For an enhanced understanding of banking industry, it is significant to look at the atmosphere in which commercial banks operate. Production growth and globalization are two main forces reshaping the banking industry nowadays. The following two questions are associated to such two issues.
a) Explain one of the new banking services provided to customers by numerous local banks. Discuss the potential profits and challenges to such banks which are brought about by the introduction of this latest service.
b) Hong Kong is an international financial centre and numerous foreign banks want to set up their presence in the city. In view of public welfare, must the government impose more restrictions against the entry of foreign banks into the Hong Kong? Elucidate the rationale behind your reply.