Effects of Corruption on Economic Growth Essay

Corruption has been around for a very long time and will be around in the future unless governments can figure out effective ways to combat it. This is not going to be easy. Corruption in any form is treated as an incurable disease cause of many social and economic evils in the society and it damages the moral and ethical fibers of the civilization .Indisputably, it is correct that corruption breeds many evils in the society & once corruption start take place ,slowly and gradually whole country passes through its net and it becomes after some time incurable diseases .from the economic point of view ,there seem to be no clear cut correlation between corruption and the economic growth of a country. There may be some social maladies like inequality of income among the people ,moral degradation of people due to the prevalence of corruption ,the parameter of economic growth which are taken on percentage or an average basis are entirely different To begin with, in the presence of corruption, businessmen are often made aware that an up-front bribe is required before an enterprise can be started and that afterwards corrupt officials may lay claim to part of the proceeds from the investment. Businessmen therefore interpret corruption as a species of tax–though of a particularly pernicious nature, given the need for secrecy and the uncertainty that the bribe-taker will fulfill his part of the bargain–that diminishes their incentive to invest. Empirical evidence suggests that corruption lowers investment and retards economic growth to a significant extent. Moreover, when it takes the form of tax evasion or claiming improper tax exemptions, corruption may bring about loss of tax revenue. What is more, the allocation of public procurement contracts through a corrupt system may lead to lower quality of infrastructure and public services. Then, Corruption may distort the composition of government expenditure. Corruption may tempt government officials to choose government expenditures  less on the basis of public welfare than on the opportunity they provide for extorting bribes. Large projects whose exact value is difficult to monitor may present lucrative opportunities for corruption. A priori, one might expect that it is easier to collect substantial bribes on large infrastructure projects or high-technology defense systems than on textbooks or teachers’ salaries. So far Indian economic is concerned the slow progress is the result of lack of decision making at higher level .Many politician who take money but could not enforce their will because of powerful lobby of bureaucrats at many place and a democracy like India ,voice of media ,voice of opposition could suppress the wish of the leader . India’s economic growth on an average 6 % GDP despite considerable corruption is because of the stability and the liberalized measure taken by the present govt., gradual privatization of various sector, reducing bureaucratic intervention in routine work & other measure adopted by govt. In brief it can be concluded that corruption and economic growth has no clear correlation .strong institution, political stability, fast and reasonability in decision taking are some of the requirement for fast economic growth.

The Eyes of the Dragon essays

The Eyes of the Dragon essays The theme of the book, The Eyes of the Dragon, by Stephen King, is to stick to one's beliefs no matter what happens and always do what one knows is right. Don't give up on oneself; anything is possible. King Roland was the noble king of Delain. He was known as Roland the Good. He was, by far, not a bad king, though he was really not a great king. He meant no harm and was successful, but whenever he meant to do great things, he seemed to be unsuccessful. Roland, king of Delain, had two sons and had done his best to raise them without a wife. Peter, the oldest, was much like his father. He was successful at avoiding harm of the kingdom. In addition, he seemed to be more successful at the great things he attempted. Even as a little boy, Peter was loved by the kingdom, and many were looking forward to his reign as king. When Peter was merely a boy, he stood up against grown men for what he believed in. This was why the kingdom loved and appreciated him. In one instance, Peter was passing through the stableyard when he saw a lame horse about to be killed. Peter commanded Yosef, the palace fixture, to stop. After arguing, Peter managed to convince Yosef to give Peter one hour to find a veterinarian. Peter was to prove to Yosef that this horse would not die if taken care of. Just short of an hour later, Peter and the veterinarian returned. The veterinarian listened closely and agreed with Peter. The horse would never be a working horse again, but it would certainly make a great pet for Peter. This was only the beginning of Peter's wisdom and only a hint of the respect he would soon earn. Thomas was a little different. He was very quiet, so no one was really sure of him. He did mysterious things. The citizens of Delain were glad Thomas was the younger son, for no one wanted Thomas as king. Anyone who attempted to, could befriend Thomas and earn his complete reliance. This great weakness caused the downfall of Dela...

