Role of Banking Industry for the Present Worldwide Economic Crisis

 

Role of Banking Industry for the Present Worldwide Economic Crisis

There has been a worldwide economic crisis currently due to a number of factors. Various entities have contributed to the economic crises in one way or another. The global economic crises originated from the United States and therefore most of the causes could have been from the United States institutions (Boyes 112). In this regard the banking sector has been pined out as an institution that has played critical role in the economic crises. The competition in the sector for instance has been outlined as a possible cause for these crises. This paper seeks to outline the possible roles that the banking industry as institution has played in the world wide economic crises. The paper explores the extent of the role the banking industry played in the worldwide economic crisis. The paper also addresses the responsibility of the U.S. Federal Reserve responsible for the current financial crises. Sound solutions for the present financial crises are presented in the paper in a bid to avert possible repeat of the financial crises in future.

The worldwide economic crisis is blamed largely on the highly competitive field of the banking industry (Nier 89). The competition is taken as the single most factors the lead to the crisis due to the fact that banks were using credit extension to their customers as a way of customer attraction. The credit extension by banks was as a result of the liberalization of the bank market hence individual banks used this as a means of attracting more clients in disregard of the financial consequences this would have to the economy of respective states (Nier 94).

……………………………………………………………………………………………………………..

Place an order with us to get a customized paper similar to this or any related topic. NB: The assignment will be done from scratch and it
will be 100% original.

Posted in Uncategorized

Leave a Reply