Systematic Literature Review: Honesty, Trust, and Banking Practices

This report presents a qualitative systematic literature review focusing on the critical role of honesty in the banking sector. The review examines various aspects, including corporate governance, ethical considerations, and the impact of dishonesty on trust and financial stability. Several articles are analyzed, highlighting the importance of regulations, business culture, and risk factors related to fraud. The analysis covers the UK, Iran, and Iceland banking sectors, discussing failures in corporate governance, trust restoration efforts, and the influence of religiosity on value relevance. The review emphasizes the need for ethical practices, transparency, and strong internal controls to maintain customer trust and prevent fraudulent activities. The findings underscore the importance of honesty in building and sustaining a healthy banking environment, providing insights into the challenges and potential solutions for fostering trust and ethical behavior within the financial industry. The analysis includes examination of the collapse of Icelandic banking system, the role of government and the need for sustainable economic growth.

Assessment 1
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Contents
QUALITATIVE SYSTEMATIC LITERATURE REVIEW..........................................................3
RESEARCH QUESTION...........................................................................................................3
Summary......................................................................................................................................6
REFERENCES................................................................................................................................7
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QUALITATIVE SYSTEMATIC LITERATURE REVIEW
RESEARCH QUESTION
Q1. How honesty works in banking sector?
Systematic Lite
This article has given the information in relation to different regulations and corporate
governance of different banks of United Kingdom which considered to be the reason of failure.
The positive aspect of this particular article that was identified was particularly focusing on the
culture followed by banks of United Kingdom from the year of 2004 to 2009.
According to Alison Lui, (2014), it is mandatory to understand the micro aspects of
regulation and corporate governance of different UK banks and the reason that came in front was
the failure of corporate governance of five major UK businesses. The particular investigation
which was performed by the author was “An investigation into the culture of five UK banks
between 2004 and 2009”, where the two different hypothesis that was considered are: financial
institutes like banks has moved towards sales driven culture rather than going for the customer
driven culture and this was done because of the financial crisis that was faced in the year of
2007.On the other hand, the other one is based on banking culture which was followed by 5
major UK banks from the period of 2004 to 2009 where they have showed recklessness, greed
and dishonesty.
2. A study on trust restoration efforts in UK retail banking industry
This article has showed the benefits of trust Restoration model that was required to be followed
by banking sector of United Kingdom and how various features which has been provided buy
United Kingdom like lending money and so on are required to be followed in terms of rules and
regulations in order to reduce the chances of failure towards trust of customers.
According to Shakerl Ahmed, Kenbata Bangassa and Saeed Akbar, (2019), it is
mandatory to analyse the micro level trust routing ample number of efforts that would help
United Kingdom’s banking services to look among different aspects free gaining the trust of
customers. Considering a trust Restoration model, ab Bank belonging to United Kingdom could
effectively employ enhance transparency within the operations true considering disclosure of
various features that has been provided by them like lending and so on. Implementation of
different procedures and policies may be helpful in building strong relationship of different
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banks with customers and employees in order to support different communities and small
businesses. Focusing on technology infrastructure effectively help in promoting efficiency within
the operations that may be helpful in in building trust among Reliance of the services offered by
banks of United Kingdom.
3, Examining fraud risk factors on asset misappropriation: evidence from Iran banking
industry
This particular article show me the positive and negative aspects of risk factors that are
directly linking with fraudulent activities within Iran banking industry. A few of the positive
aspect this article was that it may help the readers about major elements of fraud risk which
particularly influenced employees that were working in in banking sector of Iran and mislead
customers.
As mentioned by Soheil Kazemian, Jamaliah and HamidrezaVakilifard, (2019), there are
various elements that link with fraud diamond on a set misappropriation in the industry of banks.
The data which has been collected by the authors has clearly showed that the participants have
strongly supported the major elements of fraud risk that may majorly impact or influence staff
members towards misappropriation within Iran. It is must to deliver equal opportunities or
reduce them so that negative rationalization of staff members cannot be seen and this can be
done with the help of strong internal control done by the banking industry of Iran.
4. Business culture and dishonesty in banking industry.
This particular article has showed the business culture of financial sector that was followed
which did not considered any sort of evidence towards re establishment of the culture. The
positive aspect of this particular article was that it has given the information that there is a need
of changing the existing culture which has been followed by United kingdom’s banking sector in
order to build the trust and remove dishonesty.
According to the viewpoint of Alain Cohn, Ernst Fehrand and Michael AndreMarechal,
(2014), honesty can be considered as the significant component when it comes to trust any other
individual but within banking industry it has been analysed to that there are ample number of
scandals that came in front that involved fraud. Many of the commentators has given this
information that this has become the business culture of financial sector but there was no
evidence which was placed for the same approach. It was clearly show that banking industry
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what required making or re-establishing the culture considering honesty as the main point
because then only e trust of clients can be built in much effective and efficient manner.
5. The collapse of Icelandic banking system; Did the international community pretend that
facts from reality were other than they were
Positive aspects of this particular article is that it has helped in delivering the information about
collapse of Icelandic banking system where government of Iceland played the essential role.
As mentioned by Marsson, (2013), the biggest reason of collapse of Iceland’s largest
banks in the year of 2008 was said to be actions taken by government of Iceland. it was found
that government did not become able to identify particular problem and was continually
neglecting the overall mistakes that it has made, which resulted into to dishonesty where PR
campaigns and speaking reality was said to be something crucial that was found. In order to
enhance the growth of the economy it was required to take less risky decisions and establish a
sustainable economic growth even in the time of financial crisis.
