US economy leaping far ahead of the World crumbles and many banking institutions pack up overnight. The economists are stunned no one could peep through the curtains of corporate offices. What happened?
Bolstered by a strong economy and upward trends, the banking institutions fed the public on easily available loans under presumption that return is no big issue. It was! The country had begun facing the heat with most of the manufacturing moving to Asia, competition in service sector and competition from rising economy like India and China.
Bolstered by a strong economy and upward trends, the banking institutions fed the public on easily available loans under presumption that return is no big issue. It was! The country had begun facing the heat with most of the manufacturing moving to Asia, competition in service sector and competition from rising economy like India and China.
These factors have severely affected the developed World especially Europe. For the banking sector a new paradigm has to emerge in order to manage cash adequacy and mitigate risk factors. This means more regulatory norms and stringent compliance.
Capital Flow inwards is crucial for smaller banks to retain fund adequacy. Sound financial strategies are the order of the day. For small sized large amount of capital input is a necessity if they have to grow bigger.
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