Lloyds Banking Group Integration Essay Example | Topics and Well Written Essays - 2000 words - 1

Lloyds Banking Group Integration - Essay ExampleOne of the outcomes of the trapping Bubble Bust and the concomitant recession was the recognition of a pressing need for industry self-regulation bolstered by commensurate statutory and institutional reforms (Global finance 2009). Especially, the monetary markets in Europe today are governed by a general agreement and consensus as to the inevitability of internal and external monitoring of the banks and financial institutions (Global Finance 2009). The banks in Europe are increasingly under the state and stakeholder driven pressure to affect structural and remuneration reforms that positively discourage and restrain native risk taking and promote productivity and efficiency. Lloyds Banking Group, which performed miserably during the subprime mortgage debacle, is no way different from any other bank, as far as the need for restructuring and going lean is concerned (Fleming and West 2010). This essay intends to analyze as to varied or ganizational structures that the Lloyds Banking Group could resort to and the accompanying dish outrial, cultural and performance related to aspects associated with the proposed options. Lloyds Banking Group It goes without saying that Lloyds Banking Group is indeed a prominent and important British Financial Institution. Lloyds Banking Group came into existence, after Lloyds TSB acquired HBOS in 2009. The British Government commands surface to a 41 percent stake in the organizations shareholding. Lloyds Banking Group comprises of four business divisions that are Retail Banking, Wealth & International, Wholesale and indemnity (Lloyds Banking Group 2010). The bank has business interests and operations scattered around a significant part of the world, including Asia, Middle East, US and Europe (Lloyds Banking Group 2010). Until now, to sell, promote and manage its highly diversified range of financial services and products, the group has predominantly relied on a divisional model, which is primarily a vertical structure, with its advantages and the accompanying bureaucratic arrangements, organizational hassles and inflexibility. Lloyd Banking Groups behemoth size is what worries the regulatory bodies, organizational management and the common and institutional investors (The economist 2010). Even as per some of the unprogressive estimates, Lloyds Banking Group has a hold over say 1/5th to 1/4th of the overall UK market for mortgages, small business loans, personal loans, sell accounts and credit cards (The Economist 2010). Added to this, when one takes into consideration the Groups constrained borrowing options, Lloyd Banking Group qualifies to be called a task, which is still far from being over (The Economist 2010). No wonder, the Group is definitely in the need of a desperate restructuring job that boosts its organizational efficiency and profitability, thereby enabling it to assure sustenance with its peculiar(a) deposits and dried up borrowing source s. Need of Adopting the Right Structure It goes without saying that organizations and especially the financial institutions like banks are not static entities, but primitive structures that imbibe sustenance, support and nourishment from the external micro and macroeconomic environment and do react and respond to external and internal changes and stimuli (Earley 1997). It is this very ability of a financial institution to be sensitive to the economic and regulatory changes that ensure its success and viability in the long run. The busting of the