6, Does religiosity matter to value relevance? Evidence from US banking firms
This particular article has showed the value of assets that could help in removing bias
culture which was followed by United kingdom's banking sector.
As mentioned by Lamia Chourou (2018), religiosity is considered to be a crucial element
that stays linked with evaluating multiples investors towards their valued assets which may help
in managing biases. However, it was found that investors that have perceived a major role
towards religiosity particularly ethicality they have managed accounting bases and also price
accounting estimates as well.
7, Many faces of bankers identity; how not to study dishonesty
This article has made it pretty much player about CFM like it was not ruled out but there
was also no proper justification that was given to control the group like many faces of bankers
identity that could help customers and building trust.
The information which has been given by Marek A. Vranka and Peter Houdek, (2015),
there are various alternative explanation that can be given towards efforts that has been observed
by CFM that was also not ruled out. It was also pretty much clear that the conclusion that has
been given by CFM study was not being justified clearly because the difference which has been
observed can be caused by different reasons like rhyming the control group with free time and so
on.
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8. Honesty, integrity and banking transactions
The information that has been presented by this particular article was that the fraudulent
activities a directly connected with dishonesty within individual belongs to a private or
government bank it is required for the individual or the bankers to take into consideration of all
the rules and regulations like confidentiality of personal information in order to keep up the trust.
As mentioned by Herbert Smith Freehills LLP, (2013), it was confirmed in high court by
Mr Justice Sales that following the instructions given by Jeremy stone v National Westminster
Bank PLC 2013 EWHC 208 (Ch), the taking into consideration of different banks processes and
the instructions given by him can be helpful for private bankers to deal with the clients in an
honest way and may not become a part of fraudulent activities. It is pretty much clear that
honesty is something that a banker whether he or she belongs to a private or government bank ok
that it is his role to keep the information much more confidential that has been given by clients.
9. Bank bosses must ensure honesty is best policy
Article has shown that it is must required for all the banking sectors whether they belongs
to United Kingdom or any other sector to develop an effective policy that ensures honesty and
keep up the good work that would help them in building trust of the customers.
According to Patrick Jenkins, (2017), take information given by any individual has
become a worst euphemism for lying, and it has also become fashionable in the culture of
bankers that they started admitting that they lie. Therefore considering long term decency over
short term profit sharing can be helpful for showing consistency towards honesty in relation with
investors, staff, and customers including media.
10. Is ethical finances the answer to the hills of the UK financial market? A post crisis
analysis
This article has given the information about dark side of United kingdom’s banking sector it
was pretty much needed for the management to take into consideration of proper governance
system to improve the confidentiality and increase the trust.
As the information given by Abdul Karim Aldohni, (2018), the year of 2008 where financial
crisis took place has effectively exposed the financial sector’s dark side of United Kingdom. It
has been found that following proper governance system can be helpful in holding individuals
who are in charge for fulfilling the different ethical commitments that has been given by
financial institute.
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Summary
Considering the above mentioned information, it is regularly being analysed that building trust
among customers is not that much easy and it is pretty much needed for banking sector of United
Kingdom Iceland Iran to take into consideration of proper governance system because then only
they may become able to deliver the best suitable services to the customers and develop
confidence among them towards building trust.
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REFERENCES
Books and Journals
Abdul Karim Aldohni, (2018). [Online]. Available through:
<https://link.springer.com/article/10.1007/s10551-016-3269-5>.
Alain Cohn, Ernst Fehrand and Michael Andre Marechal, (2014). [Online]. Available through:
<https://www.nature.com/articles/nature13977>.
Alison Lui. (2014). [Online]. Available through:
<https://www.researchgate.net/publication/270855006_Greed_recklessness_andor_di
shonesty_An_investigation_into_the_culture_of_five_UK_banks_between_2004_and
_2009>.
Herbert Smith Freehills LLP, (2013). [Online]. Available through:
<https://www.lexology.com/library/detail.aspx?g=aca6293e-f40b-4c21-8a38-
465e1676b029>.
Lamia Chourou. (2018). [Online]. Available through:
<https://link.springer.com/article/10.1007/s10551-018-3978-z#:~:text=Moreover%2C
%20the%20coefficient%20of%20FV1,susceptible%20to%20bias
%20(FV23).&text=In%20the%20banking%20industry%2C%20the,that%20involves
%20discretion%20is%20loans.>.
Marek A. Vranka and Peter Houdek, (2015). [Online]. Available through:
<https://www.frontiersin.org/articles/10.3389/fpsyg.2015.00302/full>.
Marsson, (2013). [Online]. Available through: <https://www.nature.com/articles/nature13977>.
Patrick Jenkins, (2017). [Online]. Available through: <https://www.ft.com/content/e70cfad2-
07ee-11e7-ac5a-903b21361b43>.
Shakeel Ahmed, Kenbata Bangassab and Saeed Akbar. (2014). [Online]. Available through:
<https://www.sciencedirect.com/science/article/pii/S0890838919300964>.
Soheil Kazemian, Jamaliah and HamidrezaVakilifard, (2019). [Online]. Available through:
<https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2018-0008/full/
html>.
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