Inter-similarities and differences of banking systems
Banking forms the pillar for the financial system of a country and can give an insight into a nation’s economy. Through this research project, five different countries’ banking systems are analyzed - two developed (United States and United Kingdom), two developing (India and Mexico) and one underdeveloped (Tanzania). Though the banking systems are spread across countries of different social and economic standards, the data from these countries can help understand commonalities, as well as strengths and weaknesses in their banking systems. This project aims to understand what makes each nation’s banking system unique, and improvements that may be achieved across the different countries. This project is focused on the loans and deposits, through quantitative and qualitative analysis. In the quantitative analysis, a case study is performed, by comparing and analyzing profitability, liquidity and solvency ratios for the three largest banks of each country’s banking system over the period of 2014-2017. Additionally, the qualitative analysis consists of interviewing professional bankers active in the industry, with the goal of better understanding the practical aspects of banking across countries. The results of this project suggest the correlation between Mexican Peso crisis and India today, culture and banking especially in developing countries and differences in how key financial ratios for banks interrelate- state reasons as to why these ratios interrelate and affect each other in the way they do.