Pelagornis - Facts and Figures

Pelagornis - Facts and Figures Name: Pelagornis (Greek for pelagic bird); pronounced PELL-ah-GORE-niss Habitat: Skies worldwide Historical Epoch: Late Miocene (10-5 million years ago) Size and Weight: Wingspan of 15-20 feet and weight of 50-75 pounds Diet: Fish Distinguishing Characteristics: Large size; long, tooth-studded beak About Pelagornis One of the enduring mysteries of natural history is why the flying prehistoric birds of the Cenozoic Era never quite matched the size of the pterosaurs, or flying reptiles, of the preceding Mesozoic. The late Cretaceous Quetzalcoatlus, for example, attained wingspans of up to 35 feet, about the size of a small planeso while the late Miocene Pelagornis, which lived about 55 million years later, was still impressive, its wingspan of only about 15 to 20 feet places it firmly in the runner-up category. Still, theres no overstating the size of Pelagornis compared to modern flying birds. This soaring predator was over twice the size of a modern albatross, and even more intimidating, considering that its long, pointed beak was studded with tooth-like appendageswhich would have made it an easy matter to dive into the ocean at high speed and spear a large, wriggling prehistoric fish, or perhaps even a baby whale. As a testament to this birds evolutionary fitness, various species of Pelagornis have been found all over the world; a new fossil unearthed in Chile is the biggest yet. So why couldnt prehistoric birds match the size of the biggest pterosaurs? For one thing, feathers are fairly heavy, and covering a larger surface area might have made sustained flight a physical impossibility. And for another, bigger birds would have had to nurture their chicks for longer periods of time before their hatchlings achieved maturity, which may have put an evolutionary brake on avian gigantism after Pelagornis and its relatives (such as the comparably sized Osteodontornis) went extinct, probably as a result of global climate change.

The drivers of Taiwan's economic growth between 1949-1990 Thesis

The drivers of Taiwan's economic growth between 1949-1990 - Thesis Example There was nothing supernatural about them. These include the reason for the US aid, the training of the workers for the German optical lens factory and the infrastructure development by Japan to support its war efforts. In addition to these existing benefits, the decisions and actions of the policy makers fetched the unexpected results. While they formulated the policies they themselves were unsure of the consequences. Reforms were made in every sector and most importantly the policies were reviewed with changes in the business environment. Government intervention was gradually reduced as the economy matured. However, two factors that developing nations should be cautious of, include environmental degradation that comes with economic growth and unhealthy nationalism. Besides, it is not possible to replicate the strategy that Taiwan followed as not every country has the same endowments such as natural resources and human capital. Taiwan could experience growth because of the endogenou s factors. Local factors have tremendous influence on growth and progress and this is evident from the case of Taiwan. The study concludes that the economic growth in Taiwan was the unintended result of innumerable efforts. Table of Contents CHAPTER I INTRODUCTION 1.1 Background 1 1.2 Motivation for the study 2 1.3 Research aims and Objectives 3 1.4 Organization of the study 3 CHAPTER II LITERATURE REVIEW 5 2.1 Introduction 5 2.2 Economic Growth Theories and models 5 2.3 Economic and Social Growth relationship 8 2.4 Social Capital 8 2.5 Measures of Progress 9 CHAPTER III RESEARCH METHODOLOGY 11 3.1 Research Philosophy 11 3.2 Research Phenomenon 11 3.3 Research Design 11 3.4 Research Strategy 12 3.5 Justification for use of Secondary Data 13 CHAPTER IV FINDINGS 15 4.1 Role of Chiang Kai-shek and KMT 15 4.2 Factors of Growth 15 4.3 Stages of development 16 4.4 Land reforms 17 4.5 Export-led growth 18 4.6 Government intervention 19 4.7 Financial reforms 20 4.8 Existing technology 20 4. 9 Supporting the Private Sector 21 4.10 Educational reforms 22 4.11 Foreign aid 23 4.12 Infra structure development 23 4.13 Miracle or unintended results of human efforts 25 4.14 Lessons for Developing Nations 26 CHAPTER V CONCLUSION & RECOMMENDATIONS 29 5.1 Conclusion 29 5.2 Recommendations 31 References 32 Tables and Figures Figure: 2.1 Stages of Modernization 7 Table 4.1 Measurement of Economic Performance 25 CHAPTER I INTRODUCTION 1.1 Background Economy and society are interlinked; the growth of a nation or its economy depends upon the political factors but more importantly the social factors. This is because the society or the people of the society form the regulations and the strategies, which are again based on the demands of the common people, on the needs of the society and on the growth prospects of the nation. In other words, economic growth impacts the society in every respect. This has been endorsed by Blair and Carroll (2008) that social relationships networks can shap e local economies. The societal factors can be held responsible for the closure of plants and manufacturing units in one region and opening of some units in another region. Again, if the economy is not doing well, unemployment rises which forces people to migrate to other regions. The regions where these people migrate need manpower because they have shortage of unskilled labor or they prefer to employ cheap migrant labor. Hence, in all

