Banking is an industry that manages cash, credit, and other financial transactions. This industry also regulates processes such as life insurance, claims, insurance broking, retail banking, credit cards, underwriting, non-life insurance, relationship management, SME and corporate banking, loans, bank operations, and risk management.
The role of banks in the modern economy:
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Financial intermediary: Banks accept deposits, issue loans, and generate profit from the difference in interest rates paid to depositors and charged to borrowers.
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Facilitating payments: Banks process payments for goods and services on behalf of their customers.
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Guarantor role: Banks support clients by guaranteeing debt repayments when clients are unable to fulfill their financial obligations.
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Provider of agency services: Banks offer asset management and financial advisory services.
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Political role: Banks assist in implementing state policies that regulate and promote economic development.
Development trends in banking:
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Standardization and unification of banking regulations. National banking laws are increasingly aligned with global standards.
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Centralized regulatory framework. A unified structure for regulating and managing banking activities is being developed.
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Digital transformation. robotic process automation (RPA), chatbots, machine learning, and blockchain.
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Growing demand for financial advisory services. Increased focus on asset management, insurance, and estate planning.
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Financial globalization. Financial globalization is characterized by the deep integration of advanced economies into the global financial system, the expanding role of China in global finance, the strengthening financial connections of developing countries, and the growing prominence of both established and emerging international financial centers.
Top banks in the world:
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Industrial and Commercial Bank of China
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Agricultural Bank of China
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China Construction Bank
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Bank of China
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JPMorgan Chase
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Bank of China
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HSBC Holdings
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BNP Paribas
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Mitsubishi UFJ Financial Group
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Crédit Agricole
