Question

expliquez la transformation pratiquée par les banques ? quelles sont ses avantages et ses limites ?

Answer 1

Question.explain the transformation practiced by banks? what are the advantages and its limits?

1) digital transformation :

2) cash to less cash and cashless integration of digital technology in all area of business or operations

3) financial literacy and inclusion :through banking correspondent and technology , by providing different product to costumers.

4) institutional :merger of banks to make them systemically important banks and thus increasing risk taking capacity and led the way to complete basel norms and comes out from NPA problem.

5) structural reforms°:through government plans like indradhanush plan in India which includes Recognition,( asset quality review) recapitalisation( diffuse money in banks to make their balance sheet cleaner and comes out of npa) , resolution( insolvency and bankruptcy process) and reform(merger of banks ,capacity building).

Advantage:

1) NPA reduce

2) banking access increasing in remote and backwards area

3) ease of doing business

4) cost of operations reduce

5) banking system reputation increasing thus credit rating increasing at global level attract new fdi, fpi in the country.

But some limitations like lack of political will increasing frauds and corruption in banking system, lack of monetary policy transmission and thus public is not benifitted from monetary stimulus or package of government, digital divide and gap among the population etc.