Page 37 - BANKING FINANCE November 2015 ONLINE

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COVER STORY

FUTURE
PREPAREDNESS OF THE
BANKS TO MEET THE
STRUCTURAL REFORMS
IN THE FINANCIAL
MARKET

"Tomorrow belongs to the organizations banks require a large international presence. Several gaps

which prepare for it today" exist in providing credit to certain sectors. These gaps need
to be filled.

The global banking landscape is changing fast. There is also a need for the presence of specialized and
Developments are being driven partly by economic niche banking entities to cater to the specific needs of a
rebalancing, but also being shaped by the expectations of growing and dynamic economy,with a view to moving
a diverse group of stakeholders, including regulators, towards a dynamic banking structure that caters to these
investors, customers and wider communities. multiple functions.

The case for transforming the existing banking structure The structural change in the banking industry that can be
into a more dynamic banking structure stems from several highlighted is the increased participation of international
considerations. It is felt that there is scope for increasing financial players in the Indian financial system as well as
the size and capacity of the banking structure. There is also Indian financial players exhibiting a tendency towards
an imperative need for increasing the outreach of the becoming global players. The structure of the banking
banking structure. With the size of the economy increasing; industry in this context has to be flexible enough to allow
for economic expansion and simultaneously provide stability
About the author to the financial system of the economy.

Senior Manager Volcker Rule under the Dodd-Frank Act in the US, Vickers
Punjab National Bank Reform proposals in the United Kingdom and Liikanen
Marketing Division, HO: New Delhi reform proposals in the EU are driven by the overall
objective of limiting the banks' managements' capacity for
Amit Joshi

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