s growth and development, I have conducted my research under the primary, secondary and tertiary sectors using graphs and figures to explain whenever required. The primary sector being Agriculture, the secondary sector being Industry and the tertiary sector being Services have also been analyzed to indicate the major trading partners of India. A sufficient period of time has been considered for the purpose of this assessment to provide good insight on the topic. The paper will also further discuss some of the recent policy measures taken to further improve the growth of India. MAJOR POLICY...
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...Institutional Financing of SME in Bangladesh [pic] [pic] TERM PAPER ON Institutional Financing of SME in Bangladesh Submitted By: ID- Program- BBA Premier University, Chittagong Submitted in partial fulfillment of the requirements for the Bachelor of Business Administration. Submitted To: Ms. Nilufar Sultana Lecturer, Dept. of Finance & Banking, Faculty of Business Studies, Premier University, Chittagong. DATE OF SUBMISSION: /09/2012 Letter of Transmittal Date: To Ms. Nilufar Sultana Faculty of Business Studies Premier University, Chittagong Sub: Letter of Transmitter on Term Paper Dear Madam, This is my pleasure to submit my term paper report on “Institutional financing of SME in Bangladesh” which I was assigned. It was a great opportunity for me to acquire knowledge and experience in respect of the functions, procedures and operational activity, other than my topic of study. I have concentrated my best efforts to achieve the objectives of the assignment study and hope my endeavor will serve the purpose. However, I will always be ready to provide any further clarification that you may require. Sincerely Yours, ID# Program: BBA Batch Number: 16 8th Semester Section: Major:...
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...Buying House | A Multinational Bank | | A Multinational Garments Industry | A Multinational Garments Industry | A N TEXTILE SERVICES | A new AMC | | | A reputed composite Knit project requires a Dyeing | | A reputed group of companies | A Reputed Group of Companies | | | | | | A well reputed garments fectory | | | | Abdul Monem Limited | Airtel Bangladesh Limited | | Akij Group | Alltex Spinning Limited | Amin Mohammad Group | Amtranet Group | | An Independent UK Clothing Company | | | ASA | | | | | | | Bashundhara Group | BASIC Bank Limited | Beximco Textiles Division | | BGMEA Institute of Fashion & Technology (BIFT) | Bio-Xin (Pvt) Limited | BRAC | Brandix Casualwear Bangladesh Limited | British American Tobacco Bangladesh. | BSRM Group of Companies | | | | | | DBL GROUP | | | | DEKKO Group | Delta Brac Housing Finance Corporation Ltd. | DOM-INNO Developments Ltd. | Eastern Housing Limited (EHL) | Fortnightly Ekpokkho | Fortuna Bangladesh | Greengroup | Greenland Group. | ICB Islamic Bank Ltd | Intramex Group | Jamuna Group | Libas Knitwear Ltd. | Libas Textile Ltd. | | M & J Group | M.M.Knitwear Ltd. | | | Madina Group of Companies | MAKS group | Marico Bangladesh Limited (MBL) | Meghna Group of Industries. |...
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...organizations, lack of appropriate marketing strategies etc. are the major hindrances to the development of the SMEs in Bangladesh. In order to overcome the problems researchers have tried to provide some recommendations for the developments of SMEs in Bangladesh based on sound reasoning. Background of the Assignment Small and Medium Enterprises (SMEs) act as a vital player for the economic growth, poverty alleviation and rapid industrialization of the developing countries like Bangladesh. SMEs are significant in underlying country’s economic growth, employment generation and accelerated industrialization. Government of Bangladesh has highlighted the importance of SME in the Industrial Policy-2005. SMEs have been identified by the Ministry of Industries as a ‘Thrust sector’. As the SME sector is labor intensive, it can create more employment opportunities. For this reason government of Bangladesh has recognized SME as a poverty alleviation tool. SMEs also foster the development of entrepreneurial...
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...Vietnam Population Mix: * The population is surpassed only by Indonesia as Southeast Asia's most heavily populated country. However, Vietnam is the region's most ethnically homogenous country with the Vietnamese making up about 90% of the population. * 85% of Vietnam's ethnic-minority population belongs to indigenous groups - the largest of which are Thai and Hmong - who have been settled in the mountainous regions of the country for many centuries. * About 3% of the population is ethnic Chinese living in the urban centers of the South. * With an estimate 2014 population of 90,493,352, it is the 13th largest populated country in the world with a growth rate of 1%. * Population density is 272.4/kmsqr. * Vietnam's median age increased from 18.2 years (1980) to 28.5 years (2010). Its life expectancy increased from 58.9 years in 1980-1985 to74.3 years in 2005-2010. China and Thailand have the highest old-age dependency ratio (11 in 2010) while that of Vietnam is around 9. Current median age is 29.2 years. * Vietnam’s population is rapid aging and is going to be a new challenge.44.8% of the population lies in the 25-54 years age category. * 31% of the total population is urbanized with a rate of change of 3.03%. Ratio Percentage: Total dependency ratio: 41.3% Youth dependency ratio : 31.9% Elderly dependency ratio: 9.4% Potential dependency ratio: 10.6(2014 EST.) Provinces of Vietnam: * Vietnam is divided into 58 provinces and 5 municipalities existing...
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...In 2011, Thailand’s exports account for more than 60% of its total GDP. Also in 2011, The World Bank has upgraded Thailand’s income categorization from a lower-middle income economy to an upper-middle economy. Thailand develops successfully over the last decade, with constant economic growth and strong poverty reduction. Due to well-developed infrastructure, open foreign investment policy, strong manufacturing industry, and principles of free trade. Thailand becomes one of the most resilient economies. The agricultural sector plays an important role in the economic development of Thailand. The Thai government has opened its market to international trade. During the 1980s, the agriculture used up nearly 70% of the employment. From 2003 to 2011, Thailand’s agricultural percentage of the GDP has increased from 10.3% up to 12.1 %, with a little decreasing both from 2006 to 2007 and from 2008 to 2009. Thailand’s agricultural development has started since 1960s when large amount of new land and unemployed labor became accessible. According to the Food and Agriculture Organization of the United Nations (FAO), Thailand was the second largest exporter of agricultural products among Asian countries in 2004, with a 27.1% share of world’s rice export. Due to numerous government policies, agriculture in Thailand has been growing prosperously. In 1966, the Thai government established the Bank for Agriculture and Agriculture Cooperatives, aiming to supply credit. In 1975, the central...
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...to stop the flow of foreign goods to any country. Only quality products can meet the challenges in global market. For meeting this situation SMEs need to upgrade their technological capabilities and production facilities in order to produce quality products at a competitive price. DEFINITION Small and medium enterprises or small and medium-sized enterprises (also: Small and Medium-sized Enterprises; acronym in the plural: SMEs; small and medium businesses or small and medium-sized businesses, acronym: SMBs; and variations thereof) are companies whose headcount or turnover falls below certain limits. Enterprises Fixed Capital Investment Employees Small ≤Tk.100,000 ≤50 Medium Tk.100 to 300 million 51-99 Regulations of Bangladesh Bank for Small Enterprises- Private entity with less than 60 employees for the Manufacturing Sector 30 employees for the Service Sector 20 employees for the Trade Sector Service Sector: Total Assets (excluding lands and buildings) between Tk.50, 000 and 3 million Trade Sector: Total Assets (excluding lands...
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