ETHICAL ISSUES IN RELATION WITH BANKING INDUSTRY

Abstract

This research contributes to illustrate ethical issues in banking industry and its consequences in relation with financial crisis. The literature review will be questioning and analyzing dangerous scandals happened in baking industries which were emerged from ethical issues. The methodology of this research is based on qualitative method and descriptive analysis for the purpose of analyzing the ethical banking. The methodology will gather different literature sources to understand different terms, factors or variables associated to it. It was concluded that performance index has helped in maintaining liquidity, mitigating risk, profitability and asset quality; since it was strengthened by regulations and rules. The research determined that Financial Services in Asia are most driven to be compliant by regulations followed by Europe, UK, Africa, and then America. Even so, risks that followed by global financial crisis were mitigated though not completely removed but was reduced in banking industry.