BANKING

Banking is not what it used to be.In an important study ,Boyd and Gertler(1994)

pose the question,'Are bank dead?or are the reports grossly exagerrated?

They conclude not dead nor even declining, but evoling.The conventional monotask

of taking in deposits and making loans remain in different guises but it is not

only or even the main activity of modern bank.The modern bank is multifaceted

financial institution, staffed by multi-skilled personnel,conducting multitask

operation.Banks have had to evolve in face of increased competition both

from within the banking sector and without,from the non bank financial

sector.In response to competition banks have had to restructure,diversify,

improve efficiency and absorb greater risk.



Bank across the developed economies have faced three consistent

trends that have served to alter the activity and strategy of banking.

They are 1.deregelation,2.financial innovation and,3.globalization.The

development of the Eurodollar market arose out of a desire to circumvent

regulation in the USA.The term Eurodollar is genera tic terms for deposits

and loan dominated in a currency other than that of the host country.