Role of Regional Banks in Globalised Economies Essay

Role of Regional Banks in Globalised Economies - Essay Example This process has opened the floodgates of knowledge-intensive, high quality products / services from the developed world to the developing countries and they in turn, are able to market their products / services, based on cheap & abundant skilled / semi-skilled / trained manpower, into the developed markets. In an ideal situation, all economies should benefit and the consumer should get best value for money. Global giants in the financial services sector conduct a range of operations spanning personal banking to investment advisory services, consumer financing to industrial credit, stock market operations in futures, options and derivatives, merchant banking, underwriting, treasury operations and the like. These services are extensively backed by technology. To the customer, these banks provide a pleasant experience – from the very ambience to the fast decision-making processes. This is in stark contrast to traditional banking mode, as practiced by the regional banks which wer e catering mainly to traders of agricultural products in the beginning followed by ‘directed credit’ as mandated by governments to agriculture and small-scale industries (Guruprasad). Industrial credit is a later development. But the new market situation altered the role of regional bankers significantly. Their growth rates and margins are decreasing, leading to a search for newer initiatives and strategies.