An Analysis of Honesty, Trust, and Integrity in Banking Operations

This report presents a literature review on the critical role of honesty, trust, and integrity within the banking sector. It synthesizes findings from three articles, examining managerial honesty, the importance of ethical practices, and the impact of trust on financial stability. The report explores how managerial honesty mitigates risks, influences investment decisions, and facilitates market participation. It highlights the need for bankers to prioritize client interests and adhere to ethical codes of conduct. Furthermore, the report emphasizes that trust is essential for financial transactions, economic development, and the overall health of the banking system. The conclusion underscores the necessity of ethical behavior and the role of banking supervisors in ensuring accountability and maintaining public trust in the financial industry.

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
ARTICLE 1: Investing in managerial honesty................................................................................3
ARTICLE 2: Teaching banks to value, trust and honesty...............................................................4
ARTICLE 3: Trust and integrity in banking....................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Literature review is that kind of reviewing article is based on scholar paper that represent the
current knowledge considering the substantive findings and theoretical methodological
contribution for the specific topic. Literature review is undertaken as a secondary source that
does not include original experimental work (Kia, Halvorsen and Bartram, 2019). Developing a
literature review is the part of graduate and postgraduate work that include dissertation journal
article and thesis. It is also considered as the common research proposal that begins with the
dissertation and thesis. The following report is based on three different articles on honesty in
banking organisation considering their operations as well.
ARTICLE 1: Investing in managerial honesty
According to Wagner, A. (2017), trust is considered as the key pillar of Banking and
financial institution as it includes whole economic system. For this article needs to include the
new vision on the consequences and drivers of the manager honesty and the preferences of
investors including their values that prominently fulfil their functions in order to become more
successful. It is pretty much clear that fraud occurs in the organisation then it prominently
damages the morality of employee’s shareholders stakeholders and company as well. But it
permanently analysed that considering the prevalence and drivers of managerial honesty is
helpful in order to make happening comeback. Corporate frauds and misconduct lead to
discourage and destroy the values of shareholders and investors and took away their trust over
recent decades (Maheshwari and et. al., 2017). Dishonesty leads to developed distrust and it is
not good for banking sector and Business models because they are developed and their base
concept is trust and Faith.
Moreover, in United States there are around 7% of the financial Advisors have recorded for
the misconduct and then it leads to increase around 15% at some of the largest advisory firm.
Along with this substantial honesty depicts the face of incentives that is observed in the real life
as most of the organisations and their managers always remain honest with their work.
Dishonesty tense to seek wide explanation and variation within the human behaviour and
fundamental research that prominently represent that individual are differ from their preferences
and requirements (Bakar, Yasin and Teong, 2020). Fundamental vision from the applied
perspective provide the prominent regulation which is required in terms of enhancing the ethical

management and also promote honesty within the corporate culture as investors influence
managers from taking investment decisions regarding the managerial honesty. Moreover,
variations are important for the investors considering their ethical decisions that impact the
choice of investment as investors always try to increase their investment return and the care only
about goals other than their own Returns. Investors also seek higher return on the lower
uncertainty as the trade off two prominent factors against each other. In simple words managerial
honesty is essential because it mitigates the deception risk. Moreover, the investors always prefer
to invest in the non-earning management where as chief executive always have strong protected
values for their honesty and also perceive ethics and values regarding the corporate culture.
In terms of this the prominent implications for the research on banks as important as it
acknowledge their clients and managerial honesty (Coleman, 2018). Along with this the
preferences and goals regarding the environmental and social issues are also undertaken because
it suggests the miss out things considering the important dimensions as per the preferences of
investors and the broader ethical values which is more concern regarding the values of chief
executives (May and et. al., 2019). Furthermore, applying the significant vision does not need
investors as it is hard and quite impossible to obtain prominent data and values for the
investment decisions and perceptions of the investors. Along with this clear information
regarding the prominent problems that reveal managerial characteristics which is needed to
enable the channel funds of investors to the company undertaking more honesty and values.
Hence the managerial honesty is also important factor as it leads to facilitate stock market
participation in the wide variety of the types of investor. Along with this observing the wide
variety of investor and client leads to elect the investment with company that is managed by the
honesty of chief executive considering the perspective observing various reasons suggestions and
so on that contribute towards the managerial unethical behaviour.
ARTICLE 2: Teaching banks to value, trust and honesty
According to Hennessy, M. (2014), the retail bankers always act with integrity as per their
interest of the stakeholders and Society at the large scale and they always try to prioritise clients
by offering best advice as per their competence and abilities. Along with this the bankers and
employees always need to comply with the significant laws and regulations considering the
courts of conduct that apply within the retail banking sector. Bankers need to maintain
confidentiality and also hold themselves more accountable and responsible towards their client as

