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COVER
STORY
US
Banking
- - Katuri Nageswara Rao
US
banking is strong, stable and vibrant. While the universal
banking dominates the scene, community banking has its own
relevance. US banks transfer risks quite substantially to
insurance, pension and mutual funds sectors. Major banks have
the option of choosing their own regulators.
© 2005 IUP. All Rights Reserved
CUSTOMER
CARE
Customer
Service and Grievance Redressal Mechanism
- - S Gopalakrishnan
Realization
has dawned on banks that customer retention is more crucial
than acquiring new customers. The growing competition and
the technological innovations have created tremendous awareness
among the customers. In order to retain even the existing
customers, products are required to be upgraded keeping in
mind the developments in other markets. With globalization,
banks are required to keep themselves abreast with developments
worldwide.
© 2005 IUP. All Rights Reserved
SCENARIO
Airport
Privatization Look Before You Lend
- - Padmalatha Suresh
Lending
to greenfield airport projects involves many risks like operational,
political, completion, financial risk etc. Lenders before
lending huge amounts to these projects need to do proper analysis
of all risks. Banks should also check whether proper risk
mitigation techniques are in place or not.
© 2005 IUP. All Rights Reserved
SCENARIO
Changing
Faces of Indian Banking
- - S Bhaskaran
This
article mainly speaks about the changes that have taken place
in Indian banking sector since the reforms started. Major
innovations are implementation of Basel I, interest rates
deregulation, innovation in lending practices of banks to
corporate sector, retail sector and deposit schemes. There
are also innovative strategies that banks are unable to adopt
due to constraints of banking regulation act.
© 2005 IUP. All Rights Reserved
RISK
MANAGEMENT
Management
of Operational Risk: Key Issues, Concerns and Challenges Ahead
- - BM Mittal
Operational
risk management is getting more importance due to globalization
of banking and financial services. Basel II has suggested
three approaches to manage it. They are basic indicator approach,
standardized approach and advanced measurement approach. However,
due to lack of sophisticated techniques to manage operational
risk, it will take time to evolve and effectively manage it.
© 2005 IUP. All Rights Reserved
RISK
MANAGEMENT
Interest
Rates: An Insight
- - Justin Paul, Prasoon Agarwal and Srikant Rajagopal
Change
in interest rates have wide effects, i.e., change in lending
rates, borrowing rates, inflation, assets prices, share prices
and above all, change in exchange rates. Though the relationship
is not easy in many case, there is need to meticulously interpret
any change in rates by the central bank. This article explains
the effects of change in interest rates.
© 2005 IUP. All Rights Reserved
RISK
MANAGEMENT
Credit
Risk of Exotic OTC Derivatives
- - Yash Paul Pahuja
As
part of their overall risk management strategy, banks are
using innovative products like credit derivatives. These derivatives
pose risks due to failure of counterparty. This credit risk
can be managed by using tools like master netting exposure
and structure finance solutions.
© 2005 IUP. All Rights Reserved
STRATEGY
Technology
Management in Banks
- - DS Prasad and KSL Lavanya
In
the emerging competitive global banking scenario technology
management holds the key to success. The future leaders in
banking will be those who can successfully integrate their
technology strategies with the business strategies. The expectations
of the customers from the banking industry are numerous and
ever increasing/changing. One way of addressing these all
important issues is to make both bank managers and the employees
to realize that only through innovative thinking they can
contribute significantly to the profitability and survival
of the organization.
© 2005 IUP. All Rights Reserved
STRATEGY
Special
Purpose Vehicle: Scope for Banks?
- - Naveen Kumar
There
is a huge demand for infrastructure in India. According to
one estimate, more than Rupees one lakh crore is required
for electricity, roads and railways. Special purpose vehicles
can solve the problem to some extent. Banks and financial
institutions by investing in SPV created by government can
get good return at low risk.
© 2005 IUP. All Rights Reserved
CREDIT
MANAGEMENT
Some
Radical Thoughts on Microfinance
- - SN Ghosal
To
effectively provide micro finance at the root level, studies
undertaken in Asia suggest that it should be routed through
organization of users. The lack of technical knowledge and
market intelligence is a major hindrance. It can be overcome
by joining up with institutions, which can provide necessary
expertise and leadership.
© 2005 IUP. All Rights Reserved
MONEY
LAUNDERING AND FRAUDS
Credit
Card and Frauds
- - Tapash Ranjan Saha
Rising
number of active cards in India, which has reached about one
crore in 2005, brought many undesirable effects like credit
card frauds, payment defaulting, unsolicited card, uncontrolled
spending etc. These drawbacks of the system have to be taken
off by educating and making all the relevant parties more
aware and more knowledgeable. This article also provides tips
for safe use of cards.
© 2005 IUP. All Rights Reserved
BOOK
REVIEW
Modern
Banking
- - Shelagh Heffernan
Modern
Banking, authored by Shelagh Hefferman, offers excellent coverage
of theory and practice of banking and its prospects in the
new millennium. While recognizing the unique position of banks
in the financial sector, the book presents key banking topics
like: Why banks exist, investment, commercial and other type
of banks, risk management techniques they practice, global
regulations, bank failures, banking in emerging markets and
other competition related issues. The final chapter of the
book is devoted to case studies based on ideas and concepts
developed in the earlier chapters. The Goldman Sachs case,
the Bankcomer case and the Bankers Trust case are some of
the leading cases discussed in the book.
© 2005 John Wiley & Sons Ltd. All Rights Reserved. The IUP holds the copyright for the Book Review. |
