Free Essay: How to Shop For a Bank

This journal creates part of essential business articles that appear in the wall street journal. This article, ‘How to Shop for a Bank’, outlines various business strategies that enhances business trading. Additionally, the article provides basic procedures that a bank can undertake to ensure decisive guidance when making shopping decisions. Clients are also involved in this kind of business and therefore, they must evaluate viability of all respective banks before trading with them or before going for shopping.

In regards to how to shop for a bank, this article offers strategies that clients must always adhere to before making any eventual operational deal with a given bank. The first strategy requires that clients have to understand the nature of services offered by the bank and the costs involved. This prospect involves operating more than one bank with the nearest banks and beginning trading with the banks. Considering the services that the bank offers is very crucial in determining the amount spent on the product.

The strategy involved in the process attributes to close evaluation of costs in all scenarios before making any commitment. For example, a client must always carry out price evaluation through relevant authority banks and make decisive decisions. Price is also a major determinant of the option made by an individual.

According to laws of economies, interest is generated by price and the will to purchase an item is at the expense of the other. The business strategy is also outlined in the article and it involves price evaluation as well as valuation of quantity based on different parameters such as quality and quantity of an item. The client must also undertake several measures in ensuring price discrimination by banks don’t occur. This strategy also supports popular shopping programs employed by different banks.

This article also provides an additional business strategy based on borrowing and lending by banks. According to fundamental principles of the article, lending and borrowing from banks must be clearly supported by key questions. The questions attribute to flexibility and rates of banks in accordance to prevailing market rates. The banks must also have threshold loan lending and borrowing amounts as well as lending authorities where the management must always steer clear the roles of community based managers.

Shopping for a bank also involves different elements because of the transformational processes that many banks have undergone. Additionally, many banks have merged with other institutions in their operations for expansive network of client coverage and to enhance their services. According to the article, many banks prefer operations with big sized and small business organizations.

This feature is also attributed to their need to enhance the status and welfare of their clients. The ability of financial institutions to provide good payment duration and flexible rates often determines its efficiency as well as ability to solve contemporary problems in the society.

The distinction between large and small banks also relate to the fact that the concept of interest rates and grace payment periods. Large banking institutions also have large financial potentials while small banks have little or low financial capability. Due to this feature, large banks often have low interest rates on loans while small banks offer loans at a higher interest rate.

The services that small and large banks offer corresponds their financial capabilities. In addition to the discussed elements, Banks also adopt various strategies to help entice their clients. For instance, small banking institutions have less stringent policies on borrowing while the rules applied by large banks on borrowing and lending are more even though their terms are more favorable compared to that of their counterparts.

I tend to reject and agree with some points based on given points. The first point when it comes to financial capability of banks to borrow and lend money often depends on the level of services that the bank offers which, also depends on their capability financially. Loans offered by bigger banks have a low interest rate while that offered by smaller banks on their lending and borrowing are at a higher rate.

This point is therefore valid in business enterprise and development context. Therefore, lending rates largely depend on the size of the bank and it is something that has remained justified by business principles and laws. Financial laws also state that larger financial institutions have a very clear access to loans, lucrative financial deals and it translates to the services offered by the banks.

This is the first point that strongly supports application of ‘How to shop for a bank’’ article in line with this business. In addition, the way in which, financial markets are managed and organized by the banks in different contexts.

The other point that makes this article acceptable is based on the context lending and borrowing views. Regional banks have low financial reserve and smaller in nature and as such, have a lower lending financial rate. Having knowledge on smaller banks highlights the significance of involving them in local economic zones. Additionally, small banks have access to the people’s local affairs because they offer direct funding in small scale businesses.

This article is also concurrent with international business concept in different ways. Under the concept, international trade on banking offers stipulations under operations of the banks while the concept of the services is also used in international trade to undertake business oriented roles.

International trade also relies on financial concept to undertake different operations. This article focuses on different concepts such as account checking, use of credit cards when carrying out different transactions in different trade elements and business savings accounts. Connective experience between trade and banking also generates a common application in these areas.

For example, activities that are undertaken by a banking system into international business trade includes term loans and wire transfer. Incorporation of the terms in international trade also led to its success in the long run. The case of financial transfer into international trade is also made easy and more specifically with the inclusion of mobile banking services in the business.

Promotion of trade is also best undertaken with inclusion of different business techniques and strategies with regards to current terms.

In conclusion, international trade and banking services allow for smooth flow of global business services. This article on bank shopping also enables entrepreneurs with sufficient skills to cope up with any business eventuality. Bank shopping and banking services are also key strategies that are outlined in this Wall Street article.