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.
Nobody downloaded yet

Banking Crisis - Research Paper Example

Comments (0)
The Federal Reserve sets the nation’s monetary policy to promote the objectives of maximum employment, stable prices, and moderate long-term interest rates. (Federal Reserve System. In a country’s economy the factors like inflation, interest rates and employment are interdependent. …
Download full paper
Banking Crisis
Read TextPreview

Extract of sample
Banking Crisis

Download file to see previous pages... It is important to ensure close co-ordination between the Federal Reserve and the Government, because monetary policies should be complementary to fiscal policies for achieving the country’s objective of sustainable and long term economic growth. Evolution of Central Banking The concept of Central Bank evolved in the second half of the 19th century. The banking institutions started with commercial purposes or government banks have transformed into central banks in most of the countries. Bank of England model has been adopted by several countries. Central banks became the lender of the last resort and started issuing notes. In the aftermath of the great depression the independence of the central bank has been curtailed in US. However, gold standard and laissez faire brought back independence to central bank to ensure monetary stability. The US Federal Reserve came into existence in 1913 through passing of The Federal Reserve Act. Panic in 1907 in banking circles gave rise to demands for reforms in banking sector and the National Monetary Commission was set up for this purpose. In mid 1990’s “in the wake of Russian default, the Fed lowered short term interest rates to minimize the consequences of international financial conditions for the US economy and to ameliorate those conditions abroad.” (Neely 35) Many world countries have agreed to adopt gold standard system in Bretton Woods Conference in 1914 which envisaged economic discipline among the nations. The role of central bank has increased substantially since stability of the currency is an important factor in international finance. But, gold standard has failed due to devaluation of currencies by several countries to protect their national economies. The International Monetary Fund created in Bretton Woods in 1944 with the aim of preserving global monetary order introduced fixed exchange rates of the currencies in relation to US Dollar or gold. This system has also failed due to various practical difficulties. Introduction of fluctuating exchange rates later coupled with internal economic factors has increased the clout of central banks further and most of the countries started adopting fluctuating exchange rate system based on demand and supply. Paul Krugman stated “Under the "floating" exchange rates we have had since 1973, exchange rates are determined by people buying and selling currencies in the foreign-exchange markets. The instability of floating rates has surprised and disappointed many economists and businessmen, who had not expected them to create so much uncertainty.” From the simple bartering system, the monetary order has undergone changes over years in tune with the dynamic economic environment, technological developments and introduction of exotic derivative products in banking and financial services sector. In determining the value of money in modern economy, the fiscal measures of governments and the monetary control measures of the central bank play very crucial roles. David Kupelian stated “Despite the varied theories espoused by many establishment economists, it was none other than the Federal Reserve that caused the Great Depression and the horrific suffering, deprivation and dislocation America and the world experienced in its wake. At least, that’s the clearly stated view of current Fed Chairman Ben Bernanke.” The globalization phenomenon gaining momentum during the recent years ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
The Euro Crisis: Euro vs. Non-Euro countries (e.g. Belgium vs. UK) : Implications for Business and US Marketers
There are above 500 million residents in the EU who comprises of 7.3% of the population of the world (Osterreichische Akademie der Wissenschaften, “European Union reaches 500 Million through Combination of Accessions, Migration and Natural Growth”). As of 2010, the gross domestic product (GDP) of the EU was 16,242.25 billion USD, which represents around 20% of the global GDP in terms of purchasing power parity (PPP) (International Monetary Fund, “Report for Selected Country Groups and Subjects”).
6 Pages(1500 words)Research Paper
The European Debt Crisis
However, some peripheral European states accrued enormous unjustifiable losses and increased public debts, risking the entire European financial system and the viability of the euro. The weak implementation of financial regulation created a sovereign debt crisis.
4 Pages(1000 words)Research Paper
The impact of the Financial Crisis on Banking Industry
Also the lower level of investment is creating negative effects on the level of production and thus on the amounts of banking deposits (Bexley et al., 2011, p. 2). This paper is aimed at describing the effects of the financial crisis on banking industry. The issue and positive and negative externalities: The list of disturbed banks on the watch list of the regulatory agencies is at a strangely high stage as well as is the absolute number of banks which are bankrupt and are forced to close.
3 Pages(750 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
Banking Crisis
In this process, multiple banks & financial Institutions gradually increased the exposure of their investment capital to the credit & liquidity risks to earn higher returns. They transferred the risks (apparently!!) by practising dependency on unregulated investors through mechanisms like SPVs (Special Purpose Vehicles) and SIVs (Special Investment Vehicles).
20 Pages(5000 words)Essay
Risk Management and Banking Crisis
The current sub-prime crisis in the USA is a painful learning for all Banking Risk Management professionals on how stretching the strings in uncontrolled manner can result in absolute rupture. The crisis is perceived to have occurred due to inadequate Credit Risk Management when lending to Sub-Prime customers that are individuals/companies who do not have clean credit history or regular source of income.
8 Pages(2000 words)Essay
Financial crisis
Many economists believe that the current recession may continue longer than anticipated. The financial institutions need to be blamed themselves for the current crisis. The crazy lending habits of
4 Pages(1000 words)Research Paper
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
International Banking
Furthermore, international banking is almost synonymous with international financial markets as both augment each other. These foreign customers can be either individuals or business companies. Individuals work with international banks for various reasons such as
9 Pages(2250 words)Research Paper
Let us find you another Research Paper on topic Banking Crisis for FREE!
Contact us:
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