Effects Of Recession On Banking Sector Of China And United Kingdom

The UK had recently emerged from the recession 2007-2009, the economy is now recovering. During the recession, many businesses had struggled to survive. The strategies that businesses had taken during recession may affect their long-term profits. For example, as people spend less during the recession, businesses try to reduce their costs and reduce prices in order to encourage customers to buy their product e.g. Primark, M&S etc and many businesses have also closed down branches in order to maintain their

An economic indicator is defined by Investopidea.com (n.d.) as “A piece of economic data, usually of macroeconomic scale, that is used by investors to interpret current or future investment possibilities and judge the overall health of an economy”. Below are six economic indicators that affect Apple Inc. and its business decisions and strategies.

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

This paper will be defining the 2008 great recession and the economic impact which the United States wasn’t aware of. The great recession affected various businesses and others forced to increase prices or close doors immediately. Fiscal and monetary policies will also be discussed briefly in detail knowing the differences and determining the best course of action. Lastly will be implementing possible solutions to fix the economic problem and prevent any future recessions that could pose a devastating impact to economy.

The Great Recession began in late 2007 and quickly spread throughout the world. The downturn provided continuous high unemployment, a spreading foreclosure crisis, and minimal consumer spending.The crisis threatened the viability of financial institutions with deep exposure to defaults and foreclosures (Love & Mattern, 2011). Bank after bank were either closing down or merging just to stay afloat. This led to banks reducing their lending which made it both difficult and expensive to borrow money. This fall in consumption and investment led to businesses decreasing labor which further hurt GDP and unemployment saw an all-time high. This effect was not only felt in the United States. Countries that had exposure to the US also suffered from the

Recession is termed as a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. Based on the complete recession that took place few important points that I could gather in specific considering each type of recession are listed below. How it took place? Causes for it and what impact it had on the audience. Let me discuss about this in brief.

Recession is when the economy activity falls and the gross domestic product decreases. The recession happened because banks were able to create too much money, too quickly and used it to increased house prices, when banks were lending people high amounts of money many people could not pay the loans back causing the banks to go bankrupt. The recession is a really bad history in the US. The recession was from 2007 to around 2009 affecting many industries, financial institutions, people, and hospitality industry. Many large financial institutions in the country declared bankruptcy because they were heavily invested in mortgages. The collapse of house marketing had an effect on the U.S and banking systems. Many smaller known banks where force

Recession is a term that looms over any society at some point or another but what does recession mean for the economy, in short it is an economic decline. This essay will examine the meaning of recession and will discuss the fiscal and monetary policies that are used to pull economies out of recessions. The great Recession of 2008 will shed light on how these policies were successful at restoring economic growth and reducing unemployment.

On the 26th of November 2001, the National Bureau of Economic Research, declared that after ten years of economic expansion, the United States was in a recession as of March 2001 (Coplan 9). During the last quarter of 2001, the United States experienced a terrible tragedy; the 9/11 terrorist attack. However, economists believe that even if the terrorist attack had not taken place, the recession would have still been present, but it did in fact delay recovery. The recession of 2001 was by far different than all the other recessions. It was in fact, better than other recessions because the 2001 only lasted a quarter. Real GDP barley changed and the unemployment rates slightly rose (Nordhaus 2). It was found that banks have improved their performance during the recession, they were prepared for the worst this time around. During the 1990s, risk management became an important factor for banking discipline. Using risk managements, it gives the economy a potential to increase the stability. Thereby, banks benefited from an environment that rapidly declined short term interest rates, which enabled them to borrow at a lower cost (Schuermann 2). These risk managements played an important factor during the recession while impacting the United States economy in a positive manner.

The impact of the financial crisis in 2008 is so far , it has resulted in various industries have revived a shock, even many large companies have been forced into bankruptcy.Inflation is a result of the decline in the quality of life, the weakening of people 's ability to pay. The outbreak of the financial crisis from the United States and then spread to the world,so this essay analyzes the reason of the US financial crisis, it is equally applicable to the countries in the world and take warning,that is the lack of supervision of financial institutions in the United States.

Economic growth is defined as an increase in the GDP and standard of living over a period of time, and as indicated by those numbers, our GDP has been pretty steady, which is why the economy is not growing. Some people may not be able to experience economic growth. For example, if a person inherits a house from a family member that passed away, they might not be able to actually enjoy that increase in the standard of living because they might experience property tax. Another indicator of economic growth is an ability to increase a person’s leisure time. With an increase in more efficient technology, output time can increase. Meaning that when it previously took eight hours to complete the day’s quota, it could now take four hours, and the workers are left with four hours to do something else, but still make the same amount of money. A third indicator of economic growth is a change in the social norms of the country. In 1920, women were given the right to vote. In the 1970’s, women started working.

The “Great Recession” is commonly used to explain the massive economic contraction that occurred in the United States during the fourth quarter of 2007. However, the actions of the United States spanned to other nations, leaving massive effect on the global economy. One nation that took on serious financial burden during this recession was the United Kingdom. This nation first faced the effects of the Great Recession beginning in the first quarter of 2008. Overall, the initial mass effects on the nation can be attributed to the nation’s reliance on the financial sector. In fact, after partially stabilizing in 2009, the country struggled with a double-dip recession between 2010-12, and continues to struggle with some of these effects.

When comparing the economic growth performance of the United States and the United Kingdom, a major indicator is ‘Economic growth’, which measures the yearly rate of development rate of GDP using the

In September 2008, thousands of financial sectors all over the world went bankrupt like dominoes after the failure of Lehman Brothers Bank, which is also known as the Financial Crisis of 2008, caused the severe recession of the economies around the world. In order to help the country out of crisis, the central banks in different countries had to take measures to stimulate the growth of economy. The goal of this essay is to introduce the measures that Bank of England have taken in 2008 of financial crisis and will discuss the macroeconomics consequences and effects. Three measures taken by Bank of England will be presented in first section and how macroeconomics outcomes influenced by policies and objectives will be discussed in the second section.

According to the work examined in this study the global recession that occurred in 2008 and 2009 was partially a result of the financial industry's failure to be responsible for the decision it made in using financial instruments that were risk and very complex in nature. The culture of corporations were constructed on risk-based rewards instead of rewards that resulted in value for stakeholders. The financial risks that banks took on were not well comprehended by the public or regulators and the mass media also failed to understand the risks that the banks had entered into with certain financial agreements.