The basic data used to determine the effectiveness of commercial banks are included in the banks' financial statements. these data relate to the bank's involvement in specific active transactions, necessary to determine the quality of the loan portfolio, to determine the quality of credit, operational, liquidity, debt, operational risk management processes, etc. An IT risk analysis should be added to this. In addition, financial statements also include data to calculate the deposit security ratio, profitability of individual categories of assets and use of available financial resources. This type of data should be combined with individual categories of estimated risk levels measured in correlation to the involvement in individual active operations. However, in the case of the analysis of the investment bank's effectiveness, it should additionally include an analysis based on risk assessment models for investment in derivatives and other capital market instruments. In this regard, many banking procedures were previously unreliably carried out which generated very high levels of credit risks and caused huge financial losses, eg in the Lehman Brothers investment bank, bankruptcy of this bank and the beginning of the global financial crisis in mid-September 2008.
I researched this problem and in my publications I confirmed that it is possible to combine the question of the reliability of banking procedures implemented in the area of risk management with sources of financial crises.
However, I would like to hear your opinion on this matter.
In view of the above, I am asking you the following question: Is it possible to combine the ethics of banking procedures in the field of banking operations with the sources of financial crises?
Please, answer, comments. I invite you to the discussion.
I believe it is possible to combine the ethics of banking procedures in the field of banking operations. It is not only possible, but it is necessary.
Several answers are possible:
- if by banking operations you mean all the daily operations made by a bank officer with his customers, I think that it will be really difficult to find information. First, some behaviour could be just opportunist, a bank officer could adopt bad habits ethically speaking but useful for him to reach the commercial objectives. Second, those behaviours could be a part of a strategic dimension and, as a part of a competitive advantage, really difficult to find.
- if your target is the investment banks, just have a look if the ethics procedures are strong enough (or not and may be made to promote financial performance with or without ethic)) to avoid individual bad behaviour.
- Badges
- Science topic
- Similar topics
- Philosophy
- Ethics