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Three Pillars of Effective Banking Sector Restructuring. Corporate Governance. Competition. Prudential Regulations and Supervision. Dimensions of Banking Sector Restructuring. Model of Commercial Banking – Two Tier System Competitive Model Segmented Model Sectoral Segmentation
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Three Pillars of Effective Banking Sector Restructuring Corporate Governance Competition Prudential Regulations and Supervision
Dimensions of Banking Sector Restructuring • Model of Commercial Banking – Two Tier System • Competitive Model • Segmented Model Sectoral Segmentation Regional Segmentation • Liberalization • Foreign and Domestic Entry/ Exit • Regulation of Banking Activities Interest rate Client base Product/ service range
Dimensions of Banking Sector Restructuring • Development of New, Private Commercial Banking • Substantial Crowding out Takeovers • Marginal • Government Orchestrated Rehabilitations • Privatization • Foreign (strategic) investors • Domestic investors
Dimensions of Banking Sector Restructuring • Corporate Governance • Inside • Outside • Regulation and Supervision • International Liberalization of Financial Sector • Enabling Environment • Real Sector Development • Macroeconomic Environment • Political Environment • Inter-relationship between Bank and Non-Bank Financial Institutions