Role of Financial Analyst in the Banking Industry - Example

The paper "Role of Financial Analyst in the Banking Industry" is a perfect example of a finance and accounting capstone project. The main focus of the paper is the role of a financial analyst in the banking industry. For this purpose, support from a variety of secondary sources was obtained. In order to gain fresh and first-hand knowledge, personal interviews were conducted, mainly targeting the financial analysts gathering data of their activities. Although there are many studies that focus on the overall role of financial analysts in the economy a grave need exist to highlight their role in the banking sector and as such it is the main research area of the paper.

To understand the financial analyst role in the banking sector, we have developed a background by discussing the banking sector and the overall activities of a financial analyst in different sectors of the economy. We have tried to analyze the skills and capabilities of financial analyst along with the challenges faced. This academic and research-oriented discussion enables us to provide an effective insight and establish a robust base to the main theme of paper, ‘the role of a financial analyst in banking’.

Recent financial reporting scandals have been attributed to relatively poor corporate governance oversight, understatement of the role played by the financial analyst. The significance of financial information and reporting is considered necessary for the performance of a task by the financial analyst. Accurate information increases the flexibility and performance of a firm. For the purpose of ensuring qualitative features in financial information, it has become imperative for the financial analyst to improve the overall quality of corporate governance and adopt such measures that are helpful in providing trustworthy data supportive for executing important decisions.

Banks are the backbone of the global economy providing required capital for infrastructure, job creation, innovation and overall prosperity. Banks play a significant role in society, impacting not just the expenditures but also the overall growth of industries. The banking industry employs financial analysts to provide support in guiding businesses and persons in opting investment choices. The modern banking sector is confronting intense competition with the grace need to constantly develop innovative products. As such financial analysts do analysis and conduct research, which they effectively use in offering suggestions for investments to the clients of banks. (Babbie, E. 2004)

Problem Statement and Research Question

In this study, we focus on the role of a financial analyst in banking. Although there are many studies concentrating on the overall role of a financial analyst in the economy, few researchers have attempted to conduct the financial analyst role in the context of the banking sector. As such the main research question of this study is as follows:

• What role do financial analysts play in banking? Other research question will be to find out the significance of financial reporting as support for the analyst and is the role distinctive in the banking sector as compared with different institutions.

Objectives of the Study

• To discuss the global banking sector
• To investigate the significance of financial reporting and information
• To discuss the general role of a financial analyst.