These dimensions are explained below:
Internal Strategic Position
After the selection of variables the rating is assigned to each. After the addition of these variables taking the average. For example financial strength is explain below
Read more: MGT603 - Strategic Management - Lecture Handout 26
Related Content: MGT604 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Management of Financial Institutions
A bank is a commercial or state institution that provides financial services, including issuing money in various forms, receiving deposits of money, lending money and processing transactions and the creating of credit
A commercial bank accepts deposits from customers and in turn makes loans, even in
excess of the deposits; a process known as fractional-reserve banking. Some banks (called
Banks of issue) issue banknotes as legal tender. A commercial bank is usually defined as
an institution that both accepts deposits and makes loans; there are also financial institutions
that provide selected banking services without meeting the legal definition of a bank. Many
banks offer ancillary financial services to make additional profit; for example, most banks
also rent safe deposit boxes in their branches. Currently in most jurisdictions commercial
banks are regulated & require permission to operate. Operational authority is granted by
bank regulatory authorities who provide rights to conduct the most fundamental banking
services such as accepting deposits and making loans.
Banks have influenced economies & politics for centuries. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold.
For centuries, the banking industry only dealt with businesses, not consumers. Commercial lending today is a very intense activity, with banks carefully analyzing the financial condition of their business clients to determine the level of risk in each loan transaction.
Read more: MGT604 - Management of Financial Institutions - Lecture Handout 15