This short study provides a brief comparative analysis of Deutsche Bank and Bank of America through strategic management. Generally, banks are involved in the most volatile and uncertain business world. Banking history suggests, that banks suffered enormous losses due to lack of proper strategic management. Beltratti and Stulz (2009) observed poor and flexible management, and very low risk appetite which caused banks serious liquidity and financial issues. Banks are recommended to have strict management, and high-risk appetite in order to avoid any possible negative financial consequences. In banking industry, proper strategic management and its application and implementation is very important and integral.
Inhaltsverzeichnis (Table of Contents)
- Banking Industry and Effective Strategic Management
- A comparative analysis of Deutsche Bank and Bank of America
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text aims to explore the crucial role of effective strategic management in the banking industry, particularly in the context of the 2007-08 financial crisis. It analyzes the impact of regulatory changes and the need for banks to adapt to a volatile and uncertain business environment.
- Strategic Management in the Banking Industry
- Impact of the 2007-08 Financial Crisis
- Regulatory Changes and Compliance
- Comparative Analysis of Leading Banks
- Internal and External Factors Influencing Bank Performance
Zusammenfassung der Kapitel (Chapter Summaries)
- Banking Industry and Effective Strategic Management: This chapter delves into the importance of strategic management in the banking sector, emphasizing the need for robust risk management and strict managerial structures to prevent financial disasters. It discusses the impact of regulations like the Dodd-Frank Act and the Volker Rule on the US banking industry and their influence on global banking practices.
- A comparative analysis of Deutsche Bank and Bank of America: This chapter provides a comparative analysis of two leading global banks, Deutsche Bank and Bank of America, highlighting their respective strategies, competitive advantages, and challenges in the face of a dynamic and uncertain financial landscape.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this text include: strategic management, banking industry, financial crisis, regulation, risk management, corporate governance, comparative analysis, Deutsche Bank, Bank of America, internal and external resources, competitive advantage.
Frequently Asked Questions
Why is strategic management integrally important for banks?
Banks operate in a highly volatile environment. History shows that a lack of proper strategic management and low risk appetite can lead to severe liquidity issues and financial collapse.
How did the 2007-08 financial crisis change the banking industry?
The crisis led to stricter regulations, such as the Dodd-Frank Act and the Volcker Rule, forcing banks to implement more robust risk management and governance structures.
What are the differences between Deutsche Bank and Bank of America?
The study provides a comparative analysis of their strategic approaches, internal resources, and how they adapted to the regulatory changes in their respective markets (Europe vs. USA).
What is the significance of the Dodd-Frank Act?
The Dodd-Frank Act is a major piece of US legislation designed to monitor systemic risk and restrict certain types of speculative investments by banks to prevent future crises.
Why is "risk appetite" a key factor in banking strategy?
A properly defined risk appetite helps banks balance profit-seeking with financial stability, ensuring they don't take on excessive risks that could lead to insolvency.
- Quote paper
- Muddassar Rasheed Malik (Author), 2012, The Banking Industry and Effective Strategic Management, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/452263
