Loan Classification, Provisioning and Debt Default Trend in Mercantile Bank Limited

With the help of conclusions described in the last chapter, recommendations are developed and designed to present personal and independent point of view for the betterment and development of the organization. Recommendations are integral part of report and become imperative for internship report. Findings and Recommendations for MCB are as follows which will help the reader to understand all the aspects of the bank.

The failure and crisis in the financial markets and institutions can be caused by many factors. One can be inefficient allocation of resources (Pilbeam, 1998). Every operation of financial institutions includes monetary transactions. Whenever there is a shortage of money; crisis start. Therefore for all the operations of financial markets and institutions sufficient

In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and

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

In the late 1990’s, there was a boom and bust on information technology stocks. Because of that, a mild recession happened in 2001. The mild recession made people have over confidence to the stability of financial system and the whole economy. Therefore, the authorities started to ignore the work of keeping financial stability.

Malayan Banking Berhad is the holding company and listed entity for the Maybank group with branches in Malaysia, Singapore and other international financial centres such as London, New York, Hong Kong and Bahrain. Maybank was established in 1960, and today is the largest company by market capitalisation on the Malaysian Bourse. It is ranked first among listed Malaysian companies and among the top 500 companies in the Forbes Global 2000 leading companies of the world. The Maybank group offers a comprehensive range of products services that includes commercial banking, investment banking, Islamic banking, offshore banking, leasing and hire purchase, insurance, factoring, trustee services, asset management, stock broking, nominee

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.

An unregulated banking financial institution might be fraud with unmanageable risks for the purpose of maximizing its potential return. In such a situation, the banking financial institutions might find itself in a serious financial distress instead of improving its financial health. Consequently, not only the depositors but also the shareholders will be deprived of getting back their money from the bank. The deterioration of loan quality also affects the intermediative efficiency of the financial institutions and thus the economic growth process of the country. This the reason for which the banking financial institutions are being regulated in all countries. The banking financial institutions are also the most regulated among all types of financial institutions in all countries, because of their substantial role in payment mechanism (in addition to protect the loan portfolio from decaying).

During the recent years the economy, the business world and the government have been experiencing tremendous change that is impacting all common private and public business practices. Business are experiencing a “ Global Financial Crisis” on which are not only the local or national markets but also the global markets are impacted on a negative and at times threaten the existence of powerful established corporations and organization. The new era is not a safe haven for no one anymore; including those who one time were described as solid financial enterprises. This environment has obligated the USA government on to attempt to rescue or become involve in the process to alleviate or provide some temporary solutions in a form of financial bail outs and economical stimulus package. This era started back on year 2007 and to continue to this very present day touching many economical areas such as Housing Industry, unemployment, investments securities, stock markets and others.

The U.S. government made a strict money related administrative framework in mid 1930, which functioned admirably till 1960's. John Marynard Keynes and Hyman Minsky supplanted it with effective money related business hypothesis and new traditional macro hypothesis which consequently brought about an insecure more tightly regulated, the monetary framework through deregulation pushed by the hypotheses of Keynes and Minsky. Case in point, the imperfect foundations and practices of the current money related administration, which is otherwise called the New Financial Architecture (NFA). The base of the NFA is an extremely frail hypothetical establishment. NFA is in view of business banks, lighters regulations like speculation banks and little. Cortty clarifies in his paper that the NFA's key structure is in view of evidently unfeasible suspicions and has no persuading truthful backing . Case in point, China couldn't get away from the effect of worldwide lull as it was inexorably reliant on fares, which consequently brought about closing down numerous assembling firms and made a genuine occupation challenge. New open doors could likewise open in China due to the emergency which may have the

Financial System is like the heart of the human beings, if it stops working then the person is dead in the same way that if the financial system stops working, then the economy would collapse. It is inherent in every society the law of supply and demand. There will always be those who have surplus resources and others will have deficit. Financial System is crucial to the allocation of these resources.

This report will analyze this Financial Crisis. Firstly, the reasons for which the banks failed will be discussed and the future of such failing banks will then be analyzed. This report will then examine how to avoid a similar crisis in the future and the current and future legal regulations of the banking system.

According to the specialists, there are many reasons for this global financial crisis. We try to focus some prime reasons behind this

The Global Financial Crisis of 2007-2008 has been studied by several economists, and different causes have been identified, both primary and secondary, which intensified the overall impact of the crisis. In my view, the Global Financial Crisis resulted due to a culmination of several policies that interplayed with each other, and significantly influenced all sectors of the economy, from consumers to the government. In this essay, I will be addressing the main underlying causes of the crisis, how they originated, the extent of their impact, and how they compare with other financial crises. I will conclude with an analysis of policies that have been undertaken, and initiatives which should be implemented to prevent future crises.

Around 2008, the global financial system was suffered a destructive crisis which especially destroyed the western financial world heavily. To prevent such crisis in the future, discussions and debates were being heated. Solutions and measures were proposed by many countries’ regulators. Factors that several reasons underlie the financial crisis have been widely blamed, for