Latest Trends in Financial Management and Financial services

Abstract

The financing and financial services are fast moving from year to year due to the current issues in the economy which have a direct relation with the latest technology, political and regulatory authority. Financial institutions are competing to provide fast services at low interest rates in relation to the quality of assets. Non-banking institutions are aggressive in providing financial services with innovative strategies, while trying to minimize the risk rate.

Full digital banking and mobile banking are providing flexibility, adaptability, integration and efficiency. Market niches have to be addressed with different strategies. Technology is being used in the financial markets, the availability of skilled manpower to address the issues related therein is a challenge for the financial institutions.

Daily finance and micro finance are playing a vital role in the Indian economy which does not have a regulating authority.  These fulfill the immediate financial requirement of petty businesses which are not in the purview of the government or the regulatory body.. Large banks do not have the ease of providing finance because of the complex procedures, rules and regulations within which banks have to function. There exists a wide gap between sect oral financial requirements that needs to be addressed by the Government with public private partnership. The transparency in maintaining and sharing the relevant data with the help of emerging technologies will lead to healthy financial markets.

While some banks are trying to deal with historic loses reflected in their balance sheets.  The aim of the study is to explore the business activities of banks with a special focus on their lending behavior and responsiveness to unconventional monetary policy. Deleveraging has been mainly via market to market assets falling in value and policy is now serving to reflate these assets without a strong impact on lending. . A study shows that GSIFI banks are least responsive to policy. Non GSIFI banks respond to the lending rates spread to cash rates, the spread between lending rates and the alternative investment in Government bonds, and the distance to default ( the bank’s solvency). The study would show that better lending in the US is a result of safer banks and a better spread to govt. bongs – yields on the later are too attractive relative to lending rates in Europe. Finally, the paper comments on the problem of using cyclical tools to address structural problems in banks and suggests

Which alternative policies would better facilitate A FINANCIAL SYSTEM MORE aligned with lending.