Category: Financials

Exploring the ‘Immorality-Hypothesis’ in the World of Finance

We’re getting rather used to revelations about sharp practice in the banking sector. The row about HSBC’s tax services to rich clients has raised, yet again, crucial questions about the business culture which allows such scandals to emerge. One common idea is that those involved have lost their “moral compass” and succumbed to the imperative of pure greed as they employ subterfuge to do things which end up doing harm to the general public.

Banking Ethics Questionable History

Ethics & Banking are supposed to be strongly related to each other, which could potentially lead to strong governance and a stable economy. However, in recent years, poor regulation, sloppy governance, shadow banking & greed for profits has led to a global economic collapse. The collapse witnessed many lawsuits against banks and a loss of public confidence in the system. It was seen that banks had tried to make personal profits when there was global financial crises.

Chinese Banks Outshine US Banks In Global Ranking 2015

The Banker’s Top 500 Banking Brands February edition 2015 released a league table of the world’s biggest banks, ranked by their brand value. A lot of ranks seemed to have changed thus reflecting a change in the banking industry across the globe. It also indicates that there is potential for strong growth in emerging markets in coming times.

Banking Developments in 2015

The Banking Industry has evolved tremendously over a period of time. Nowadays, modern banking sector is doing away with its traditional methods and shifting focus to a more advanced and digitally connected network. While many countries are still struggling to get basic banking facilities, there are others that are growing not only in number but facing fierce competition form non-banks. As we all know, banking, in recent years, is not all about depositing and taking loans but much more.

The Digital Connection Between You and Your Bank

Banks have evolved over a period of time and have tried their best to remodel themselves with changing times and remain in sync with their customers’ needs. With practically everything online from buying books to getting air tickets, banks are trying hard to live up to the customers’ expectations that are mostly technology driven. According to a major industry-wide report into consumer-friendly technology by the BBA and EY, mobile and internet banking is now being used for transactions worth nearly £1 billion a day in Britain. The U.S.

U.S. Banks are Buying Treasuries, Taking Deposits, but not Lending

The drop in US bond yields is perhaps the biggest surprise for investors this year.  The gradual decline in Federal Reserve buying, faster growth, and the prospects for a rate hike in 2015 were expected to lift bond yields.

Who would buy US Treasuries when the largest buyer was pulling back, and yields would inevitably rise? Moreover, with China’s current account having been reduced, and reserve growth slowing (and went into reverse in Q3), and less reserve accumulation, foreign central banks’ demand was likely to soften. 

Can Islamic Finance Fix The Current Financial System?

The Islamic finance sector is now worth close to $1.8 trillion. Not surprisingly, it is garnering the world’s attention. And despite the challenge Islamic banks will face once it begins challenging the much larger conventional players, their emphasis on financial stability can only help improve market conditions.