Banking company as a company which transacts the business of banking in india. Mergers and acquisitions in the banking sector is the way for the banks to seek new opportunities and gain strategic benefits on financial markets, as well as extend their customer base. As the book focuses on legal aspects, it addresses only those banking and economic policy issues required for a proper understanding of the banking law or the legal strategies, procedures, and practices that have evolved in the treatment of banking problems. Legal aspects of banking operations case laws on responsibility of paying and collecting banker indemnities or guarantees scope and application obligations of a banker precautions and rights laws relating to bill. Kothandaraman, canara bank retd, guest faculty, iibf module a. Az2 legal aspects of doing business in north america release 1 2012 incorporation or licenses to foreign corporations to do business in arizona and the administration of the arizona securities act. Hancock, humphrey, and wilcox 1998 estimated that the federal reserves electronic payments. The legal implications of the prudential supervisory assessment of. There are several types of mergers and also several reasons why companies complete mergers. Banking services operations free educational notes. Internal banking operations at a retail bank involve opening new accounts, transferring money between accounts, and assisting customers with managing deposits. Branch operations branch operations form the key element of the financial service providers infrastructure, with an objective to augment customer service systems and improve internal efficiencies.
Restructuring is a type of corporate action taken when significantly modifying the debt, operations or structure of a company as a means of potentially eliminating financial harm and. Winning back trust through transformational change. Merging two companies can provide the firms with synergies and economies of scale that can lead to greater efficiency and profitability, but it is important to note that mergers can have a downside too. Business banking is another common banking operation. How banks can manage compliance and operational risk. This section of the report explores aspects of the congressional question 4 and provides data on banks efforts to be more accessible and to reduce obstacles that may prevent unbanked individuals from establishing conventional accounts. A legal structure that is in line with the bank or banking groups operational structure. Under right to information act, the information that can be accessed should be held by or. It also focuses on the legal aspects of the central banks role in the field of monetary law, as well as examining the greek. This article throw light upon the ten important reasons for mergers. This book is licensed under a creative commons byncsa 3. An amalgamated company will have more resources at its command than the individual companies. Banker can refuse opening ac for undesirable persons. At this point we are unsure whether it would be best for them to merge with us or dissolve their organization.
Next generation banking combining process and dd 4 2242009 10. Page 16 branch operations how faas can help how faas can assist you ey can assist with changing the transformation of the financial accounting process and can help you with the accounting aspects of the restructuring. Banks and banking the banking companies act of 1949, defines. It may be harder for the combined organization to cooperate and communicate, and theres a risk that companies with a toolarge market share. European central bank legal working paper series 84. This can help in bringing more clarity and understanding of the topics covered for promotion, caiib and jaiib exam. The legal issues involved in and the practice governing the different kinds of.
Oracle flexcube branch operations user manual release 4. A core function of operations is to control and manage the processing of trades made by the various other divisions of the bank. How an understanding of banking domains and its mapping in the merged banks is vital there are different types of banking functions which a bank performs. Buy legal and regulatory aspects of banking jaiib 3rd. This section of the manual of examination policies provides a broad perspective of international banking. Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. The glasssteagall legislation describes four provisions of the united states banking act of 1933 separating commercial and investment banking. Many countries have propagated mergers and acquisitions laws to control the operations of the trade units within. Banks article 2 1 a bank is a financial institution which. Proposed typologies of banking operations strategy article pdf available in international journal of services and operations management 161 january 20 with 1,187 reads how we measure reads.
Legal aspects of bank operations bank operations institute independent bankers association of texas october 16, 20 jacob clifton, attorney david dixon, counsel office of the comptroller of the currency u. Thus, the entire focus on timing is driven by the enterprises strategic needs and a market and. Legal aspects of banking operations case laws on responsibility of paying and collecting banker indemnities or guarantees scope and application obligations of a banker precautions and rights laws relating to bill finance, lc and deferred payments laws relating to securities valuation of securities modes of charging securities. This is legal aspects of banking, chapter 17 from the book the legal environment and advanced business law v. Legal framework of regulation of banks what is banking. In most countries, bank mergers are subject to oversight by both competition. Issues for consideration in mergers and takeovers from a. Technically literal accuracy is not necessarily sufficient. In determining if there is deception, the target audience may be considered if a bank targets a financially distressed, poorly educated market, that may be considered in determining what is reasonable.