John F Kennedy Civil Rights Address Research Paper

John F Kennedy Civil Rights Address - Research Paper Example worldwide struggle towards equal rights and goes on to argue that all Americans irrespective of their color should be offered equal treatment in places of public accommodation. He purports that every American has a moral obligation to be treated equally. It can also be observed that rhetorical devices such as the choice of diction, imageries, statistical data, and tone contribute to the persuasiveness of the speech. For instance, the use of phrases such as â€Å"ought to be possible† and â€Å"ought to have the right† clearly emphasize this sense of moral responsibility towards equal treatment and freedom. This has been aptly suggested by Newman when the author states: â€Å"the repetitive use of "it ought to be possible" is an effective way to point out the different levels of freedom that restricted the average Negro citizen† (Newman). Kennedy also seeks the help of statistical data (such as ‘one-half’, ‘one-third’, ‘twice as muc h’, and ‘half as much’) to convince his audience the white-black disparity that governs the society. Similarly, in his speech, Kennedy offers a number of instances where unequal treatment and discrimination is shown toward the Negros. These instances are capable of creating so many vivid images or mental pictures in the minds of the audience. President Kennedy then directs his audience towards the depth of the issue and leads the audience to think about the possible solutions. He makes it clear that segregation and discrimination is prevalent in almost all states of America and calls for the need to frame new legislations to tackle the issue. However, he warns his white audience that the nation is ‘confronted primarily with a moral issue’ and exhorts everyone to ask their conscience whether they are able to grant ‘equal... The intention of this study is "Civil Rights Address" by John F Kennedy. as a landmark in the nation’s pursuit towards abandoning racial discrimination and segregation. All throughout the speech, Kennedy persuades his listeners/audience to ensure civil rights, racial equality and equal treatment in the nation. The address is quite persuasive in nature and President Kennedy has successfully employed various rhetorical strategies all throughout the speech. No doubt, the speech appeals to the ethos, logos and pathos of the audience; stylistic features such as the use of imagery, appropriate language, and tone enhance the credibility and persuasive nature of the discourse. The speech can also be understood as President Kennedy’s attempt to defend and justify his controversial decision to admit two qualified Negroes into the University of Alabama in Birmingham. One also needs to keep in mind there were ongoing demonstrations, parades and rallies for equal civil rights within the nation. The speech clearly points out two key issues that haunt the American society-racism and prejudice. Thus, the speech offers the audience a thorough understanding of the speaker’s concern over the current issue of segregation in the nation. This paper tries to identify the specific rhetorical aspects of Kennedy’s speech and in doing so the paper seeks to draw evidences from the address as well. Kennedy's â€Å"Civil Rights Address† blends a variety of rhetorical elements and it is this address which paved the way for equal civil rights in America.

