• Learning Objectives:

  • Understand the importance of ethics and corporate governance in banking.

  • Identify current issues and trends in commercial banking.

  • Explain the impact of digital transformation on commercial banking.

8.1 Ethics and Corporate Governance in Banking

The University of Edinburgh course covers “corporate governance in banks, effects on performance. Ethics in banking” as a core topic . Corporate governance in banks has been identified as a key factor affecting bank performance. The Oxford Handbook chapter also examines banks’ role in the economy and their assigned responsibility, which includes ethical considerations .

8.2 The Impact of Digital Transformation

Commercial banking is being reshaped by digital transformation . Key trends include:

  • Real-Time Payments: Adoption of instant payment rails like FedNow and RTP .

  • API Banking: Open banking infrastructure enabling third-party integrations .

  • Commercial Credit Tightening: Stricter underwriting standards following rate volatility .

  • Treasury Digitization: Corporate clients demanding real-time liquidity visibility .

  • Fintech Competition: Neobanks and embedded finance providers offering superior user experience .

8.3 Financial Crises and Bank Resilience

The University of Edinburgh course covers “bank crises” as a topic related to emerging markets, but the study of bank failures is relevant globally . Commercial banks must be resilient to financial shocks.

8.4 Current Issues and Future Trends

Current issues in commercial banking include :

  • Climate risk integration into credit models.

  • Regulatory changes impacting capital requirements.

  • Competition from FinTech and non-bank financial institutions.

  • Digital transformation and the modernisation of banking operations

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