Report Regarding Banking IndustryEssay Preview: Report Regarding Banking IndustryReport this essayReportRegarding commercial banks environement and marketsFrom: Dragos Savulescu– Student BZT 820, T5972690To: Carol oLeary– Tutor –Date: December 12, 2007Pages : 12Table of ContentsExecutive SummaryIntroductionSTEPLE Analysis3.1 Social Factors3.2 Technological Factors3.3 Economic Factors3.4 Political FactorsLegal factorsEnvironement factorsMichael Porters Five Forces Analysis4.1 Buyer Power4.2 Supplier Power4.3 Intensity of Competition4.4 Threat of New Entrants4.5 Threat of Substitute ProductsConclusions6.1 Competitive Positioning6.2 Competition StrategiesMarket OutlookAppendix 1: Banking Market in RomaniaAppendix 2:1. Executive SummaryExternal environement is full of contradictions for international commercial banks. Traditional brands experienced troubles and a crisysis into a particular market can affects businesses at the global level. New managing currents occur and power of executives starts to decline. Technology progress becomes one of the major influencing factors for banking industry development.
The report also contains an assessment based on STEPLE analysis, covering the relevant political, economic, social and technological factors that have implications for the development of the banking industry.
Additionally, the report evaluates the industry within the Michael Porter framework. It goes on to describe the competitive landscape.This report presents emerging markets as a very attractive segment to play into, plenty of opportunities. Risks are major, potential benefits accordingly. A more detailed analyse has been done for CEE region and the conclusion : As far as from Western Europe is the market as the risk/benefits balance size is bigger. could be a definition for emerging markets.
2. IntroductionTo state what the subject is about, I used the banking definition from Investor.com :Banking=In general terms, the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.
(source :In order to achieve the purpose of the assessment, I decided to use mainly the STEPLE model and 5 Forces analyse. Some elements from other models as Strategic Groups and Strategic Space were used when emerging markets were analyzed.
Although each question is approached in a separate iteration, I choose to consolidate the answers into a single document because the subjects are related.
It is obvious and beyond any question that Globalization is « the word », representing one of the main characteristics of banking sector starting from 90s.
As a personal opinion, I would like to state the financial services as the fourth major segment of the global segmentation of revenue (I used the same colour to underline the detachement of Financials from the III-rd sector).
IV Sector – Financials (banking, insurances, capital management)III Sector – ServicesSecondary Sector – IndustryPrimary Sector – AgricultureFig. no 1It seems much more comprehensive to me to convert this report into a ppt presentation.Umbrella strategy model is the most common one used.3. STEPLE analysis3.1. Social factorsSocial factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, changes in tastes and buying patterns,
As the main influencing social factors I pinpoint:Demographics distribution is changing – regarding people living in cities versus country sideLyfestyle changing, comprehensive knowledge and better understanding of personal objectives and personal financial situationIncrease the need for financial planning and asset managementIncreasing web accesibilityEmploymentWorking ConditionsPayment-System Changes (especially ATM usage and on-line payments)First, from the point of view of financial sector development, people who have not been integrated into the formal financial sector because of low incomes, gender, ethnic identity or remote location often represent a large and potentially profitable market for institutions that can develop ways to reduce the
Currently, the economy is in an ‘out’ phase.The government has issued a directive to facilitate the implementation of the financial reform process, on the basis of all these factors. The goal is that the new regulatory environment allows for a better solution for all consumers.
$12.99 for $20 per year of fixed monthly mortgage, Rs 15,100 to Rs 15,300 per year on monthly mortgageMOU
For the financial sector to be able to scale up with the demands of economic development, it will be crucial to address the challenges of making it work, at the grassroots level with high-quality and efficient, multi-member lending agencies, not merely on the banks.MISBP Group>
Over the past few years, the number of bank lending agencies, which include various large and small firms, has increased by more than 50%. The Indian Banking Corporation-led consortium for lending, in which banks under the National Bank are integrated with Indian Government, is one such agency, working to meet high needs in the sector.
more than 20 private and government government agencies are involved in lending from government owned banks to private banks, across all industries, including banking.>
There is growing concern about increasing the number of banks and other intermediaries (including the banks under the National Bank) providing government loans for their beneficiaries that cannot access state banking.
The Government has also taken an increasing interest in developing a new national financing system that is flexible and can ensure that all individuals, businesses and government depend on national funds for loans. This means that any financial institutions with deposits of more than Rs50,000 and loans with up to Rs25,000 per annum are not required to engage with an individual Government agency in connection with their government loans.
While the amount that a small percentage of loans be repaid with an agency is relatively low in many cases, it rises significantly at the highest points of the maturity. As banks and other institutions engage in more and better banking relationships, banks will have increased funds available to them to invest in other sectors of the economy.It should also be emphasized that there are also opportunities for banks to become larger, which would allow them to lower their share of the overall total banking lending burden in India.”
On the surface, there appear to