The Australian Banking Industry - Research Paper Example

The paper “The Australian Banking Industry” is an excellent example of a finance & accounting research paper. The banking industry is one of the most vibrant industries in Australia. It is the backbone of financial services. Australia boasts of having some of the best banks in the world in terms of service delivery and capitalization. As it is the trend with many business organizations, they are entering into the stock market in a bid to get capital for expansion and also to get public involvement in their running.

The government usually sells its shares, most of which is holds on a company in order to establish for instance Commonwealth Bank. This is done in order to involve the public in the running of major companies in a country and also to effect good management since government-owned corporations and enterprises are prone to abuse.The banking industry, therefore, is a major player in the economy whose securities are determined by various factors. The paper will take a deep insight into the banking industry in Australia and take into context the top five banks in the country.2.0 IntroductionThe global economic crisis has had a very big impact on various economies of different countries in the world.

The crisis is characterized by many elements some of which include inflation. This has resulted in the declining value of money. The buying power of the currencies has gone down at an alarming rate. This has also led banks to reevaluate their interest rates on loans and also change their lending patterns and terms. Unemployment is another characteristic of a financial crisis. Many organizations and businesses tend to retrench their employees in a bid to reduce their operating costs. In addition to this many of the organizations are not willing to employ additional staff.

This leads to unemployment and reduced levels of income for the people. This in turn reduces the buying power of the people which is a major factor that affects business organizations. There is also an alarming increase in the prices of almost all the commodities which usually starts with basic needs like food and housing.