Banking Strategy
INTRODUCTION
A bank service helps to distribute resources of a nation from a high concentrated area to a low concentrated area, to facilitate national growth and development. But numerous external forces shape the market of bank service (Zeithaml, Bitner, and Gremler, 2009)). The service is affected by economic, technological, demographic, socio-cultural, political and legal factors.
The level of prosperity, changing levels of disposal income, inflation rates, stock market performance, the rate of unemployment, shortages of raw material – all these affect the packaging and delivery of a bank service. The combination of interest rates, consumers’ short term and long-term expectations concerning its direction as well as the general level of competition create marketing challenges for the bank service.
Education and occupation have a definite relationship with social class and consumer banking behavior and government exerts some amount of influence on bank service in order to protect consumers, the economy and other related entities through different regulatory frameworks. All of these put together affect the bank service.
Most of prudential regulation of banking was predominant in United States in the mid – 70s emanating as a result of the single-office banking system and traumatic experience of bank failures, particularly during the great depression of the 1980s. And when addressing the Lombard Association in April 1987 on the Central banking origins of the bank’s supervision, the deputy governor of the Bank of England said he never remembered hearing that word ‘supervision’ used in the bank before 1974. The traumatic experiences of the fringe banking crises and bank failures of 1973/74 in the United Kingdom and the similar crisis and failure in the highly regulated banking system of Europe and America further enhance bank regulation all over the world, thus banks regulation becomes a prominent factor to envisaged and build into banking operations in order to
A bank service helps to distribute resources of a nation from a high concentrated area to a low concentrated area, to facilitate national growth and development. But numerous external forces shape the market of bank service (Zeithaml, Bitner, and Gremler, 2009)). The service is affected by economic, technological, demographic, socio-cultural, political and legal factors.
The level of prosperity, changing levels of disposal income, inflation rates, stock market performance, the rate of unemployment, shortages of raw material – all these affect the packaging and delivery of a bank service. The combination of interest rates, consumers’ short term and long-term expectations concerning its direction as well as the general level of competition create marketing challenges for the bank service.
Education and occupation have a definite relationship with social class and consumer banking behavior and government exerts some amount of influence on bank service in order to protect consumers, the economy and other related entities through different regulatory frameworks. All of these put together affect the bank service.
Most of prudential regulation of banking was predominant in United States in the mid – 70s emanating as a result of the single-office banking system and traumatic experience of bank failures, particularly during the great depression of the 1980s. And when addressing the Lombard Association in April 1987 on the Central banking origins of the bank’s supervision, the deputy governor of the Bank of England said he never remembered hearing that word ‘supervision’ used in the bank before 1974. The traumatic experiences of the fringe banking crises and bank failures of 1973/74 in the United Kingdom and the similar crisis and failure in the highly regulated banking system of Europe and America further enhance bank regulation all over the world, thus banks regulation becomes a prominent factor to envisaged and build into banking operations in order to
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