We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

The impact of the Financial Crisis on Banking Industry - Research Paper Example

Comments (0)
Summary
The impact of the financial crisis on banking industry The financial crisis of 2007-08 has severely affected the banking industry in the US and also across the globe. The banking and other financial intermediaries are facing significant amount of reduction in the amounts of disbursable funds, creating a negative effect on the level of investment in the economy…
Download full paper
GRAB THE BEST PAPER
The impact of the Financial Crisis on Banking Industry
Read TextPreview

Extract of sample
The impact of the Financial Crisis on Banking Industry

Download file to see previous pages... In 2009, the “Federal Deposit Insurance Corporation” failed almost 305 banks. Even though this is comparatively small proportion of the entire banks, the tendency that this reveals is the actual reason for concern. This amount is greater than 12 times the amount, 25, which failed in the year 2008. Among these banks which were forced to shut their doors in 2008 was “Washington Mutual”; the leading bank to date which has been compelled to shut their doors. Nevertheless, they were capable to get away total amount of liquidation by being engrossed by “JP Morgan Chase”. This benefited the “JP Morgan Chase” since this gave them a trail on the west-shore which they had been requesting for some time (Bexley et al., 2011, p. 2). Due to these negative externalities, the problem of credit crunch has been generated which has reduced the amounts of investment and investable funds across the globe. Also the problem of subprime lending has also been aggravated in global economies, mainly in US which has reduced the banking transactions in the country (Bexley et al., 2011, p. 6). ...
to this high level of inflation, consumers are not getting capable of purchasing costliest goods and services and hence business organisations which are engaged in production of these goods and services are leaving the industry. Again this is reducing the level of income in the country and hence the level of demand for necessary goods and service. The Fed is expecting to have a subdued in the next few years because of weaker level of real economic activities prevailing in the country. But the Fed is expecting that the rate of inflation will remain unresponsive in newt few years due to the fact the American economy is still under the curse of financial and economic crises situations (Minutes of the Federal Open Market Committee, 2011, p. 1). Future solutions: Again, it is expected by the researchers that the rate of interest will remain comparatively low as well as stable in the next year following the rapid growth of developing countries. This increasing growth of countries such as India and China will increase the volume of trade in favor of USA. Also the corporate bonds and the share market are expected to be much stable in the next year than it is now. These aspects are expected to improve the performance of the banking sector in the US (Elwell, 2011, p. 4). The rate of interest on “91-Day Treasury Bills” in the next year is expected to be 0.2% and that of “10-year treasury notes to be 3.5% (Fiscal Year 2013: Analytical Perspective: Budget of the U.S. Government, 19). These improvements in the economic variables of the country is expected to create significant amount of positive effect on the increment of the level of private as well as public consumption spending of the country. Consumption spending is most likely to remain the most crucial part of the ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The Financial Crisis in Greek Banking Industry

In the article, it is stated that higher risk assets give higher returns in comparison to low-risk assets like treasury bills. It forms a basis for the decision of asset allocation and making an estimation of interest rates in financial markets. The entire banking industry came under pressure due to credit turmoil.

23 Pages(5750 words)Dissertation
The Financial Crisis and Its Impact on China
Assumptions concerning the safety of the Chinese economy have been proven false in the tsunami of the financial crisis. China was expected to be exempted from the destructive recession in the West. It was also believed to be immune from the economic fall because of its insulated banking sector and ‘closed’ secure capital account.
6 Pages(1500 words)Research Paper
Financial Crisis of 2008
The world economy is currently at its worst with most countries hit by the pinching global recession. Economists define financial crisis as a significant downturn in activity that affects all the economic segment, the decline in activity normally last for a certain period, which could be more than months or years.
8 Pages(2000 words)Research Paper
Changes in Gulf banking industry after global financial crisis
Changes in corporate governance Besides corporate governance, management of the culture and language used for communication within the organization plays a very important role in the success of the institutions in the long run (Solomon, 2007). After the banking industry faced the effects of financial crisis, several research works were made on the influence of language and culture of the organizations.
4 Pages(1000 words)Research Paper
Banking Industry Meltdown: The Ethical and Financial Risks of Derivatives
Deontology is the best ethical philosophy for understanding the banking industry meltdown. The theory focuses on rights of member of the society and on intentions of actors. It argues that an actor ought to frame actions in order to respect rights of other members of the society and its basis defines those things that people should not do.
6 Pages(1500 words)Research Paper
The last financial crisis 2007-2009
The essay will mostly be based on the economic situation of Qatar, one of the countries in the Gulf area, as an example of how the last global financial crisis affected the countries; economy. Although the financial crisis began in the Western countries, its impact was felt across the world, with most economies feeling the impact.
12 Pages(3000 words)Research Paper
Impact of the Global Financial Crisis of 2007/2008 on the Qatari Economy
The reasons that had led to the Recession have been discussed in details. The key reason for the crisis was the bursting of the housing bubble in the United States. The empirical data and analysis of the factors that had led to the crisis has been covered.
10 Pages(2500 words)Research Paper
Banking Industry
Therefore, he helped in establishing the bank which opened in Hong Kong in March 1865 and thereafter in Shanghai a month later. Thus began the journey of HSBC. After establishing some more branches in Asian region, looked towards Europe, North America and gradually towards the rest of the world.
4 Pages(1000 words)Research Paper
Current state of the U.S banking industry
The Federal Reserve in the U.S. plays the role of a Central Bank and it thus supervises the state’s supply of money and also other matters like international reserves, domestic banks, holds reserve deposits and controls the
2 Pages(500 words)Research Paper
HOW DID THE FINANCIAL CRISIS IMPACT THE IMAGE OF SWISS BANKING
For Swiss banks, conducting business and realizing profits have turned to be highly expensive and difficult. Swiss banking systems have also been forced to manage the adverse impacts of various Swiss economic shocks, in line
3 Pages(750 words)Research Paper
Let us find you another Research Paper on topic The impact of the Financial Crisis on Banking Industry for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us