they should not abuse their position. It is responsibility of bankers to make their sincere effort in
terms of promoting trust and preserve their position in banking sector. For this honesty is the
primary choice for the business people and considering the facts and logical basis for the
conviction. Without values and honesty an organisation is not developed as the basic reference
for right over wrong and trust for self-delusion leads to crumble the face of temptation (Kettle
and et. al., 2017). In regard of this The Economist need to trust the Marketplace with the help of
retaliation and reputation and also undertake that if they trust then the victim can opt the option
of Revenge and make company to stop their business which is not in the favour of organisation.
Despite from this banks and financial markets are the pillars for developed economy and banking
sector which require and promote the economic development.
For this the policy makers promontory respond to words the rising challenges as the micro
economic policies and specifically offer the prominent amount. Furthermore, the main argument
is always right to defend defective rules that are required but not sufficient to develop trust as it
need more influential things to improve the financial sector. In regard of this differential advisers
are prominently aware as they embark on the ethical discussions and exposes the philosophical
background of the bank considering their mistakes as well. At the time of advocating the social
values considering the self-interest tends to believe that economic transaction is developed on the
grounds of morality and healthy Bond (Sharif and Raza, 2017). The prominent successful
financial transaction represents the relationship that is developed with the help of repeated
contacts. The personal relationship is not quite easy as it is guaranteed on the grounds of contract
because it depicts the trust on the basis of agreement and also develop good faith which is
unforeseen in various situations. In regard of this the financial contract prominently include the
commitment for the obligation on the future time and undertaken various legislations and laws
which is the matter of various interpretations. In relation with this trust is required in terms of
making financial transaction possible as personal trust is sufficient for the normal contact
meanwhile advanced financial agreement need generalized trust.
Along with this in order to invest within the stock market household should trust on the
variety of intermediaries on the trading on the grounds of best prices. The banker should be
confident in the market on the grounds of fair management and also does not manipulate
organisation release the prominent information and management that represent the prominent
interest of company (Kamau, 2018). In terms of this code of conducts are important at the higher

level as it is difficult to enforce the practical impact on the remaining practices. Along with this
banker never play the central role in the corporate broad agent hours as they believe the attempts
which are done by them in terms of making ethical practices more Systematic. Before the role of
Banking supervision and the current procedure of reforms objective is changing not only the
norms and regulations but also the supervisory approach for the betterment of banking sector.
ARTICLE 3: Trust and integrity in banking
According to Angeloni, I. (2014), trust and integrity depicts the significant values and moral
which is not only for the banking sector but also significant for every business in a General term.
Along with this various scandals and crisis are included and occur within the banking sector
considering the existing financial collapse which is developed on the lack of trust and integrity.
For the more it is quite easy to invoke regarding the requirement for trust and integrity in
banking but to develop the Ernest appeals for the Restoration of qualities is quite difficult.
Banking is more different from other business and their activities as it is undertaken as the
different rolls on the grounds of trust and integrity which is important in the banking sector. In
terms of this contract are considered as the important element of market and the chief device for
implementing discrete transaction. Instead of this trust can be understood as the legally
enforceable contract that represent the proper involvement within the market activities. It also
tends to include significant group of suppliers and employees that offer safe and Secure return on
several inputs with the help of various contracts that does not depend on the force and imposed
on the managers of company (Oluwole, Aderibigbe and Mjoli, 2020).
In regard of this traditional banking conducted in the market considering the contract and
not the market person. In relation with this bank need to resemble the manufacturer that pot
inputs in the market from the suppliers considering the capital and Labour and then transform it
into the output which is easy to sold to the customers. Banking services offer their services to
various intermediaries as it includes for critical functions considering payment that offer
transferring money from one to another. Savings that offer people to safely placing their money
for their consumption. Furthermore, landing depicts making loans from the depositors to
customers on the ground of requirement of funds for the investment purpose. Risk bearing and
shifting in which banks where the risk which is involved with the help of savers in order to make
loans and also shift their risk from the depositors to the shareholders. Furthermore, banks offer

