Feature Post

UFBU Calls Off Nationwide Bank Strike on 24th and 25th Mar 2025 After Assurances from Finance Ministry and IBA

I n a significant development on March 21, 2025, the United Forum of Bank Unions (UFBU) has decided to call off their two-day nationwide strike, which was originally planned for March 24 and 25. This decision was made after the UFBU received positive reassurances from both the Finance Ministry and the Indian Banks’ Association (IBA) regarding their key demands. The banking unions, under the umbrella body of UFBU, represent employees from nine major unions across the country, including AIBEA, AIBOC, NCBE, AIBOA, and BEFI. The unions had earlier called for the nationwide strike to protest against several ongoing issues that they believe impact the welfare and job security of bank employees. Key Issues Behind the Proposed Strike The strike was initially called by UFBU to address a range of pressing concerns, some of which have been lingering for years. The union's main demands included: Five-Day Workweek for Bank Employees:  One of the most anticipated demands was the implementation o...
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RISK IN BANKING - PART 1

Risk in Banking - Part 2

 Banking Book - Deposits and Landing and Some Investment required for Statuary Requirement
Banking Book exposed to
1) Liquidity Risk
2) Defaulter Credit Risk
3) Interest Rate Risk
4) Operational Risk

Off Balance Sheet Exposure-
- Contingent in nature
- Not involve immediate funding but become fund based obligations.Subject to certain contingencies.
Example- Guarantee, Derivatives like swaps, Futures, Forward contract, Options.

 Off Balance Sheet Exposed to
1) Liquidity Risk
2) Interest Rate Risk
3) Market Risk
4) Credit Risk
5) Operational Risk

 Sources of Risks in Banks-
1) Corporate Finance
2) Trading and Sales
3) Retail Banking
4) Private Banking
5) Commercial Banking
6) Payment and Settlement
7) Agency  Services
8) Asset Management
9) Retail Brokerage

 Banking book exposed to-

 Liquidity Risk, Defaulter Credit Risk, Interest Rate Risk, Operational Risk

 Trading Book Exposed to-

 Market Risk, Liquidation Risk, Market Liquidity Risk, Default or Credit Risk, Operation Risk

 Credit or Default Risk- 

 Credit Risk - Potential of a borrower or counter party failing to meet obligation.

 Counter Party Risk - Is a credit risk generally associated with a trading transaction.
Country or Sovereign Risk - In case of cross country.

 Market Risk - Also known as price risk, adverse mark to market risk and arises due to movement in prices of interest rate instrument, equity, commodity and currency.
Forex Risk or Exchange Risk - market liquidity risk.

 Operational Risk - Risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
  • Fraud Risk (internal or external)
  • Model Risk
  • Compliance Risk
  • Regulatory Risk
  • Technology/System Risk
  • Legal risk
Other Risks - 
  • Strategic Risk
  • Reputation Risk
  • Political Risk
  • Environment Risk
  • Natural Calamities Risk etc.
Interest Rate Risk - Risk to interest income due to adverse interest rate movement.



Interest Rate Movement Impact-
  • Earning of bank     
  • Economic value of equity
  • Off balance sheet exposures like derivatives.


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