Financial management is a critical aspect of the banking industry, as it involves the proper planning, organizing, and controlling of a bank's financial resources to achieve its objectives. The primary objective of a bank is to maximize shareholder wealth, which is achieved through the generation of profits. However, banks also have a social responsibility to serve the financial needs of their customers and the wider community. As such, financial management in the banking industry must balance the pursuit of profits with the need to maintain the trust and confidence of customers and other stakeholders.

Effective financial management in the banking industry requires a deep understanding of the various financial instruments and markets in which banks operate, as well as the regulatory environment in which they operate. It also requires the ability to adapt to changing market conditions and customer needs, and to continuously seek out new opportunities for growth and innovation.