Why The Luxembourgish Economy Is Too Dependent On The Financial Services Industry

In this case study, Vancity’s CEO, Vrooman, is faced with making the tough decision of deciding if her organization is in a position to reprice its line of credit offerings, in order to stay afloat and competitive, and at the same time, not loose the trust of its customers, who also happens to be the owners. Furthermore, the study showcases how Vancity’s innovative value to adapt to the changing needs in their community gives them a competitive advantage amongst other financial institution. This case is important as it explains tough decisions that top executives and organizations as a whole, are often faced with making, in order to stay competitive and profitable. It also discusses the financial impacts of the recession in the late 2000s on the Canadian economy, particularly the financial industry. This paper will begin with an introduction to this case, discussing the financial industry, and its impact on the Canadian economy, also to be accompanied with some background information on the case study. This will be followed with an analysis of the case study and I will then determine possible decisions that could be taken, and the merits/drawbacks of each decision. At this point, I will elaborate on what decision I think would be ideal and provide the best outcome of benefitting both the organization and its customers.

We see the banking industry as a good opportunity for investors because there will be a combination of changes that will affect the banking industry, including rising interest rates, a less zealous regulatory environment, tax cuts. Yet, the news is only one of the determinant factors, investigation of the entire industry is necessary before buying stocks. First, the threat of new entrants in the banking industry is medium because opening up a small bank working on the local level is feasible, but what makes it hard to survive is to earn consumers’ trusts. With less new entrants, the existing firms have more potential of earning profits. Since capital is the essential asset on any banks, the power of suppliers is moderate to high.

The overall development of an economy is a major factor that has significant impacts on the development of the economy's financial markets. Since well-functioning financial systems offer good and easily accessible information, they lower the costs of transaction. This in turn enhances resource allocation and strengthens economic growth. The financial services industry consists of various systems such as stock markets and banking systems that enhance growth and help in poverty reduction. However, commercial banks tend to dominate the financial system during low levels of economic development while stock markets become more active and effective during periods of high levels of economic development ("Financial Sector", n.d.). The other important systems in the financial services industry include sound macroeconomic policies, shareholder protection, and good legal systems.

The UK is becoming increasingly reliant on its financial services, demonstrated by the fact that in 2014 the UK’s financial services industry accounted for 8% of the gross value added to the economy. The success of the UK as a global financial centre is largely attributable to the reputation of its cross-border bank lending and the financial institutions in

While researching text written on the effects of global financial crisis 2008-2009 on Brazil?s economy, I found some financial analysts that had published documentations in reference to the impact on the Brazilian economy. These authors discussed in research papers, financial journals, newspapers, pamphlets, and brochures on how Brazil?s state and local-owned banks, international banks and its government and monetary policies reactions to the global financial crisis 2008-2009. My goals in this paper, is to examine the impacts of the global financial crisis on the Brazil?s economy, and measures taken by government regulatory and banking policies that led to mitigating the impact of the global financial crisis of 2008-2009.

The country that we have chosen for analysis is Switzerland. The economy of Switzerland is one of the world's most stable economies. Its policy of long-term monetary security and political stability has made Switzerland a safe haven for investors, creating an economy that is increasingly dependent on a steady tide of foreign investment. Switzerland has achieved one of the highest per capita incomes in the world with low unemployment rates and a low budget deficit. The service sector has also come to play a significant economic role. *Source: Wikipedia

This paper proposes a functional approach to designing and managing the financial systems of countries, regions, firms, households, and other entities.

The aim of this paper is to analyze the effect of the subprime crisis on the banking sector in Europe, with a close attention on the case of Spain. Spain is currently facing the worst crisis ever experienced in its financial history, so it would be interesting to analyze what is the real situation of the banking sector and what will be the reforms that could lead to a consolidation of the financial systems. The strengths

The conclusion that Woll reaches, that financial power is not simply a product of superior resources but more of a long term relationship between finance and the state is coherent with the idea that not only is the state influenced by finance, but also how finance needs the state (Datz

This work is a presentation of a short review of the current general economic situation in Europe, which includes a description of current trends, a description of the crisis in the economically strong countries in Europe.

The British economy as an important trade entity, economic power and financial center, is the world’s fifth-biggest economy, is one also the world’s most affluent, the most developed and one of the highest living standards in the world. It is important that British capital London is one of the world’s two big international financial centers, along with New York. This report will discuss the economic system in the UK, and evaluate its effectiveness. (Internations, 2016)

The financial industry is an essential element of society and the economy. They provide ways for people to plan for the future and multiple compensation services in various forms such as checks, electronic funds transfers, and credit and debit cards. Majority of individuals, businesses, and institutions need to protect themselves against a range of risks that could have a huge impact on their personal and business decisions. As a result, the recruitment sector recruits for the best talent to ensure various lines of businesses that enable the organization to grow and hire people, contributing to expansion of the economy and the company. These individuals must possess strong decision making skills to constantly think in many dimensions to thrive and be successful.

List of abbreviations List of tables Acknowledgements Abstract 1. 2. 3. 4. 5. 6. 7. 8. Introduction Problem statement Objectives and hypothesis of the study Literature review Structure and performance of the financial sector in

There is no consensus on how best to define financialization. Although the concept emerged within the Marxist tradition, there are conflicting views about the relationship between finance and the real economy. Baran and Sweezy (1966) explain that advanced capitalist states face a surplus absorption problem that inevitably leads to stagnation. To prevent the latter, unproductive consumption rises and the remaining surplus enters the sphere of circulation, particularly, financial activities. This is a stark contrast to Orthodox Marxists (cite), who explain the rise of finance as a consequence of the falling rate of profit in the sphere of production. The essential contention is that poor profitability in

Switzerland is considered as among the best expat nations in the world due to its very high standards of living and the fact that it has a multilingual and sophisticated population. This has seen many large multinational organizations and companies set up base in Switzerland in cities like Zurich. Due to this expansion strategies by large organizations willingly to expand all over the world, many regional banks find it necessary to open up offices in various countries such as Switzerland in order to offer financial services for such companies and businesses that have expanded globally. However, moving and setting up shop in Switzerland is not as easy as one may think as it can be quite difficult and stressful if the right procedure is not followed depending on various factors. According to Jordan (2012), recently, the earlier trend where banks would turn a profit despite the financial situation in Switzerland has disappeared. This assignment looks at issues that a regional bank may experience while moving and setting an office in Switzerland.