Finance and Growth of the Bank

Letter

To: Howard Wagner 

From: ABC

Date: June 30, 2018

Subject: How to finance and maintain the growth of the Bank

Mr. Howard Wagner

I received your letter in which you asked me to uncover the latest information that can be beneficial for the bank in which we operate. I studied the current situation of the bank in the operating market and response towards the rapidly increasing competitive environment form the competitors because of new entreats and efferent strategies of the competitors. Here I have come up with some suggestions that can help the management to make the performance of the bank highly efficient in terms of financial strength and growth of the bank in the target market. Some suggestions are also given that may help out you.   

The analysis is based on the findings of the article that I studied from the online databases, therefore, information can be considered as authentic information. Bank growth can be measured through the logistic regression model that has about two level of stages. Laws and regulations by the government are changing with the time, therefore, we should also make changes in our policies of the bank. in the past geographical expansion of the banks was forbidden but now Riegle-Neal Banking Act is providing support to the banks to open new branches of the bank outside their local country.   

In the competitive market, successful banks are those who are covering largest market shares and expanding the business all over the world to increase the operational market. Bank growth can be of different types as economic growth and geographical growth, in the economic and financial growth banks need financing form the external and internal environment of the banks. Bank can get financing through selling shares in the open market, acquiring assets of the consolidated banks, liquidating through fixed or non-current assets, and other than all through selling securities and increasing services sales.

Other than branching another possible way to improve the growth of the business to make the bank stronger in financial terms, is to acquire the products and services of the other banks from inside or outside the local country. In the consolidated growth of the banks, they acquire products and activities expansion strategy need to be free from consolidated strategies.

In accordance with all above-mentioned information management can select the best appropriate strategy. While according to my suggestion in this matter, the bank should work on the growth stagey of expansion in the outside of the country and selected geographic segments. Thus with the increase in market and target audience bank will earn more revenue and better reputation as it will become well-known bank over the states.

For further information on this topic, we can discuss in the meeting.

          References

Cyree, K. B., Wansley, J. W., & Boehm, T. P. (2000). Determinants of bank growth choice. Journal of Banking & Finance, 24, 709-734. Retrieved 06 30, 2018, from Journal of Banking & Finance.