Was the use of atomic bomb on japan justified Essay

Was the use of atomic bomb on japan justified - Essay Example But was Truman’s decision justified or was ill informed? A controversial event in history that has divided scholars right in the middle, the use of the Atomic Bomb was but a justified decision that spared the United States an estimated 250,000, perhaps more, sure fatalities in there planned invasion of Japan in addition to millions of Japanese [soldiers and civilians alike] destined for a bloody fight-to-the-death battle in defense of a beloved fatherland. The True Story While the weight of the fateful decision fell right on the shoulders of Truman, the origins of the weapon began with the Roosevelt administration’s fear of a parallel development of the same by Germany. Leo Szilard’s confidential letter to the then President Franklin Roosevelt, signed off by his longtime friend and collaborator Albert Einstein, outlining Germany’s concerted efforts on nuclear weapons formed the foundation of the Manhattan Project [S-1], â€Å"one of the largest, best-kept secret, massive resource consuming, scientific undertakings ever witnessed in history† (Walker 311-312). Indeed, even Truman, the then vice president had no knowledge of the project and only learnt of it in office. Though actively engaged in atomic research, German scientists, as it would later turn out right after Germany’s surrender, were far from reaching a fissionable chemical combination that could deliver results rivaling the United States’. Japan’s similar initiatives were thrown into disarray in April 1945 with a B-29 raid on Tokyo facilities leaving anything of the sort inundated. (Frank 252-253). The fall of the previously Japanese controlled Marianas Islands early in the campaign gave the United States formidable footholds of bringing the war closer home to the remaining Japanese strongly-held islands. With surrender heavily disdained, reinforcement directives from Imperial General Headquarters [IGHQ] detailed in the â€Å"Plan for the Conduct of Future Operations† went out on the 24th July, 1944 with four points: 1. Patriotic defense of the Philippines, Ryukyu, Kurile, Formosa, Japan Islands and the entire Japanese homeland from the shoreline right into the interior. 2. Massive annihilation of the Allies by sea, land and by the remaining air power for any attempted advance through the United States’ planned amphibious assault to the crucial areas [the â€Å"Sho-Go† Operations]. 3. The last two points called for the prevention of American B-29 aircraft attacks operating from China to ensure better cover [overrunning China bomber bases to open up continental railroads as an alternative route to their Southern Resources Area]. 4. Identifying alternative southern sea routes [particularly to the China Coast] to safeguard important military shipments (Bradlley 189). With the new SHO operations that basically enlarged mobile defense writ, Japan hoped to gain decisive victory no matter the beachhead attacked by the enemy. SHO-1 and SHO-2, the battles of Philippines and Formosa-Ryukyu were planned for august; followed by SHO-3 and SHO-4 in the home islands and Hokkaido scheduled for October 1944. Having identified possible planned landing bases by the invasion forces, the supposedly defeated Japanese strategically stationed themselves to meet the visitors head-on at an equal strength. As a tactical approach, they [Japanese] planned to abandoned direct combat with the powerfully

