The Banking Crisis In World

                                                       Banks are the custodian of public money and trust. Hence their position depends upon how they utilize the public money in order to fulfill the trust people have put in them.

                                                       It is necessary to advance money by banks to the right people in order to maintain their profit margin. However, sometimes reckless advances are creating an adverse effect on the working of banks. 

                                                      It happens when corrupt and unskilled people advance public money to underserved people. Besides that excess and inexperienced staff also create difficulties for banks. The over-enthusiasm for developing the business of the bank also creates adverse problems. The most important reason for the bank crisis is the business condition prevailing in the market.

                                                      The problem also arises if decisions are taken in the bank on the basis of wasted interest or on political pressure instead of project viability and feasibility. 

                                                     Silicon Valley Bank, First Republic Bank, and  Signature Bank of America are the victims of maladministration. Even the Credit Swiss Bank of Switzerland is also now in trouble. The main reason is given that it may be due to the forthcoming recession but the decay in the administrative level of banks must have started a long time. 

                                                    The Indian Banks are also suffering due to the high percentage of nonperforming assets because of so many advances given on wasted interest and under political pressure. 

                                                      In short Bank, performance can be improved further if banks are given in the hands of the right men for the right jobs basis.

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