Escolar Documentos
Profissional Documentos
Cultura Documentos
PRESENTED
BY:
Puja Bedi
UM14335
Rachit Jain
UM14336
Rahul Mandloi
UM14337
Shruti Ray
UM14345
Abhishek
Singh
UM14354
AGENDA
Introduction
Primary functions of commercial banks
Disruptive Innovation in Banking
Future trends in Banking Industry
E-Transfers replacing Currency
Conclusion
Introduction
A commercial bank is a type of bank that provides services such as
Payments
Traditional
Options(Cheques , DD)
Modern(Net banking, etransfers)
Financial
Intermediation
Deposits from public
including saving
account deposits,
recurring account
deposits, and fixed
deposits
Credit Creation
loans and advances
including
anoverdraftfacility,
cash credit, bill
discounting, money at
Financial Services
Investment banking
Insurance
Wealth Management
Forex
Credit Creation
It is the process of creation of credit by commercial banks. More use of DD
Limitations:
Amount of cash of banks. Greater is amount, larger is its capacity for c.c.
Cash reserve ratio: lower is crr, higher is credit creation capacity
External drain: larger is amount of money withdrawn from bank, lower is its cc.
Extent of borrowing of funds by business. More c.c. when business is prospering.
States has fallen dramatically, from more than 70 percent around the
turn of the century to just around 30 percent today
Bank share of corporate debt in the United States has declined from
19.6 percent in 1979 to 14.5 percent in 1994.
Depositors are moving away from banks to money market mutual funds
and large firms are issuing public debt to meet their financing needs
rather than borrowing from banks.
Competition on both sides of the bank balance sheet has increased
On the banks Asset side, the growth of the commercial paper and junk bond
markets has given large firms an alternative to borrowing from the bank.
On the liability side, new technologies and deregulation have given
customers choices like mutual funds
nontraditional products.
For example:
It appears that dramatic increase in volume of commercial paper issuances is impacting
Liquidity Provision
Bank provides liquidity on both sides of the balance sheet to both
banking field.
People will move to conglomerate banking
This puts local and regional banks in a bind since they have fewer resources to
build up their own networks and lack bargaining power to drive hard deals with
third-party platforms.
The declining value of the physical footprint also will mean they are less
attractive takeover targets.
Bigger banks will see better rewards from investing in technology rather than
new branches.
Widespread adoption of mobile payments and digital banking will change the
climate, possibly submerging some smaller banks.
The biggest ones, though, arent likely to succumb to a rising technology tide.
Conclusion
No matter how successful Apple Pay is, customers will still
http://www.pymnts.com/in-depth/2014/how-banks-can-sur
vive-in-a-post-2020-payment-market/#.Vb-Go_mqqko
http://www.nber.org/reporter/fall98/rajan_fall98.html
http://www.institutionalinvestor.com/blogarticle/3353378/bl
og/will-banks-survive-the-latest-wave-of-disruptive-technol
ogies.html#.
VcA9BTGUc0I
http://www.ijcst.com/ijmbs/research1/ruby.pdf