Global Financial Crisis and the Banking Systems in Australia, Canada and United States What common features of the banking systems of Australia and Canada might be behind the relative 'good' performance of both of these country's banks through the global financial crisis (GFC)? How do both of these systems differ, in structure and regulation, from the banking system of the United States? What are the main differences with respect to the ways mortgage lending is conducted in these three countries? Common features between Canada and Australia banking systems The global financial crisis had a little effect on both Australia and Canada because of the strategies they had put in place. These common strategies mainly focused on reducing the vulnerabilities of the banks from the effect of the highly indebted households (Kyoon & Sheridan 2012, p
For instance, in the two former countries, there was the creation of a larger financial institution as compared to the fragmented nature of the banks present in the U.S. (Bordo et al
subsidiary' question with respect to the operation of foreign banks in emerging markets been resolved by the GFC? Why? Yes. Some of the central banks owning the foreign banks may be having more shares than the others, and there is always no major difference amid the affiliates and the subsidiary during the financial crisis (Mihaljek, 2011, p
This leads to the scenario of stress test in these countries, which shows that these larger banks were facing challenges during the financial crisis. Generally, the Basel III always put more pressure on the high leveraged institution in relation to the market funding (Davis, 2011, p
The Hong Kong Monetary Authority had stated at that time that it was "prepared to provide capital to the territory's 23 locally incorporated banks, following the example of the United States and Britain." (Bradsher
Hong Kong was one of just a few countries in the region to escape relatively unscathed, successfully avoiding a banking crisis although, of course, some damage was inflicted on the banks." (Hall, Kenjegalieva and Simper, 2008) Hall, Kenjegalieva and Simper (2008) additionally report that there was indirect damage inflicted on the real economy by the AFC a banking crisis was still avoided
AFTER FINANCIAL CRISIS It is reported in the work of Daniel Po-min Chan (2008) in the work entitled: "Hong Kong Faces Sub-prime Contagion" published in the Hong Kong Journal that despite the resilience of the Hong Kong economic outlook, that the story is quite different in the property and stock markets in that the "outbreak of the subprime crisis increased the possibility of having negative real interest rates." (Chan, 2008) the Hong Kong currency is stated to be "pegged to the U
We also seem to have achieved a good balance in the relationship between the supervisor and the banking system. "(Yam, 2009) Yam relates that a primary example of "how that balance has contributed to banking stability is the 70% loan-to-value policy for residential mortgage lending by banks
This is no crisis of Capitalism, just a fork in the road that is waiting for government intervention to right it. Polanyi's thoughts may be exciting for some for it calls for the end of laissez faire ideas and asks for the government to intervene as it did in the past (Halperin, 1944)
Financial Crisis in Peripheral Europe Nations on the edge of the eurozone, including some former economic darlings like Ireland, have recently come under intense pressure due to their high debt loads. Germany has been forced to bail out an insolvent Greece in order to maintain stability within the eurozone (Kulish, 2010)
The surface-level cause of the trouble was the level of debt. In Greece, the budget deficit was at 13% of GDP in late 2009 and public debt at 125% (Walberg, 2010)
As a result, Spain saw an increase in inflation. When the real estate bubble burst, Spain was overpriced, which saw capital outflows, leaving the nation with high debt and low income (Krugman, 2010)
This is caused by a number of factors, but a major one is the underlying differences in competitiveness between different member states. A solution, therefore, would be a tighter political union -- a common budget, common governance, common taxes -- in order to redistribute resources in a non-crisis situation (Fleming & Shipman, 2010)
In order to be effective, this process requires investors willing to purchase the resulting securities." (Douglas, 2009 P2)
Unlike past financial crisis such as 1999 Brazilian crisis, 1997 Asian crisis, and 1998 Russian financial crisis, the current global financial is the most influential of all financial crisis because it triggers prolonged worldwide fear and spillover and correlation among international financial markets in both developed and emerging markets. (Cheung, Fung, and Tsai 2010)
mortgage markets leading to the significant turbulence and uncertainty in the global capital markets. (Kalinowski, Marcin 2011)
government responded to the financial shocks by implementing bail out policy. (Merrouche and Nier 2010)
Such practices might include eliminating over-time and working time for the employees; hence, equity. Other strategies recommendable for the company include acquiring or opening subsidiaries with low cost and transferring organizational production to these subsidiaries and market segmentation to identify new markets for operation (Baum & Lampel, 2010)
Performance analysis of the Qantas Airlines shows that the Global Financial Crisis increased costs of management of operations within the organization. The increase in the cost is highly attributable to the increasing price of oil, constantly changing legislation in the target markets, and decreasing costs of utilizing the services provided by the airline companies (Berlatsky, 2010)
Moreover, it has affected the performance of the Qantas Airlines by freezing the recruitment and adoption of cost-cutting measures to reduce costs incurred by the company and laying off employees. Another way in which the Global Financial Crisis (GFC) has affected the performance of the Qantas Airlines include reduction in the global competitiveness, the shift of operations to short haul routes, and the introduction of smaller jets to replace the larger jets operating long routes (Glaesser, 2006)