Banking Services, its roles and risks involved ....

 

Customers trust is an important goodwill for a role of bank to sustain in the market place. People will deposit money when and only the customer trusts a bank which means they will get back money on whenever demanded or else on the date specified in case of fixed deposits. Banking is a business activity of accepting and protecting the customer’s money and then lending to the required customer’s with an intention to make the profit after calculating various types of risks involved. 

Now a days the role of banks comprises of various diversified services like Debit cards/Credit cards, Insurance, Safety lockers, Automated teller machine, Online fund transfer across the Countries. It is worth said that banking services plays a silent and crucial role in everyone life. The banks perform the financials by pool of deposits and underway into the investments through the risk conversion, hence maintain the economy engine of the Nations/Countries.

Banking business has given new ways for the growth of the World’s economy at a same time role of banks in the economic development and growth has gradually increased. The role of the banks looks straight forward of accepting money from the customers and then lending the same funds to the borrowers, banking activities have encouraged a lots of people towards the investments which in turn is a part of the countries economy growth. If the banking business was not available then the savings would sit idle in our lockers and any new business or any new ideas would not be in a position to raise the funds and even the common people wouldn’t have big dreams to complete.


As Bank capitals consist of earnings, debts, equities etc. and the difficult task in the business is how well bank can manage the risk and drive the business into profitable atmosphere. The risks manages by the bank are :

Credit risk : when the borrowers fails to make the payments as agreed.

Liquidity risk : when the securities or investments rather turned to grow slowly and cannot prevent to adjust loss rather quickly.

Market risk : when the investment portfolio turns to decrease with the change in the market factors.

Operational risk : when the risk from the business law penalty or capital penalty towards the loan borrowed companies.

Reputation risk : When the risk towards the trustworthiness of the banking business towards the customers.

Macroeconomic risk : when there is a change in regulation now and then towards the bank operations. 


Comments

Post a Comment

Popular posts from this blog

Friendship .... A bond of love and sacrifice

Image
  Friendship aka Dosti is a word with unlimited love , sacrifices , emotions sometimes cry and sometimes celebrate.  Friendship means familiar and liking of each other's mind . People who are friends talk to each other and spend time together. They trust one another and also help each other when they are in trouble or are hurt. Friends are people that can be looked up to and trusted. Usually friends have the similar interests. A friend is one who admires a person's skill and helps or encourages them to make the right choices and do not get into any trouble at all. The strength of the bond of friendship between the two people can be vary with each other. If the bond is very strong, they are called Best friends. This can usually be achieved by possessing the elements of friendship, by being kind, generous, loyal, honest and by having fun. With these qualities you can truly enjoy the bliss of friendship. There are expectations, demands and complaints in ...
Read more

cowin.gov.in - Vaccine Certificate for 1st and 2nd Dose

Image
  Every Individual who has got Covid-19 vaccination whether it is Covaxin or Covishield you will get Covid-19 Vaccination Certificate after that vaccination. The Cowin vaccination certificate is being given to the individual after the 1st dose and 2nd dose. Earlier it was seen that the individuals had registered for the first dose from a registered number and the same individual registered for the second dose from the another number. The Certificate Verification is an important in terms of valid proof for vaccination. It’s really important to download Covid-19 Vaccination certificate from cowin.gov.in. After getting the first dose of vaccination, you will be allotted with the provisional Covid Vaccine Certificate. Thus after getting  the second dose of Covishield or Covaxin, you will get the Final certificate of Covid-19. Many individuals who are still confused need to check the steps for Covid-19 Final Vaccination certificate verify for authentication.Free vaccine to above ...
Read more

Mobile Insurance : Where Security is a priority, not an option.

Image
  Mobile Security   is the protection of smart phones, tablets, and laptops from threats associated with wireless computing .  It has become increasingly important in mobile computing . More and more users and businesses man use smart phones to communicate, but also to plan and organize their users' work and also private life. Within the companies, these technologies are causing profound changes in the organization of information system and therefore they have become the source of new risks. Indeed, smart phones collect and compile an increasing amount of sensitive information to which access must be controlled to protect the privacy of the user and the intellectual property of the company. All smart phones, computers   are preferred as the targets of attacks. This is because these devices have family photos, pictures of loved ones, passwords, and many more. For attackers, these items are a digital passport to access everything they would need to ...
Read more