Failing Banks

The future is not that hard to see when it comes to the international banking sector. Traditional banks have long started to implement a transformation plan, driven by the advancements in information and communication technology, which has been accelerated by the worldwide recession. Now, Governments are pushing for more rigid regulations and prudent examinations to protect their populations.

Investor Relations

For any relationship to survive it must be based on respect, sensitivity, confidentiality and most prominently, loyalty. Business comprises numerous relationships with; customers, suppliers, venders, employees, bankers and investors. Customers, whose positive word-of-mouth endorsement brings in more sales, Suppliers, who offer superior products and above normal service, Venders who are dependable, Employees that are devoted, Bankers that are considerate, and Investors that offer encouragement and strength.

The relationship with investors is the most important to the business success but is the most difficult to manage and maintain. Investors come in all shapes and sizes, some invest money and anticipate a return on their financial investment, others invest advice (time and expertise) and expect shares as payment, and then there are investors who are family and friends that demand more intangible rewards.

Investment Banking

The Investment Banking sector has a very important role to play in the global economic recovery, although being blamed for causing the world financial crisis in the first place. A sustainable recovery must be driven by quality job creation, which can only be as a direct result of financing new projects, with stronger independent oversight to identify potential risk. Regulators of the world’s largest economies have been analyzing the problems and devising solutions to save and repair the image of the sector.

Investment Banking brings together viable projects and needed funding. All major developments in the world, over the recent past, were funded through investment banking activities. Bringing inventions to market, modernizing infrastructure or expanding capabilities, all required unique and creative funding solutions. A mixed of debt and equity funding that would restrict short-term debt repayments, allowing for a healthy cash flow position, while the project is not generating income, clearly understanding the risk associated with medium to long-term revenue streams. Investment bankers sell the calculated risk to large corporations and wealthy individuals who can afford the losses but buy-in for the long-term gains.

Success from Failure

The failure of the education system to present and promote business (not to be confused with management studies) as a career option has led to a society of employees. This failure must stop, the system must not allow dropouts, for any reason, access to education is a basic human right, no discouragement from testing but an assessment formula that addresses, without shame, the individual’s learning speed and aptitude. Success of any education system, from early childhood to adult instructions, is to promote a love of learning, foster a curiosity and desire to research, analyze, implement and evaluate.