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Due to this banks started experiencing liquidity issues and were unable to have the amount of money required to remain in business and were on the verge of its default. As a result of this, the government came out with a bailout plan to help the banks from experiencing bankruptcy. The bailout can be both beneficial and disadvantageous at the same time. Mostly governments tend to bailout those banking institutions that are too huge too fail and their failure can further increase the economic crises (Scott, 2012). But such policies are anti competitive in nature. This is because when the government bails out an organization, it tends to hold certain shares of the entity and have the right to make decisions. Due to this the government may choose to be very secure in their policies and competition may decline as credit flow to different individuals and organizations may decline and this can slow the process of economic improvement and
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The global crisis shook the very foundations of financial institutions and the stock market as share prices for small and large investment banks dropped significantly between mid 2007 and first quarter of 2008. Financial institutions lost nearly a third of their value in less than one year.
In the United States of America, their banking system is disjointed with each state having its own regulator and rules that govern the operations of the state subject to the National Banking act of 1863 (Miller, 2010). However, depending on the operations of a bank and the agreements and charter it has signed, its operations may be regulated by various states in America and by the Federal government.
The developments have offered banks a unique, central responsibility in the US financial environments. These roles include lending and deposit taking and other activities in the financial services sector. Banks control the bigger proportion of the deposits that are transferable as checks (Spong, 2000).
This study critically evaluates the effect of motivation of employees on the banking system. How the employees in the banks are kept motivated and what are the reasons that they are being motivated in the banking system. Some basic questions are being asked to assess whether the employees are motivated in the working place or not.
The number of authorized banks in the UK totalled to about 690 in 2004. Although the number of UK incorporated banks declined over the past decade there was a significant increase in their average size and financial strength. The total number of authorized banks increased largely due to the growing presence of European Economic Area (EEA) banks.
The current banking system is mainly concentrated on paper transactions and various forms of wire transfers. Any money that needs to be sent is delayed in proportion to the farness of its destination at least in the case of paper transactions. This delays business deals and this delay is also known to have destroyed many lives.
In every country, every functioning financial system including financial markets and intermediaries such as the banking sector helped to move that economy, but how these two sectors contribute to the entire financial system and the economy differs significantly from one country to another. China has undertaken to keep their currency undervalued.
Those involved with the system have various functions which include the taking of deposits and also lending loans to those who would like to acquire them. This service is mostly within the commercial banks. Other functions include banks which specialize in