Another aspect of a good banking system is that customers are provided quality services at competitive prices. Mergers and acquisitions laws in india maps of india. This course can be customized to meet your country region specific. Retail branch operations federal deposit insurance. Given the increase in applications to acquire or merge following the recent recession and changes to the application process resulting from passage of the doddfrank wall street reform and consumer protection act of 2010, this document should be especially useful for banking organizations that are contemplating acquisitions. Regaining the trust of private banking clients that was lost during the financial crisis would hardly seem to be the responsibility of the chief operating officer coo. To start, we recommend that banks take a look at six innovative approaches to drive change. The four previous editions of this book have been widely used. We are entering into discussions with a small organization to assume their operations and some of their staff. Given the major changes in the compliance and regulatory landscape and the resulting longterm impact on banks, incremental adjustments will simply not be enough. International issues in the regulation of financial advice. Banking law i general provisions general provision banks.
Operational excellence in retail banking how to become an allstar. It begins with a module on the legal framework of regulations and the subsequent module covers a wide spectrum of laws that impacts on banking operations. Buy legal and regulatory aspects of banking jaiib 3rd edition book online at best prices in india on. Summary banks report that they have modified their retail branch operations in a variety of ways but do not. Banking law i general provisions general provision article 1 this law shall regulate the conditions for the establishment and operations of a bank, as well as for the discontinuation and supervision of bank operation. One of the pur poses of bank regulation, therefore, is to create a regulatory frame work that encourages efficiency and competition and ensures an adequate level of banking services throughout the economy. Bank mergers and acquisitionsunderstanding business. Pdf merger and acquisition strategies in banking industry. Integrate relevant aspects of operational and compliance risk management. Overall, business banks function very similarly to retail banks, except that their clientele consists primarily of businesses. This book offers a comprehensive coverage of laws and practices relating to banking.
Although histories of banking dwell on the relationship between banks and the national government, the banking law that governs the daily operation of checking accounts is state basedarticle 4 of the ucc. Pdf proposed typologies of banking operations strategy. Branch banking operations training program who can do. Where there have been competition problems, competition officials have been. This survey helped bcg identify the actions that retail banks need to. To carry out any business activity and, more so, in case of the banking business, a basic knowledge of the relevant provisions of various laws impacting the business activity is essential. A regulations and compliance legal framework of regulation of banks. The article 1933 banking act describes the entire law, including the legislative history of the provisions covered herein as for the glasssteagall act of 1932, the common name comes from the names of the congressional sponsors, senator carter. Jaiib exam legal and regulatory aspects of banking mcqs book. Subject banking operations 1 course code 315f class m. The more relevant legal aspects of banking are stated, in brief. Merger and acquisition of the undertaking of banking companies in. Need for credit policy, credit policy components of credit policy, credit policy pursued by the government, credit culture.
And yet, on closer consideration, it becomes clear that operations have an essential role to play. Operation management in banking banking operations processes and transactions are executed correctly, which minimizing risk and maximizing quality of service. A practical guide to functioning of a bank branch understand the procedure of opening different types of accounts with a bank discuss various types of deposits understand the advantages and disadvantages of different types of deposits themes of this product. They relate to all aspects of banking and financial activities, aimed to facilitate the understanding and. Its purposes, implementation, and effects not only reflects these objectives, but reaffirms our intentions to bring about a greater understanding of the u. Motive for merger in the banking sector is for cost reduction, rationalization of. Are fresh university graduates and like to pursue a career in banking are already working and interested to switch over to banking career are already working in a bank and like to excel in terms of better position and compensation are already working in a bank and want to. Legal aspects of regulatory treatment of banks in distress. A merger is an agreement that unites two existing companies into one new company. They are retail banking, commercial banking, investment banking, and private banking. Clarity and prominence of major terms is important.
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