Globalisation In The Banking Industry Finance Essay

Globalisation In The Banking Industry Finance Essay Banking industry is one of the crucial industries that influences the global economy. It is the industry that encourages the growth in investments by its funding. They are so many factors that drive change in the industry. Drivers of globalisation in banking industry are discussed below. Drivers of globalisation The drivers of globalisation are explained according to the yips model. Source: Based on G. Yip, Total Global Strategy II, FT/Prentice Hall, 2003, chapter 2. Applying this to the banking industry. Most particularly retail banking. The important factors that drive globalisation in the industry are issues regarding legal, customer relations and wishes, technological advancement and the crucial thing is profit. Legal regulations as a driver Operating globally may bring in a number of issues regarding legal that is with the laws of the particular country in which a bank is operating. There may be organisational problems within the bank or legal concerns. Global operations need good leadership with which they are able to respond to the government policies. The bank organising globally has to respond individually to the local governments regarding regulations or deregulations. This is essential component in the business because they have to change the interest rates and taxes on the services they provide to the customers. This effects their business with the customers. It doesnt mean only the taxes and interest rates counts when dealing with regulations and deregulations. Payments directive and financial services action plan in UK is one among them. Source: FUTURE OF BANKING IN A GLOBALISED WORLD, Chris Skinner, 2007. Mergers and acquisitions are highly effected by the regulations. Mergers may happen between two national banks or between two international banks. The terms and conditions followed at the time of merging depend on the regulations that are applied in a particular country. For instance consider the case of laws that guide mergers and acquisitions in European Union are related to the economical conditions of the joining partners. They state that the turnover of the individual participant should be more than 250 million Euros and their turnover together should be more than 5 billion Euros. The individual turnover of the bank operating abroad should be more than one third of the turnover of the bank. These regulations are concerned about the financial stability of the banks after the merger. If the banks are willing to merge, their strong financial conditions resist any adverse effects that come under their way. But in the case of small banks, those do not satisfy the conditions of merger , these regulations suffer them a lot. There were cases where small banks merged to form a big bank. But these regulations resist them from doing so. This is the case where legal activities control the banking industry. Source: www.nbs.sk Customer requirements as a driver Planning according to the customers preferences and delivering services up to the customers satisfaction has become the main formula for the success of the banks. It is important in every business to find out an influential customer, that is a customer who brings in more profits to the bank and also who inspires others to join the business with the bank. If that customer is met with all his requirements in banking, he will become the true ambassador for the bank. Of course the needs of the customers in dealing with the bank all over the world are same. They need quality of service and security for their savings. However the requirements of an influential customer vary according to his willingness and trust to invest in a bank. There may be social and cultural factors that influence the customers interests and requirements. Source: Exploring corporate strategy 7th edition, Gerry Johnson, kevan Scholes, Richard Whittington, 2004 Technology as a driver Internet has become a great boom to the banking industry. It gave the industry the opportunity to serve better to the customers and to develop cross-border communication with the employees and customers as well. It helps in providing privilege customers the advanced banking services, promoting services for new customers, making customer retention by continuously maintaining customer relations etc. Source: Internet marketing, David Chaffey, 2006 On the other hand, internet banking has raised security concerns about transfer of money online and third-party deposit services. To the customers using internet fraudsters send mails asking for account details and passwords pretending to be like bankers. The customers those respond to the mails will be targeted to get money. These types of actions alerted the banks to develop technology to counter the actions. Source: http://news.bbc.co.uk/1/hi/technology/7091206.stm Profitability as a driver Obviously the ultimate aim of any bank is to make as much profit as they can. Generally to gain profits they concentrate on savings of the customers. They plan converting the short term savings of the customers into profits that yield more profits. In retail banking the long term profit yielding products for the banks are fixed deposits, house loans etc. Source: The business environment 5th ed, Ian Worthington and Chris Britton, 2006 In this present economic downturn of the world, the banks are facing the worst situation in the decade. To face these adverse effects the central banks of almost all the countries started repair work to fuel the economy by decreasing the interest rates there by encouraging the investors to do business with the banks. Source:http://www.guardian.co.uk/business/interactive/2008/oct/21/creditcrunch Localisation Localisation in case of banking industry means designing itself according to the rules and regulations of a particular country. Generally countries demand for localisation irrespective of the foreign bank, as they do not want to be dominated. Retail banking is one of the industries that undergo localisation primarily. However localisation is benefiting the banks in having a wide range of products globally there by analysing the customers tastes and concerns. It helps them to gain information regarding customers needs to be met locally. In recent days local governments are deregulating the rules to boost globalisation. Source: Global strategic management, Philippe Lasserre, 2002 ENVIRONMENTAL INFLUENCES Any industry operating globally has so many factors that influence it in the external environment. Political Governments decision has an influential change in the prospects of the banking industry in a country. Governmental decisions have been a more important factor for the globalisation of the banking industry. Political stand over allowing the foreign countries to do business in their countries decides the extent of entry barriers into the country. Source: Corporate Strategy 4th ed, Richard Lynch, 2005 Economical Downing of the inflation is the main factor that reflects the fall in the economical condition . The one of the factors for decline in the economy are lower inflation occurring gradually. The one of the reasons for the decline in the retail price index excluding mortgage interest rates from 5.5 % in September to 4.7 % in October clearly states that the drastic situation faced by the banks. Inflation CPI down to 4.5%, RPI down to 4.2% Annual inflation rates 12 month % change Source: http://www.statistics.gov.uk/cci/nugget.asp?ID=19 The central bank decreases interest rates which in turn reduces the interest rates of all the banks funding mortgages. Bank of England is planning to cut its interest rates drastically to 2 % as when it was in the initial days. Source: