The present financial meltdown offered an opportunity for the central banks to act as protectors on the monetary system. However, the policymakers together with journalists do not take the role of bank seriously in stabilizing the economy and offering a platform for growth in future. Some economists cite the money supply’s nationalistion as a cause of the cycles of business. There are two major schools of thought opposing the present practice of the central banking. A hundred percent reserve banking authorizes that full amount of every funds of depositors is available in the reserve; that is as cash or even other assets that are highly liquid, each time the depositor had the authority of withdrawing them on demand, such as a current account (McGivern, 2009). This would actually do away with or at least reduce to some great extent, the finial risks that are associated with the bank, as all the money that is required to pay the depositors all the times would be in the banks’ reserves. In addition, this kind of banking would do away with the need for a lender of last option; for instance a central bank, which is usually required to support the system of banking during periods of systemic danger or even economic contagion. According to the free banking, it is the politicization and monopolization of the supply of money that being about economic instability and nothing erratic or immoral is per se if the banks produce their own currencies following competition and the danger of insolvency. The public perceptions as regards banking and the financial crisis is important as much of the discussions between the two viewpoints is on an empirical contention regarding the level at which the general public acknowledge that the demand deposits are lent out by the commercial banks as loans. When we take a look at the hundred percent reserve position, we find that the development towards the fractional reserve loaning took place via legal plunder and scam. In the viewpoint of the free banking, it is due to the fact that the banks have given response to the clients’ desires or wishes for instant access funds that have a positive rate of interest. Until presently, this has been on the basis of assertions. The aim of this study is mainly to obtain some preliminary empirical evidence as regards the attitude of the general public towards the banks in the United Kingdom and the financial crisis. Research objectives The thesis of this research has some specific objectives which are mentioned below: To examine the potential of banks in the United Kingdom. To examine the present or available financial practices of the United Kingdom population such as: Current accounts; they are in need of the current accounts for the purposes of their daily operations in which they receive funds such as benefits, wages, pensions and they make payments of utility bills via direct debits and many more (Proctor, 2008). Personal financial accounts; the people of the United Kingdom need to borrow the funds for their individual financial needs. They require the money for purchasing vehicles, personal and consumer loans, mortgages and home finance, and household appliances. Business finance; it is true that the business community require funds for the purposes of investment. The British people needs the development of properties, setting up of new businesses, expanding the available ones, purchasing of the stock for the warehouses as well as shops, purchasing the very costly medical equipment in the hospitals. To examine the way
This survey will follow a specific kind of design that most fits the kind of study being carried out and one that is likely to give the desired results, with the costs and time together with some other important aspects of research taken into consideration…
According to Mavrakis (2009, pp. 2 – 5), Islamic finance has emphasised on trying to remove completely any interest involved in financial transactions. The Quran, which is the Divine revelation presented to Prophet Mohammed, who is the Prophet of Islam, expressly forbids charging of interest, or riba, and Prophet Mohammad himself emphasised on this as mentioned in the Hadith, which is the other source of Islamic law, the Shariah.
The financial services sector has been a major player in global financial services, and any uncertainty and instability is likely to result in an equal level of uncertainty and instability in the global financial system. During the 2008 global financial crisis for example, the UK and US markets (two of the biggest financial services sectors in the world) were the first to start suffering.
However such banking regulations proved to be less influential during the occurrence of the current financial crisis. Such banking regulations could not prevent the crisis which resulted from the recent economic downturns and overall global meltdown. Banking regulations failed to bring back the confidence of mutual trust investors and could not prevent the breakdown of short financial transactions (Schmidt-Hebbel).
They have made the society to be increasingly integrated into a single community. The sharing of information and products has greatly affected the standards of living of individuals. Populations that did not have access to quality products previously have had a chance to benefit from the same through the free flows of products across the globe.
FSAs Role towards the Collapse of Global Financial Services Industry Introduction The collapse of the global financial services industry in 2007 is also known as global financial crisis. By mid 2007, the financial disorder with its rigorous liquidity and credit crunch seemed to detain to financial markets and institutions.
Government bodies all over the world have been hit hard by the 2007 global financial crisis. The UK economy has not been any exception as the condition has become extremely volatile. The economic crisis has proved the enormous monetary loss that is associated with the collapse of the global financial stability, and has enhanced its importance as the stepping stone towards economic growth.
2008). Obviously a sudden crash of this nature will compel the experts to question the fundamentals of the business framework whereby auditing forms the critical part of it. The primary task of external public auditors is to carry out fair value assessments of the accounting statements and assess the risks of the banks by getting deep into their credit & liquidity risk management framework and raise alerts as applicable.
s largely on account of the reduced market entry barriers and a positive swing in demand for investment advice from consumers who need professional guidance in choosing from a wide range of financial products available in the market. The role of financial advisors in such cases
al banking policies as things that are not closely linked with cultural attitudes, but which have been allowed to roam free in search of growth and profit. In addition, the focus will incline more on the financial crisis worldwide and more so, on the financial markets and
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