The paper 'Sесuritiеs and Маrkеts' is a great example of a Macro and Microeconomics Case Study. The present crisis with its continuing banking sector complications has brought to the open various cases of financial scam and banking scandals which have additionally destabilized the already flopping sector (Zopounidis 2013, p. 15). The issue has raised a lot of concerns about the structural flaws in the manner banks are run, regulated, and supervised. Restoration of investor confidence has proved a major hill and brought the need to bring new tactics to redesign the rules and regulations for the sector.
The banks have faced major drawbacks from the dishonest dealings and the financial crisis that has hit the European markets. Towards the beginning of the 21st century, several salient changes and radical transformation have been witnessed in the banking sector globally. These advances are mostly due to the change in focus in trying to clean up the face of the banks and win back the investor's trust. Besides, the advances also tend to curb tremendous changes in the customers’ needs and the rising competition in the economies from both the private and public banking institutions (CERBAF 2015, p. 56). Changes since 2008 The developments have been social, technological, and even structural.
Some regulations have also emerged that makes the current banking sector one of the most competitive and growing sectors in the world. Technological advancement. Modern technologies have enabled banks to advance in many dimensions, Banks have tried to embrace the new innovations to help them cut their costs, advance in their security, and even beat other market players (Dutta 2011, p. 19). Since 2008, several changes have been noted; Cash Deposit Machines (CDMs) This machine is one of the latest developments in the banking industry.
It is a machine that allows a customer to make a deposit at the machine using ATM cards cum debit cards. It is a development of the card technology. This has highly reduced the frauds committed by the tellers when deposits are made over the counters. E-Trade SBI. Launched in 2011, this is a web-based portal that assist the banks to check the different interest rates of other banks. it assist the customers to make easier financial decisions on where and how to save by the use of the internet.
This method facilitates online analysis of the competitive edge thus giving room for action promptly. Application of artificial neural networks in banking. ANN is a nonlinear model that is trained to extract hidden structures and relationships. In banks, credit risks can be reduced through the application of this model. This model tries to approximate the chances of loan repayment and this in return assists the bank to evaluate whether to advance the loan or not. A lot of emphases has been put on the level of trust on the ANN but it has only been 34% reliable from the studies. Installation of solar ATMs. These are special ATMs that use solar power to run.
It is a development that cuts the electricity cost and utilizes solar energy. ii. Regulatory and structural changes. More stringent regulatory norms on finance have been imposed by the new regulatory changes. Regulations such as the European Market Infrastructure Regulation (EMIR) and the European Banking Authority (EBA) Governance Guidelines have made a step in shaping and reducing the structure and clearing of derivatives.
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