Nomenclature for hazard and risk assessment in the process industries essay
The choice of the bank is very important for me because it determines the safety of my funds. This is why reliability of the bank and its stability are the major factors that determine my choice of the bank. At the same time, the choice of the bank also depends on other factors that may be revealed through the analysis of the bank’s performance and its history, both long-run and short-run. At this point, I would consider carefully whether to support or not the decision to remove some of the over-burdening regulations since the performance and history of the bank can help to determine, whether the bank can afford such changes without any considerable threats and risks to its clients or not.
The reasons I chose this bank are diverse but the major reason or the choice of the bank was its reliability since the bank has managed to stumble through the last economic recession and mortgage crisis successfully. Moreover, as I studied the history of the bank, which dates back to the middle of the 20th century, the bank has managed to overcome other economic crises successfully too. This is why the bank has proved to be reliable and stable. Therefore, I decided that the bank is unlikely to face a steep decline in the nearest future and I can deposit my free funds into this bank,
The ‘special features’ this bank offers that attracted me the most is the relatively high benefits which I could obtain for my deposits that make it more profitable than the average bank in the industry can offer to me at the moment. At least, I am taking into consideration only those banks, which have proved to be reliable and stable and which have been operating over two decades at the least (Finley, 2007). The analysis of the history of the bank is very important because it does not only shows that the bank has managed to overcome serious financial crises but also the bank’s history reveals how the bank deals with difficult, challenging situations, which may emerge unexpectedly. My bank has proved to be able to deal with those challenges successfully. At the same time, the ‘special feature’ of the bank is the current focus on the increasing deposit of customers of the bank. The bank has declared the increase of customers’ deposits as one of its major priorities at the moment. This is why the bank offers attractive interest rates for consumers, who want to deposit their money into the bank. The relatively high or above the average interest rate makes the bank attractive for customers, at any rate in terms of short-run investment of free funds.
The regulations this bank faces concern the shift toward the effective management of customers’ deposits and increase of deposits made by consumers with regard to the level of capitalization of the bank (Seitanidi, 2008). At the moment, the bank insists on the liberalization of its policies concerning the attraction of new customers and their deposits, on the one hand, and the level of capitalization of the bank on the other. The bank stands on the ground that it has sufficient capital and can raise more funds, if necessary, to cover unexpected risks and threats since the bank has extensive experience of risk management in the time of economic crises and financial difficulties, which accompanied those crises.
In this regard, it is necessary to take into consideration recent changes this bank has gone through. To put it more precisely, the bank has undergone a considerable change in the course of its business development recently. The bank used to focus on both investment projects and deposits of customers. However, after the economic recession of 2008, the bank had to refuse from its investment banking operations and focused on deposits entirely. At first, the shift seemed to be painful for the bank, which was quite successful in both deposit and investment management. However, the bank preferred to focus on more reliable branch, which was vulnerable to fewer risks compared to investment banking branch, which has started to bring the bank considerable financial losses, especially in 2007-2008 (Jones, 2012). As a result, the bank had to obey to new regulations and focused on deposits entirely. However, the bank decided to boost its deposit branch which required more liberal policies and decreasing of regulations in this field.
As for the manager’s request, I would rather support it than decline it because I believe the bank is at the strong position to keep growing and enhancing its performance, while the decrease of the overregulation will stimulate the further growth of the bank and its business development. In fact, the bank should get a chance and boost its business development after the completion of the shift toward a deposit banking business only.
Thus, I believe that the request of the manager should receive my support to help the bank to enhance its business development and bring me profits in the future.
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