Unity Bank Challenges

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Problems Faced by Unity Banks
Unity banks face enormous challenges both internally as well as externally. Internal challenges include issues related to the ownership. Unity banks lack autonomy, which shapes their destiny. Furthermore, union banks reflect politics rather than economic obsessions. Unity banks cannot hire employees at market salaries, which impose constraints on the banks in terms of their nature of oversight. The nature of oversight of unity banks prevents them from operating in a manner that values the concept of time as a competitive factor. On the other hand, the external challenges are severe. The business model implemented by unity banks is under stress due to the rapid and continuous changes occurring in the market. On
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It is essential to build in-built flexibility structures and strengthen the efficiency of public ownership. Another possible solution is the establishment of a genuine board management and worker motivation in order to cope up with the paradigm shifts occurring in the banking industry. The critical element of success for unity banks is the government paying significant attention to the major tasks undertaken by unity banks. Setting up advisory boards in key areas of the banking process is also beneficial in solving the problems faced by unity banks. Improving the public policy contributes to an efficient transitional path of the banking system implemented by Unity banks and helps to move from a regulated focus to a more liberalized regime. it is equally important that unity banks take proper action to resolve the issues related to lending rate stipulations, evolution of a credit system and many…show more content…
While internal challenges include problems related to ownership, autonomy and politics of the banks, external challenges make unity banks subject to constant stress due to the rapid and continuous changes occurring in the market. Some of the of the major challenges faced by the unity banks include customer acquisition, inability to meet the global standards, policy infirmities, lack of proper management, trained staff and experienced personnel. falling interest rates, backwardness of the rural branches, international competition and domestic restructuring are other common problems faced by Unity banks. Some of the best solutions to resolve the problems faced by unity banks is enabling flexibility to solve the rigidities of bank ownership, establishment of a genuine board management, interference of the government, improving the public policy and resolving the conflicts among

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