Ethical Dimensions: Employees | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE D: ETHICS IN BANKS AND FINANCIAL INSTITUTIONS
Ethical Dimensions: Employees - Bank Ethics Ethical Dimensions: Employees 1. Abuse of Official Position Employees must not misuse their official position for personal gains. This includes insider trading, leaking proprietary data, or accepting bribes. Example: A bank officer using non-public financial reports to advise friends on stock trades is engaging in insider trading. 2. Insider Trading Insider trading refers to using confidential company information for trading securities. It is unethical and illegal. Example: Knowing about a pending acquisition and buying stocks beforehand. 3. Proprietary Data Bank employees have access to proprietary data and must maintain its confidentiality. Example: Sharing client loan application data with competitors. 4. Bribes and Corruption Accepting or offering bribes to influence decisions is unethical and criminal. Example: A loan officer approving a loan ...