http://www.ft.com/cms/s/0/4bd8c730-c16b-11dd-831e-000077b07658.html?nclick_check=1 Social Social trends in the banking, which means the sections of population those who utilise the banking products are essential in planning a strategy for the customers. For instance more than half of the people of Britain are aware of the banking products through dailies, televisions etc. Awareness and individual requirements of the customers are essential to plan a strategy for a bank. With the increased technology the banks are effectively communicating with customers, media and investors. In this way banks are always observed by the society in all means. Source: http://www.ginns.info/Retail%20banking.pdf Technology Technology is proven to be the best tool for the globalisation in banking industry. It plays a vital role in providing financial services to the customers. With use of sophisticated technology, the concerned bank can be able to find out the preferences of the customers. Basing on the preferences of the customer, the services are advertised for him through the mails etc. Also investing in ATM technology took the pain and pressure away from the banks. Now it is easy to access money from pay points etc. The customer is no need to go to bank stand there in queue for hours together to do transactions. Source: FUTURE OF BANKING IN A GLOBALISED WORLD, Chris Skinner, 2007 Legal Regulations of the banking system is mainly undertaken to control the financial conditions of the banks there by decreasing the domination of the foreign economy on the country. There are different ways in regulating the banks. UK and US banks follow risk based system to regulate the banks. Source: Banking regulations of UK and US financial markets, Dalvinder Singh, 2007 Opportunities and threats There are many opportunities of the banking industry. For instance the euro currency offers less cost borrowing or the chance to provide new debts to a large number of investors. According to the international monetary systems governments of different nations undertake rules that will influence firms. The financial position and the opportunities abroad attract the organisations to do business in their countries. The foreign exchange market that are used by many organisations provides the opportunity to gain profits. Source: International business 4th ed., Alan M.Ruman, Simon Collinson, Richard M.Hodgetts , 2005 Threats to banking industry are mainly related to technology. The technology used by the fraudsters by dominating the banking technology troubles the customers which in turn causes damages to the reputation of a bank. If a bank loses reputation in terms of security, its trustworthiness among the customers decreases. This damages the brand value which results in decrease in customer retention. Source: http://www.icc-ccs.org HSBC Hongkong and Shanghai Banking Corporation Limited founded in the year 1865 is one of the top banks in the world. It holds operations in nearly 85 countries all over the world. Its headquarters is located in the London. Strengths It has the shareholders number of nearly 2, 00,000 in 100 countries. They need different services and diversified requirements. Having dealt with all the diversified customers world wide, it is capable of estimating consumer tastes and concerns. Instead it confidently advertises itself as The Worlds Local bank, which reflects its adaptability to the local needs and cultures. It whole heartedly responds to the individual customer from which it gains required knowledge to serve the other customer with same needs. The awards and rewards it achieved are the measurements for its sincere contribution to the customers. HSBC won awards in all most all categories that are responsible for the banks success. The list of awards is given below HSBC generated revenue of 87,601 million dollars in the financial year that completed in December 2007. It was 25% high than previous year and the operating profit was 22,709 million dollars which was 6.9% high when compared to previous year. Net profit was 19,133 million dollars with an increase of 21.2% on 2006. The most of the profits it gained were from the developing economies. Source: http://www.marketresearch.com/product/display.asp?productid=1907489g=1 With the global experience it has, it can deliver a perfect solution for the complex supply chain network of the customer utilising HSBCs talented resources. Having well versed in utilising sophisticated technology, it follows online dealing with customers rather than going on papers. High level of information exchange can be done with speed and accuracy at the same time cost-effective measures are indulged in their business. Source: http://www.hsbc.co.nz/nz/corp/trade/eservices/supplychain.htm Weaknesses Even though it is a well established brand globally, it realised lately the advantages of performing under one brand name. The action was taken place in the year 1998. Until then it used to perform under various names in various countries. This might had created confusion among its customers who thought that their strong local brand was being taken over by some foreign bank. This misunderstanding caused some considerable loss to the bank. It suffered slight stagnation of revenue in 2006 when compared to the previous year due to increase in bad debts. Source: http://answers.google.com/answers/threadview/id/782667.html Financial analysis Here the financial analysis of HSBC is done by comparing three months and nine months profits with that of the previous year that ended in September 2006 respectively. Finance and other interest income lost by 727 million dollars and 1483 million dollars respectively. On as a whole it got 271 million dollars loss where it was 1,102 million dollars for the same period of three months that ended in September 2006. On the other hand it recorded 1,461 million dollars loss when compared to that of nine months that ended in Sep 2006. Source:http://www.hsbc.com/1/PA_1_1_S5/content/assets/investor_relations/hfc2008form10q_3q.pdf Competitors The main competitors of HSBC are Barclays Citigroup Royal bank of Scotland Barclays Barclay has 1,700 branches in UK alone and around 2,000 branches in Europe, Africa, Asia and the America. The bank also contributes financial products, corporate finance etc. It is one of the largest investing companies operating under the name Barclays Global Investors. In this year it owned North American investment banking and Lehman brothers for approx. one billion pounds. Citigroup It is one of the large financial companies in the world with 3,000 branches in America and Canada and more than 2,000 in several parts of the world. It is the first American bank to own 1 trillion dollars valued assets. Due to the financial downturn it faced in 2007 its CEO Chuck Prince left the job. Royal bank of Scotland It operates under the names of Royal bank of Scotland and NatWest. It has nearly 2,300 UK branches offering financial services. In the America it has Citizens Financial which is one of the USs largest foreign-managed bank. Following the shareholders demand UK government took 60 percent of stakes in the recent days of 2008. Source: http://www.hoovers.com/free/ Conclusion Here in this work the environmental influences on the banking industry are discussed. The main constituents in the banking industry are customer satisfaction, technological advancements, regulations and deregulations and most importantly profits. These four factors act as drivers of change in the banking industry. Out of all without losing the identity the banking industry should be able to adapt changes that occur locally. To discuss more extensively HSBC is considered as an example and the environmental changes on the bank are discussed. Out of all observations the bank is performing very well.