Description
This is a presentation describes on Universal Banking in the world and India. It covers the basic concepts related to universal banking.
Universal Banking
Agenda
• • • • • • • • • What is Universal Banking? Why Universal banking? International Scenario Universal Banking in India Advantages Disadvantages Factors for consideration to U-Bank Future determining future growth References
• As per the World Bank," In Universal Banking, large banks operate extensive network of branches, provide many different services, hold several claims on firms (including equity and debt) and participate directly in the Corporate Governance of firms that rely on the banks for funding or as insurance underwriters."
Why Universal banking?
• Narsimham Committee II (1998)
• Khan Working group
International Scenario
– Switzerland – Home of universal Banking
– United Kingdom – Commercial banks
– USA – Extreme Model
Universal banking in India
The issues which are key in Indian context.
i. Regulatory burden
ii. Regulatory requirements – CRR
– SLR – Priority Sector
iii. Distinction between maturity and duration iv. Optimum Transition path
Advantages
• • • • Economies of Scale Profitable Divisions Resource Utilization Easy Marketing on the Foundation of a Brand Name • One-stop shopping • Investor Friendly Activities
Disadvantages
• Grey Area of Universal Bank • No Expertise in Long term lending • NPA Problem Remained Intact
SALIENT OPERATIONAL AND REGULATORY ISSUES OF RBI TO BE ADDRESSED BY THE FIs FOR CONVERSION INTO A UNIVERSAL BANK
• • • • • • • •
Reserve requirements Permissible activities Disposal of non-banking assets Composition of the Board Prohibition on floating charge of assets Nature of subsidiaries Restriction on investments Connected lending
SALIENT OPERATIONAL AND REGULATORY ISSUES OF RBI TO BE ADDRESSED BY THE FIs FOR CONVERSION INTO A UNIVERSAL BANK
• • • • • • • • •
Licensing Branch network Assets in India Format of annual reports Managerial remuneration of CEOs Deposit insurance Authorized Dealer's License Priority sector lending Prudential norms
Factors determining future growth
• Exploiting economies of scale and scope in banking • Achieving competitive advantages in all areas of banking • Ways of achieving Universality
References
•https://wesfiles.wesleyan.edu/home/mimai/web/wescourses/2007s /econ341/01/Slides/Universal%20Banking%20II.pdf •http://www.indianmba.com/Occasional_Papers/OP157/op157.html •http://www.freelists.org/post/sbinews/Universal-Banking-TheRoad-Ahead-From-Indiainfolinecom
doc_674741134.pptx
This is a presentation describes on Universal Banking in the world and India. It covers the basic concepts related to universal banking.
Universal Banking
Agenda
• • • • • • • • • What is Universal Banking? Why Universal banking? International Scenario Universal Banking in India Advantages Disadvantages Factors for consideration to U-Bank Future determining future growth References
• As per the World Bank," In Universal Banking, large banks operate extensive network of branches, provide many different services, hold several claims on firms (including equity and debt) and participate directly in the Corporate Governance of firms that rely on the banks for funding or as insurance underwriters."
Why Universal banking?
• Narsimham Committee II (1998)
• Khan Working group
International Scenario
– Switzerland – Home of universal Banking
– United Kingdom – Commercial banks
– USA – Extreme Model
Universal banking in India
The issues which are key in Indian context.
i. Regulatory burden
ii. Regulatory requirements – CRR
– SLR – Priority Sector
iii. Distinction between maturity and duration iv. Optimum Transition path
Advantages
• • • • Economies of Scale Profitable Divisions Resource Utilization Easy Marketing on the Foundation of a Brand Name • One-stop shopping • Investor Friendly Activities
Disadvantages
• Grey Area of Universal Bank • No Expertise in Long term lending • NPA Problem Remained Intact
SALIENT OPERATIONAL AND REGULATORY ISSUES OF RBI TO BE ADDRESSED BY THE FIs FOR CONVERSION INTO A UNIVERSAL BANK
• • • • • • • •
Reserve requirements Permissible activities Disposal of non-banking assets Composition of the Board Prohibition on floating charge of assets Nature of subsidiaries Restriction on investments Connected lending
SALIENT OPERATIONAL AND REGULATORY ISSUES OF RBI TO BE ADDRESSED BY THE FIs FOR CONVERSION INTO A UNIVERSAL BANK
• • • • • • • • •
Licensing Branch network Assets in India Format of annual reports Managerial remuneration of CEOs Deposit insurance Authorized Dealer's License Priority sector lending Prudential norms
Factors determining future growth
• Exploiting economies of scale and scope in banking • Achieving competitive advantages in all areas of banking • Ways of achieving Universality
References
•https://wesfiles.wesleyan.edu/home/mimai/web/wescourses/2007s /econ341/01/Slides/Universal%20Banking%20II.pdf •http://www.indianmba.com/Occasional_Papers/OP157/op157.html •http://www.freelists.org/post/sbinews/Universal-Banking-TheRoad-Ahead-From-Indiainfolinecom
doc_674741134.pptx