the services that provide the payment system on the grounds of contract as customers and
recipients need to develop trust and services that are reliable (Al-Dmour and et. al., 2020).
Considering the lending functions banks are more vulnerable party that must include trust
for the borrowers in terms of repaying the requirement of trust and also reduce when the loan is
secured on the grounds of legal right to foreclose. Trust is undertaken as the critical relationship
of the depositors and savers within the bank to the extent that money is the main question in
terms of keeping things secure for the loan process and make it available on their demand. The
prominent feature of Banking is that they do not offer services and their products to the
functioning economy as it is considered as the important component of economy. All over
undertaken the banking system is considered as the heart of body that regulate blood throughout
the body and sustain the life of people in terms of economy.
CONCLUSION
By considering the above discussion it is identified that ethics and honesty is important
within the banking sector in order to develop their image and reputation and offer proper
financers to people. For this, ethics are prominently connected to the financial world on the
grounds of Trust as without trust it is considered as either dysfunctional and unstable as
considering the current experience. In regard of this banking supervisors need to be aware for the
accounting issues and also contribute their time in terms of resolving the whole procedure.
Hence regulations and supervisory Reform leads to contribute medially towards the
strengthening of trust.

REFERENCES
Books and Journals
Al-Dmour, R and et. al., 2020. The effect of customer lifestyle patterns on the use of mobile
banking applications in Jordan. International Journal of Electronic Marketing and
Retailing, 11(3), pp.239-258.
Bakar, N.M.A., Yasin, N.M. and Teong, N.S., 2020. BANKING ETHICS AND UNFAIR
CONTRACT TERMS: EVIDENCE FROM CONVENTIONAL AND ISLAMIC
BANKS IN MALAYSIA. Journal of Islamic Management Studies, 2(2), pp.11-26.
Coleman, H., 2018. The impact of ethical leadership and interpersonal trust on employee
engagement in an investment banking environment in South Africa (Doctoral
dissertation, University of Pretoria).
Kamau, T., 2018. The effects of leadership style on individualsÕ motivation and performance in
the South African banking sector (Doctoral dissertation, University of Pretoria).
Kettle, S and et. al., 2017. Failure to CAPTCHA attention: Null results from an honesty priming
experiment in Guatemala. Behavioral Sciences, 7(2), p.28.
Kia, N., Halvorsen, B. and Bartram, T., 2019. Ethical leadership and employee in-role
performance. Personnel Review.
Maheshwari, V and et. al., 2017. Exploring HR practitioners’ perspective on employer branding
and its role in organisational attractiveness and talent management. International
Journal of Organizational Analysis.
May, J and et. al., 2019. Welfare convergence, bureaucracy, and moral distancing at the food
bank. Antipode, 51(4), pp.1251-1275.
Oluwole, O.J., Aderibigbe, J.K. and Mjoli, T.Q., 2020. The attenuating effects of organisational
justice on job insecurity and counterproductive work behaviours relationship. African
Journal of Business and Economic Research, 15(1), pp.201-223.
Sharif, A. and Raza, S.A., 2017. The influence of hedonic motivation, self-efficacy, trust and
habit on adoption of internet banking: a case of developing country. International
Journal of Electronic Customer Relationship Management, 11(1), pp.1-22.
Online
Ethics in finance: a banking supervisory perspective. 2020. [Online] Available through
<https://www.bankingsupervision.europa.eu/press/speeches/date/2014/html/
se140926.en.html>./
INVESTING IN MANAGERIAL HONESTY: OPPORTUNITIES AND CHALLENGES FOR
BANKS AND REGULATORS. 2020. [Online] Available through
<https://internationalbanker.com/banking/investing-managerial-honesty-opportunities-
challenges-banks-regulators/>./
Teaching banks to value trust and honesty. 2020. [Online] Available through
<https://www.irishtimes.com/business/financial-services/teaching-banks-to-value-trust-
and-honesty-1.1673998>./