International Banking Essay Example | Topics and Well Written Essays - 1500 words - 3

International Banking - Essay Example Banks, by their communally useful effort of converting temporary assets to standard and long-standing credits (changing maturities) get uncovered to liquidity hazards. Hence, the comprehensive banking catastrophe, which started in 2007 summer, has showed this peril and has pressed us to re-evaluate bank threat organization as a whole and liquidity risk specifically. As a result, this risk has gotten ignored until up to the present in errand of other hazards such as credit perils with market hazards. Actually, Basell I (1989) and Basell II (2005) expelled liquidity hazard control from their claim span. Transmission from financing liquidity hazard to marketplace liquidity risk does not involve a single direction. In fact, these dual risks can get jointly underpinning in a controlled system relating the spot to marketplace. Certainly, stock prices lower than their basic prices get instantly shown on the figure of banks balance sheets because of the spot to market (Evanoff 2007, 50).Thus, they get mandated to immediately streamline their balance sheets and discover themselves obliged to vend more resources cheaply to congregate solvency as well as capital dogmatic requirements. In this instance, banks get themselves entangled in hazardous descending liquidity curves. (Evanoff 2007, 50 bring to mind dual equilibriums. The foremost happens when marketplaces become liquid with good margin environment and painless access to funding for speculators, who as a result help out progress this liquidity via their actions. The next one takes place when bazaars become illiquid. Such raised margin necessities, restricts access to financing liquidity to investors who in the end offer smaller amount souk liquidity. Hence, this common strengthening of financing illiquidity with marketplace illiquidity gets mirrored in liquidity curves, which can be margins curves or loss curves. It refers to the plan

CRM Essay Example | Topics and Well Written Essays - 1000 words

CRM - Essay Example 1. Introduction Is the customer always right? The customer may be the king, but is it worth pursuing to retain all the customer accounts? These are some of the dilemmas an organisation face, especially when a customer relationship have entered a cul-de-sac. The basic premise of customer relationship management is about attracting, developing, maintaining and retaining profitable customers over a period of time (Massey et al., 2001). Figure 1: The basic premise of customer relationship management Adapted from source: Massey et al., (2001) 2.Theoretical underpinning Payne and Frow (2005) delineate functional dimension of CRM and stated that it concerns with creating improved shareholder value through development of appropriate relationships with key customers and customer segments by making a fusion of the potential of relation marketing strategies with IT to create profitable, long-term relationships with customers and other key stakeholders. ... re 2: The service profit model suggested by Bentum and Stone (2005) Source: (Hussain et al., 2009, p.120) From the figure above, the service profit chain (SPC) is evident and urges that the value creation process is indeed a horizontal cross-functional process, rather than standalone views contained within each function (Heskett et al., 1994). Behind the theoretical underpinning of CRM, a major vector is to be able to fight competition; and an enterprise after implementing the CRM system should be profitable and add to shareholder’s value. However, at the core of the CRM remains the customer which must be attracted, developed, maintained, and retained in a profitable way. But does it mean that all the customers to be retained for as long as possible? Should the organisation pursue it with obsession? Saubert’s (2011) case study on â€Å"Which accounts are worth keeping?† provides a clue to this question. Saubert suggests that there should be a fruitful communion o f attrition propensity and profitability models (Saubert, 2011). Studying in the context of Australian Banks for credit card holders, Saubert opine that while devising customer retention strategies, firms should weigh the value earned from each customer. The firm’s CRM strategy needs to be guided by answer to two fundamental questions: Figure 3: Two fundamental question that must guide a firm's CRM strategy Adapted from source: (Saubert, 2011) Saubert (2011) opines that while firms usually strive to increase customer loyalty and reduce attrition but tend to overlook these two questions. The Performance Improvement Council (2008) states that in an ideal world, loyal long term customer relationships would eventually evolve towards partnerships and quotes Michael LeBoeuf, author of How to Win Customers & Keep