Quality Issues in Banking: A Conceptual Approach

Quality control of banks is discussed in the light of the recession in banking in the early 1980s. The failure of banks has been seen to be due more to poor management and control than to adverse economic conditions. Therefore the quality of institutions must be measured not simply by profitability but also by customer service, key financial ratios and analysis, especially the loan portfolio. It is also imperative that banking laws and government regulations should be fully observed. Finally, in an age of widespread computer and other types of fraud it is essential that job applicants be rigorously screened for trust worthiness.