Ethics, Business Ethics and Banking
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the definition of ethics in the context of banking?
Ethics refers to a set of moral principles and values that govern the behaviour of individuals and institutions, guiding them to distinguish right from wrong and act with integrity, fairness, and responsibility.
What is the primary purpose of a code of ethics in a banking organization?
To guide employee behavior and uphold institutional integrity
How does business ethics differ from general ethics?
Business ethics applies ethical principles specifically to commercial activities, addressing issues such as fair dealing, transparency, stakeholder interests, and corporate governance within an organisational context.
What does the term 'moral hazard' mean in the context of banking?
Risk that insured parties take excessive risks due to protection
Why is ethics considered especially critical in the banking sector?
Banks handle public funds, operate on trust, and occupy a pivotal role in the economy, making ethical conduct essential to maintain depositor confidence, systemic stability, and regulatory compliance.
What is the ethical principle of 'non-maleficence' as applied to banking?
Obligation to avoid causing harm to customers or stakeholders
What is meant by the term 'ethical dilemma' in banking?
An ethical dilemma arises when a banker faces a situation where two or more valid moral principles conflict, making it difficult to determine the correct course of action without compromising one value.
What is meant by 'ethical banking' as a broader concept?
Banking that prioritizes social, environmental, and governance responsibility
Video classes for this chapter
More chapters in Module D - Ethics in Banks and Financial Institutions
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