Finance Banking

Advantages Of Regions Online Banking


Although the financial recession affected a large number of banks, especially when it comes to liquidities and short term cash, it seems like the profits of the banks were not affected. This is also because of the regions online banking, a new concept that attracts more and more corporate clients. The international banks continue to obtain profits, as the commercial relationships between companies are intermediated by banks, and those relationships generate large commissions for the respective banks. 


In the actual banking conditions, the economists expect for the number of acquisitions and fusions between companies to be reduced, so it is expected for those companies to continue their electronic operations using the regions online banking system. the banking market is still dominated by the international banks and financial institutions, companies that obtain profits from acquisitions on local markets. This is how a completely new regional market appeared, with a few branches and some perspectives for local operations. According to studies, the market share of those companies is significant, although their presence on the market is discrete. In other words, the investment banks using the regions online banking are those that don’t advertise on TV, but they have the greatest influence in the banking world. 


As a result, the recent efforts for fusions and acquisitions were directed on new markets and specialized segments, while in the actual global context, the growing strategies will probably focus on an organic growth and new branches. The lack of liquidities is considered a problem by the commercial and retail banks, but when it comes to investment banks, this is considered a major advantage. the growing cost of financing generated by the new international context and the rationalization of banking networks could contribute to the reconfiguration of the international banks. Those are the results of a study conducted on the banking market in Europe and America.

The perspectives for regions online banking are also good. it seems like the economic activity will maintain the current dynamic, despite the growing price of risk at the international level. The main risk is the economic dependence of capital entries, but even in a scenario that implies a reduced quantity of capital, the growing of the regions online banking system is predicted to be of more than 4 %. 

Tips and comments

The inflation implies a high pressure over the European countries, because of the high percentage of food and oil products in the daily consumption basket of the population. in other words, as long as people spend the majority of their money on food and transportation, the inflation will create pressure over the banks. However, the real incomes of the population are now increased, and it is also a stimulant for the future growth of the economy.

The degree of financial intermediation is maintained at a moderate level, with growing volumes of about 25 % during the last two years, and the volume of approved credits is higher than the volume of approved deposits. An ideal banking model implies for the banks to cover the external needs of financing, and this risk is partially compensated by the presence of investment banks in the real economy.   

By Stanculescu Mihai Bogdan, published at 01/06/2012
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