BUSINESS ETHICS & 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 66 rapid-fire Q&A cards.
What is business ethics in the context of banking?
Business ethics in banking refers to the application of ethical principles such as honesty, integrity, fairness, and transparency in all banking operations and decision-making processes.
What is the meaning of 'due diligence' in the context of banking ethics?
Thorough investigation before entering transactions to ensure ethical compliance.
Which regulatory body in India primarily oversees ethical conduct in banking?
The Reserve Bank of India (RBI) is the primary regulatory body that oversees ethical conduct in banking through guidelines, circulars, and prudential norms.
What is 'greenwashing' and how does it relate to unethical banking practices?
Falsely claiming environmental benefits to mislead customers and investors.
What is the significance of a Code of Conduct for bank employees?
A Code of Conduct sets out the ethical standards and behavioural expectations for bank employees, guiding them to act with integrity, avoid conflicts of interest, and maintain customer confidentiality.
What is the ethical obligation of banks regarding data privacy of customers?
Banks must protect and not misuse customers' personal financial data.
What does the term 'fiduciary duty' mean in banking ethics?
Fiduciary duty in banking means that bankers are obligated to act in the best interests of their customers and not exploit the trust placed in them for personal gain.
What is 'moral hazard' in the banking sector?
Risk that banks take excessive risks knowing they will be bailed out.
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