Impact of Financial Crisis on the Banking Sector of the UK

Research Aim and Objectives

Aim

The aim of the proposed study is “To evaluate the impact of the financial crisis on the banking sector of UK”.

Objectives

To evaluate the origin and expansion of the financial crisis of 2007/09

To determine the effects of the financial crisis on the banking sector of the UK.

To assess the structural reforms which have been considered by the UK banking industry

Main Academic Literature

The investigation of Kauko (2012) determined that the financial crisis of 2007-09 has resulted in significant implications on the global economy due to decline in different economic activities, including economics dissertation help. The immediate trigger of the financial crisis was the bursting of the United States housing bubble that encouraged high rate defaults. It collapsed the world financial and banking structure along with other related industry. Claessens and Van Horen (2015) argued that the financial crisis leaves a significant impact on the global banking system so as the market capitalization of global banks has been reduced by more than 50% that is reached to $1.6 Trillion from $3.6 Trillion. Therefore, various money lenders and insurance companies have recorded significant downfall in their businesses. In the context of the United Kingdom, the investigation of Francis and Osborne (2012) determined that Northern Rock medium has been identified as the first target of the global financial crisis. After that, several other banks include HSBC Holding Plc, Royal Bank of Scotland, Barclays Plc and others have recorded failure. In the responses of the banking crisis, the government of UK has incorporated various banking reforms like bailout package, policy reforms, structural modification and many more within banking sectors of UK (Flannery, Kwan and Nimalendran, 2013).

Synopsis of Project

The proposed project will determine different drivers of the financial crisis, along with their implications on the banking system of the UK. It will impact of the financial crisis on the banking sectors so as banking organisation can manage the operational efficiency with the help of an appropriate contingency plan. This project will disclose the impact of the financial crisis on the operations, profitability and other banking firms. Furthermore, this investigation is going to discuss different policy reforms in the banking industry of UK.

Reference

Claessens, S., and Van Horen, N. (2015). The impact of the global financial crisis on banking globalization. IMF Economic Review, 63(4), 868-918.

Flannery, M. J., Kwan, S. H., and Nimalendran, M. (2013). The 2007–2009 financial crisis and bank opaqueness. Journal of Financial Intermediation, 22(1), 55-84.

Francis, W. B., and Osborne, M. (2012). Capital requirements and bank behavior in the UK: Are there lessons for international capital standards?. Journal of Banking and Finance, 36(3), 803-816.

Kauko, K. (2012). External deficits and non-performing loans in the recent financial crisis. Economics Letters, 115(2), 196-199.

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