Future changes in the banking industry
The banking industry is one of the most important parts of the financial services sphere because the economy of a country depends in a way of it as money are considered „the blood” of an economy and all the transactions are made through banks. Thus the bank is responsible for the regulation of the money circulation in a country. It also renders various services to the economical agents making a profit on a hand and on the other hand helping on the development of economy of the country.
But as every industry, banking sector also has ups and downs (called financial crisis). As we can see nowadays the banking industry suffers a world financial crises which will have a bad effect not only on banking industry, but also on other spheres of the economy as well. Thus, the small, weak or new banking institutions will not be able to face these challenges, or continue to hold their current positions, unless they decisively establish entities that have the ability to maintain their existence.
Due to this world financial crises banks will lose many clients, will not be able to give easily loans and it will take some time until they recover. Another negative result for borrowers will be the increasing interest rate and security conditions. This will influence very negatively the ones who want to borrow because not everyone will agree with this conditions or will not have the possibility to take such an expensive loan.
Additionally, banks will have to enhance their policies concerning the managing and supervising of various banking risks, because of the increasing use of advanced systems of electronic banking operations and applications in areas of information technology. Banking management can thus achieve an optimum use of their financial resources, improve their services and products and strengthen their systems of internal supervision over all aspects of banking activities.