Banking Sectors and Financial Crisis in the UAE and GCC Countries

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

Financial crisis is really a major concern for all economies in the world. Every time a crisis occurs, companies, banks and financial institutions should draw their own lessons, because if the lessons are not recognized, they may still go on the trail of failure of

Since the crisis of 1933 the United States has never been the same, following with the crisis of 1980 and 1990 and relapsing with the crisis of 2008. With banking crisis’ the United States economic history isn’t the best. Our country's banking and economic status depends on what we do and don’t. Bank crisis’ are very rare. Being rare, bank crisis’ are very detrimental. Banking crisis’ have greatly impacted the economy, destroyed families, left people homeless, and even destroyed future generations. However, the U.S. has definitely learned a thing or two as well as increased its preparation and security due to these banking crisis, that can surely allow a efficient recovery and better preparedness if a crisis were to occur again.

To understand the development and the impact of the financial crisis, the following paragraph gives a general overview about the timeline of the financial crisis and the series of reactions which caused, at the end, the failure of the American banking system and led to a worldwide economic downturn with the result of the global economic crisis. The topic of this paper is the failure of the American banking system, but as the banking systems of the whole world are interdependent, the whole situation and the whole crisis has to be investigated.

Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have

Banking, from its early days of inception, has undergone rapid changes, most especially within the past ten years, also as a result of major world events such as the 9/11 terror attacks and the consequential reactions of governments and within the industry itself. (Morgan McKinley UK)

The worldwide impact of the recent financial crisis outlines the importance of having a decent understanding of crises. Latest episode has definitely showed that status of economic as well as the financial performance is greatly affected by financial turmoil. During the crisis, world stock markets have been collapsed, largest financial institutions have been bought out or fallen, and the wealthiest nations like UAE, UK of USA had to stand up and aid their financial systems as well as the economic ones. World economic activity was a common topic in the newspapers for many years after it has occurred. “The present financial crisis is a culmination of many systematic factors. The economic crisis has made us to believe that world

Financial crisis of 2007-2008 is widely considered to be the worst financial crisis since the Great Depression of 1930s. The origin of this big storm dated back to the high home prices of the United States. After America’s entire investment banking system was attacked, many industries such as auto industry also went bankrupt. Unfortunately, it spread quickly to the whole world, causing huge damages to the global economy. Therefore, my study will focus on the effects of the financial crisis of 2007-2008. Not only the effects on advanced and developing countries, but also the effects that can still be felt today.

In this section, the impacts of the financial crisis from different orientations will be shown in the first place. Then, the role of the failure on governance of UK banks will be analyzed.

“Risk is defined as the potential of losing or gaining something of important value. Values can be gained or lost when taking risk resulting from a given action or inaction, foreseen or unforeseen” (Kungwani, 2014 ). Some argue that this simple definition was not understood until 2008, in which the global banking crisis cried out a global need for stringent risk management practices to be put in place across all organization not matter how big or small they may be. A strong, healthy and resilient banking system is key to economic prosperity, progress and development as banks are often at the forefront between investors and savers. However, in 2008 the once resilient banking system came to a great tumbling collapse due several key failures

The global financial crisis that was experienced in 2007/2008 affected many nations of the world. Some countries such as America and most European countries were hard hit since they were directly affected by the crisis. Other countries especially those in Asia and Africa were not adversely affected as they were not directly hit by the crisis. This crisis started in the United States after the housing bubble busted. Although the bursting of the housing bubble was the main cause of the crisis, there were a series of events that preceded it.

The banking sector is faced with increasing challenges as the modern day society evolves. In the aftermath of the economic crisis, the population came to become more demanding of the banking sector. In other words, the various categories of stakeholders such as customers, employees, business partners, the public and so on became more vocal and forwarded more demands. The new challenges of the banking sector refer to the operation in a means in which they create benefits for the overall wellbeing of the communities in which they operate.

The banking industry has always been susceptible to economic fluctuations. The subprime mortgages crisis, that started to be felt in 2007 and is still going on, is not an exception. Although it had consequences all over the world, the main effects were seen in American financial markets, followed by the European ones. The top ten banks of the world also suffered the consequences; these can be seen in the changes occurred among these leading institutions in terms of market capitalization and also total assets. After several years of believing in free markets, capitalism and no government intervention, the whole scene has changed. During this period, the governments, acting together with their respective central banks, assumed

After world financial crisis several important developments/ reforms and policy measures introduced by the government. Bank enters into the banking Industry in organized form and their contribution in Indian Economy is very participative form for activity of banking Business. My main objective of the study is to trace outgrowth of banking industry and there advances after world financial crisis (i.e. 2008) and also assessment of banking advances.

This study examines the principles and criteria Islamic banking operates in providing their financial services which make different from those of conventional banks.