JAIIB · PPB

ETHICS AT INDIVIDUAL LEVEL

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What does individual ethics in banking primarily refer to?

A

Individual ethics in banking refers to the personal moral principles and values that guide a bank employee's conduct, decisions, and behavior in their professional role.

Q

What is the meaning of 'ethical dilemma' faced by an individual banker?

A

A situation where two valid ethical principles conflict with each other.

Q

Why is personal integrity considered the cornerstone of ethical banking behavior?

A

Personal integrity ensures that bankers act honestly and consistently even when unobserved, forming the foundation of trust between the employee, the institution, and its customers.

Q

What does the principle of 'non-maleficence' require from individual bank employees?

A

Avoiding actions that cause harm to customers or the institution.

Q

What is the significance of 'duty of care' for individual bankers?

A

Duty of care obligates each banker to act in the best interest of the customer, exercising the skill and diligence expected of a prudent professional in all dealings.

Q

How does 'informed consent' relate to ethical banking at the individual level?

A

Bankers must ensure customers understand products before agreeing to them.

Q

How does the concept of 'conflict of interest' affect an individual banker's ethical obligations?

A

A conflict of interest arises when a banker's personal interests clash with their professional duties; ethical conduct requires declaring such conflicts and recusing oneself from related decisions.

Q

What ethical standard governs a banker's behavior when dealing with vulnerable customers?

A

Extra care, empathy, and protection from exploitation or unsuitable products.

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