In the global setting of the financial system of a country banking crisis and currency crisis are interlinked. Therefore, without a robust banking system a developing country cannot confidently assume liberalisation of capital account convertibility in foreign exchange market. Hence, to that extent continuation of partial exchange control in inevitable though, may not be desirable in the long-term interest of the country, which has a wide-open economy (Malaysia, for instance).
Although investigation and evaluation of the existing norms and practices adopted in the course of current banking and financial reforms in developing countries is unwarranted.
The need is to assess how for these norms can help or prevent instability in the banking system in the context of policy of environmental protection and disaster management, by placing humanity on an equal footing with the natural world. (See Payne, Joyner and Dauterise, 2001).
A synthesis of the short-term as well as long-term global business perspective and an ethical perspective is called for, Business manager just showed not owe a fiduciary duty to serve the best interest of their shareholders to pay for sustainable development but also to care for the potential future safeguarding the interest of prosperity as their social responsibility towards the global society.
ADVERTISEMENTS:
With the blurring of the difference and demarcation among banking financial intermediaries (e.g., now financial institutions are providing working capital, whereas, banks are catering to project financing) The competition in the financial system is becoming fierce and intense, and the efficient in action only succeeds. An awareness and action on the part of players in banking industry in a developing country is absolutely necessary. Success lies in evolving compatible state-of-the-art technology and, reengineering of bank management with zero defect system.
Major financial and technical change in banking sector is seen to be computerisation, deregulation of interest rates, prudential accounting norms, new financial products and so on. A stable strong global financial market a dream yet to be visualised for the sustainable economic globalisations.