INTRODUCTION

Banking in India originated in the first decade of 18th century with The General Bank of India
coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are
now defunct. The oldest bank in existence in India is the State Bank of India being established as
"The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like
Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was
the most active trading port, mainly due to the trade of the British Empire, and due to which
banking activity took roots there and prospered.
The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.
By the 1900s, the market expanded with the establishment of banks such as Punjab National
Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded
under private ownership. The Reserve Bank of India formally took on the responsibility of
regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers.
The Public Sector emerged as the driver of economic growth consequent to the industrial
revolution in Europe. With the advent of globalization, the public sector faced new challenges in
the developed economies. No longer the public sector had the privilege of operating in a sellers
market and had to face competition both from domestic and international competitors. Further, in
the second half of the 20th century in the developed economies, the political opinion started
swinging towards the views that the intervention as well as investment by Government in
commercial activities should be reduced to the extent possible.

Objectives and aims

The main strategic aim and objective for the nearest period is a dynamic
development of the Bank and achievement of a qualitatively new level with the
standards of the Basel Committee on Banking Supervision. The development strategy
of the Bank is based on the components, which together will ensure strengthen of the
financial and economic situation of the Bank and the preservation of its credibility with
its customers.
Main strategic aims of Joint Stock Commercial Bank APABANK (Closed Joint Stock
Company) are:
1. Increase of authorized capital, raising size of own capital.
2. Expansion of activity of the Bank by obtaining a License providing right to carry
out transactions in foreign currencies and further entry into the deposit insurance
system.
3. Constant expansion of customer base with a priority on attracting small and
micro-businesses.
4. Formation of a diversified and sustainable resource base.

5. Commencement and active development of cooperation with financial

institutions and mortgage systems.
6. The increase in capitalization of the Bank.
7. The introduction of international standards of banking operations.
8. The introduction and development of modern methods of marketing and PR.
9. Improvement of risk management system.
10. Improving the quality and diversity of the range of services for individuals,
small and medium-sized businesses, in raising the volume of transactions and the
pursuit of cost reduction of managing business, increasing its level of technology and
control.
Final result should be the creation of modern technologically Bank, which will
possess by an optimal required network of service centers, provide high quality services
to clients and enjoy significant authority in the market.

Analysis
This means to support economic growth of 1 percent, even greater growth of energy consumption was
required, amounting to 1.2 percent. In addition to that, we must not lightly dismiss the deterioration of the
environment wrought by this situation. According to the World Resources Institute data, Indonesia was the
sixth-largest emitter of carbon dioxide in the world after China, the US, the EU, India and Russia in 2011.
In the period from 2006 to 2010, Indonesia also recorded the highest growth in carbon dioxide emissions
among the ASEAN-5 countries (Indonesia, Malaysia, Thailand, Singapore and the Philippines), at an
average of 5 percent per year. Actually, the Indonesian government already has a series of regulations to
promote sustainable economic development. An example of these regulations is Presidential Regulation
5/2006 on national energy policy to achieve energy elasticity of less than 1 in 2025. There is also
Presidential Regulation 61/2011 on the national action plan to reduce greenhouse gas emissions.
However, progress on the achievement of these targets appears to be slow with regard to the
aforementioned
figures.
Recently, the Financial Services Authority (OJK) published a roadmap on green finance, which aimed to
outline the conditions needed to achieve sustainable finance in Indonesia in the medium and long term,
as well as to determine and develop milestones showing improvements related to sustainable finance.
This roadmap is to be appreciated knowing that the Indonesian economy currently still exhibits wasteful
traits
in
terms
of
energy
usage
as
well
as
environmental
degradation.
If you look at the financial markets in Indonesia today, banks still play a dominant role in providing
financing to the economy. Data from the Indonesia Stock Exchange (IDX) on the recapitalization of public
offerings of both stocks and corporate bonds indicates that from 2010 to 2014 an average of Rp 106.15
trillion (US$8.17 billion) in issues was offered.

Conclusion

Banking systems have been with us for as long as people have been using money. Banks
and other financial institutions provide security for individuals, businesses and governments,
alike. Let's recap what has been learned with this tutorial:
In general, what banks do is pretty easy to figure out. For the average person banks accept
deposits, make loans, provide a safe place for money and valuables, and act as payment
agents between merchants and banks.
Banks are quite important to the economy and are involved in such economic activities as
issuing money, settling payments, credit intermediation, maturity transformation and money
creation in the form of fractional reserve banking.
To make money, banks use deposits and whole sale deposits, share equity and fees and
interest from debt, loans and consumer lending, such as credit cards and bank fees.
In addition to fees and loans, banks are also involved in various other types of lending and
operations including, buy/hold securities, non-interest income, insurance and leasing and
payment treasury services.
History has proven banks to be vulnerable to many risks, however, including credit, liquidity,
market, operating, interesting rate and legal risks. Many global crises have been the result
of such vulnerabilities and this has led to the strict regulation of state and national banks.
However, other financial institutions exist that are not restricted by such regulations. Such
institutions include: savings and loans, credit unions, investment and merchant banks,
shadow banks, Islamic banks and industrial banks.

References[edit]
1.

Jump up^ Annual Report 2015, p.

28 http://www.bdc.ca/EN/Documents/annualreport/BDC_AnnualReport_2015.pdf

2.

Jump up^ Annual report 2015,

p.4 http://www.bdc.ca/EN/Documents/annualreport/BDC_AnnualReport_2015.pdf Retrieved 2015-0812

3.

Jump up^ Treasury Board of Canada Secretariat. http://www.tbs-sct.gc.ca/pas-srp/remarksobservations_e.asp?id=34355. Retrieved 2012-05-04

4.

Jump up^ Official

website. http://www.bdc.ca/EN/about/overview/history/Pages/pioneer_years.aspx. Retrieved 2012-0504

5.

^ Jump up to:a b Official

website. http://www.bdc.ca/EN/about/overview/history/Pages/pioneer_years.aspx Retrieved 2012-0504