The Necessity of Quantitative and Qualitative Information Provided by the Banking System
Author: Professor Alexandru Trifu Ph. D.
“Petre Andrei” University of Iasi.
Published Date: 2023-09-20
GoogleScholar: Click here
Keywords: Banking system, monetary policy, inflation, information, feedback
Abstract:
Punctually, the aim of this paper is to highlight the banking system’s communication on different audience, especially today when the challenges in this field are very strong. The communication is considered from both aspects: quantitative, that means a transparent, regularly, or as many times as needed and qualitative, meaning to understand what it is transmitted.
This paper considers the monetary policy facing the inflation rate and, as a consequence, the existence and stability of the banking system and of economies.
We are dealing with two levels of communication or information: the first level is what the central banks release within the media environment and to the people and, the second level is the relationships between the commercial banks and their clients or potential clients.
Using the press releases from the most important central banks of the world, declarations, data and what the commercial banks are doing in the monetary policies, that means a systematic review conducted in this respect, including our own experience as a client of some important banks, we’ve tried to perform an in-depth analysis to highlight the necessity of a permanent, transparent and understandable communication/information, in order to anticipate some possible threats and weaknesses. But, above all, it is important that the customers, including firms/companies provide appropriate feedback to the information received and follow a prudential monetary and financial strategy combined with monetary and financial tactics.
The well-functioning and stability of economies and the well-being/happiness of clients are the goals of this enterprise. On the other hand, to understand correctly the messages leads to avoid panic amongst consumers (people or firms) and to preserve, as possible, the savings and solvability on the market.
