1. be almost as large as the entire GDP

1.     
The Forbes global 2000 is an annual top
2000 public companies ranking published by Forbes magazine. Companies from The
People’s Republic of China and United States of America comprise forty percent
of the list.  American organisations
account for 565, followed by China and Hong Kong, which is home to 263 companies.
The world’s largest companies from 58 countries are represented. Most of the
companies in top 25 belong to financial sector predominantly to the banking
sector.

 

Banking
is an industry that handles cash, credit and other financial transactions.
Banks provide a safe place to store extra cash and credit. They offer savings
accounts, certificates of deposit and
checking accounts. Banks use these deposits to
make loans. These loans include home mortgages,
business loans and car loans. In simple words, Banking can be defined as the
business activity of accepting and safeguarding money owned by other
individuals and entities, and then lending out this money in order to earn a
profit.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

The
rise of purchasing power around the emerging economies have fast-tracked the
growth of banking service sector. Out of top ten, six belong to banking and
financial sector like Bank of America, JP Morgan chase, industrial and
commercial bank of china, agricultural bank of china.

From
1980s, the banking business multiplied. If you count all the assets and
the securities they
created, it would be almost as large as the entire GDP of USA. During that
time, the profitability of banking services grew faster. Banking represented 13%
of all corporate profits during the late 1970s. By 2007, it represented 30
percent of all the profits. The largest banks grew the fastest. The ten largest
banks share of all bank assets increased from 26 to 45%. Their share of
deposits also grew during that period, from 17 to 34%.

The growth of an
economy plays a vital role in the financial stability of that economy. Let’s
compare the case of India and Japan. The economic position of Japan is shaky as
the country recently came out of recession. The banking sector has taken the
major hit during this period. The interest rate offered by Japanese banks are
less than 2-3% and surcharge levied of services are high. The scenario is
exactly opposite in India. Due to fast growth rate and high purchasing power,
there is sort of competition within the banking sector to attract maximum deposits
for themselves. The interest rate in India is 8-9% to even double digit.

x

Hi!
I'm Marcella!

Would you like to get a custom essay? How about receiving a customized one?

Check it out