buy custom The Banking Industry in the United States of America essay

buy custom The Banking Industry in the United States of America essay A bank is any institution that acts as a financial link between the clients, who do not have enough capital, and those, who have surplus of capital. Banks are highly important institutions of finance and are highly regulated by most governments. As a client of the Wells Fargo bank, I love the ease, with which one can secure a loan for their university studies. Moreover, I enjoy the ease, with which one can prepare payrolls and benefits for his/her staff for a small business. It is also easy opening an account with this bank. I would not switch to any other bank, because this bank takes care of the needs of the common customers, and is fairly stable in business with a year-to-date net income of $9,707,000. The benefits of insurance companies working together with the banking institutions are many. The insurance companies would be able to cut on the employees wages and salaries as some of their products would be sold directly by the bank. This means they will have less direct sales representatives. The bank staff would also be able to get useful information on the products sold by the insurance company. It will also be a win-win situation for both an insurance company and a bank, as they will share the commissions. A country may introduce deposit insurance to provide protection for its citizens, who deposit money in banking institutions. This may be done in part or full. This is directed at protecting the citizens from losses arising due to the inability of a banking institution to pay to its clients. This is a strategy that is aimed at providing stable financial progress to the institutions and bank depositors. This will definitely cover the losses of a bank on the verge of failing. If a banking system is well-organized, the economic growth of a given nation is bound to be in the forward direction. When the bank evaluates and diversifies the potetial risk of its borrowers, they contribute positively to the economic growth of the nation in question. Among the advantages of deposit insurance is that it minimizes or excludes the danger of its client facing a loss. By providing the protection of the clients capital, which may be his/her life-savings or vital transaction capital, the depositor does not have to be afraid of losing their capital, and can instead concentrate on running their business. Deposit insurance provides the certainty of the process of resolution in the case of a bank being on the verge of failing. This works towards maintenance of stability even when crisis in the entire banking industry threatens. This system should be partially subsidized by the taxpayers in order to reduce the burden, so that the bank is not let off the hook by the government. The taxpayers are more bound to make a profit if there are zero subsidies. This would make sure that both the banks under crisis and the depositors do not get extra profit. Among the laws that have changed the banking industry in the United States of America is the deposit insurance policy that has seen the depositors take loans to invest without the fear of the banking getting into a crisis. The second is the law that protects the consumer. This law gives the consumers the right of information to the terms and conditions when opening a new savings account. The third banking law is the central banking regulation that is put in place for the regulation of transactions. Bank failures are a sign that industry is healthy. This is because when the industry is healthy, there is plenty of competition, so the industry is open for everybody and only the best banks will remain operating. When a bank is facing crisis a merger is the most likely option in order to continue being in operation. For exammple the Berks County Trust Company and the Schuylkill Valley Bank merged to form the Berks County Trust Company and ultimately the Wells Fargo Bank. Mergers are also important in order to continue with the cross-selling of products of two financial institutions. A website should be designed to meet the expectation of the clients. A company can involve the clients in the designing of its website by having a questionnaire that the customers can fulfill. This can be done through the feedback form. The website designed should have the capability of recording the number of visitors per day and be geared towards promoting the products that the bank offers. Internet fraud is becoming a very common act in this era and more and more customers find themselves at the mercy of internet fraudsters. In order to prevent internet fraud one should never expose their personal information online. For example your names, place of residence and work, as well as all the passwords should always be kept private. The customers should never respond to the emails from strangers as well. Customers should deal with the companies that are trusted and enquire as to when the products are to be delivered. Once you detect that you have been a victim of the internet fraud, you should first put a fraud alert on all credit transactions that are done on your behalf. As a customer, one should communicate with all the institutions that are affected directly. Most financial institutions have assets that they have purchased in order to increase their solvency. In some cases the assets that these financial institutions acquire do not have any physical substance. Goodwill is a scenario, in which a banking institution buys another company and pays more than what its net value is. Among other intangible assets are mortgage servicing rights and purchased credit card rights. 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