Got a tricky question? Receive an answer from students like you! Try us!

Banking failures - Essay Example

Only on StudentShare
Masters
Essay
Finance & Accounting
Pages 7 (1757 words)

Summary

This study aims to analyse the need of regulatory framework for the UK banking system in order to ensure financial stability and reduction of usage of public funds for recurring crisis; to determine the effect of corporate social responsibility and ethics hazards on the banking system and regulators to mitigate banking failures…

Extract of sample
Banking failures

The research is based on the recent International financial crisis of UK banking system 08/09, which failed to adhere to existing financial and national regulations. The significant impact of shadow banking system that facilitates complex financial structures, derivatives and asset securities have resulted in extreme trading risk as compared to the normal banking operations. The banking system is regulated by the competition commission, which summon operations of the banks towards a complex monopoly for banking giants as compared to the smaller banks. Banking failures are termed as shutting down the operations of the bank due to inability of paying of its depositors or have lesser funds to meet its creditors and regulators obligations. The distributions of its assets and liabilities are evident due to insolvency of the bank which implicit that its assets are undervalued as compared to its liabilities at market value. The banking regulations are accredited by three organisations mainly FSA (Financial Services Authority), Treasury and Bank of England. The interventions of the regulators were limited to aggressive situations only but since the banking crisis, the regulators are alarmed with the current regulation system. The most critical drawback for increased regulations in United Kingdom is enforcement of international banks to operate in lesser regulated environment offshore. This could result in a huge impact on the employment and financial institution of the country and across the globe. ...
Download paper
Not exactly what you need?

Related Essays

Dissertation Proposal
For making the financial base robust, the government has to use the sources available to them efficiently and should do sector wise development. In the era of globalization, when the economies of the countries connected with each other, the problem in one country can create problem to the whole world. In the year 2007, the economy of the United States has come under trouble. The reason behind the financial depression was that a large number of people got default, as they were unable to pay their housing loans. The bad debt amount of the bank increases at a level that the banks had to declare…
6 pages (1506 words)
Research Proposal
The Sarbanes-Oxley Act of 2002 (SOX) is the legislative solution to the ethical scandals, such as Enron, Tyco, Qwest, Global Crossing, and WorldCom, involving accounting irregularities and fraud (Stephan, 2007). This Act implements extensive changes to public accounting and corporate laws, and also expands corporate governance extending the responsibilities of senior executives and board members. SOX has changed the current business environment. In the past business ethics was viewed as important (Bies & Forte, 2010). Now, business ethics is mandatory, but where is the map for business…
6 pages (1506 words)
The SEC's Condorsement" Proposal
In this study, I would discuss about the IASB as well as the FASB and their relationship with each other. I would then evaluate the SEC proposal and express my opinions about the same. IASB & FASB and Their Relationship with Each Other In year 1973, the International Accounting Standards Committee (IASC) was set up for the purpose of maintaining standardization in the accounting principles all over the world. In 2001, the International Accounting Standards Board (IASB) was constituted subsequent to the restructuring of the IASC. The main goal of the IASB was to prepare and issue standards to…
The SEC's "Condorsement" Proposal
The main objective of using accounting standards is to make the preparation of the accounting statements of all the companies as per same accounting methods which would in term help in comparing different companies. It also ensures transparency of transactions, accountability and reliability of the transactions. In this project the convergence of the FASB and IASB has been discussed with the view of condorsement of the accounting standards. Financial Accounting Standards Board (FASB) Financial accounting standard board is an organization which establishes financial accounting standards.…
3 pages (753 words)
Audit proposal
This therefore shows that an audit should be frequently undertaken and in a very concise manner. Another reason it should always be undertaken is that it helps mitigate the possibility of any risks in the operations of the business. In line with the above, an auditor selected to conduct one to an organization needs to write an audit proposal to convince the management on the importance of conducting the audit and how cost effective they are likely to do it and achieve the organizational objectives. A proposal must be detailed and thorough, prepared in an ethical and professional manner…
3 pages (753 words)
Management Dissertation Proposal Proforma
Yes Degree Programme: MBA in Finance & Accounting Specialization Track: General _______ Finance -X- Marketing_______ [Please check as appropriate] Other___________________ (please specify) DATE: January 10, 2012Aims of dissertation Background of the research Financial markets across the world have been reporting increasing integration within the as well as across different boundaries. There are several factors that have drastically grown the financial markets in the last decades particularly in the developing countries and some of these factors are globalization, deregulation and advancement…
6 pages (1506 words)
Research Proposal
For a turn-around investment, it got a great opportunity through the ideal Cogitel set back. The company’s profitability soon increased, as the company stock was taken over by Zeghal and turn-investment team. Through this investment it obtained a qualifying certificate which ultimately helped them to gain profit. As a result, they transformed into a regional packaging leader from a family owned business through this opportunity. Cogitel implemented its growth through acquisition strategy TurnInvest and Swicorp both jointly acquired a major part of venture in a new holding company- Altea…
8 pages (2008 words)