Does The UK Economy Have A Profound Impact On The UK Banking Industry? (2014)
The UK Economy and UK Banking Industry Dissertation – The banking sector in the United Kingdom is unique in its size, breadth and diversity. The UK, and not just London, is home to a large domestic banking industry and a large international industry. The domestic sector is predominantly centred on personal and corporate lending, whereas the international sector helps to enable the functioning of global capital markets and provides investment management services from the UK to corporations, governments and individuals around the world.
A strong, healthy and well regulated banking sector is vital to support domestic economic growth through lending and the productive investment of savings. While the political debate has at times focused on the need to decrease the dependence of the financial services sector on the UK economy. This dissertation attempts to examine the effect of economic parameters and its relationship with bank performance in the United Kingdom.
The ordinary linear correlation used to regress the dependent variables, the adjusted correlation of determination (R square) was used to judge the explanatory variables. The research question was broken down into five sub hypothesis which looked deeply into evaluating the impact of economy on CAMEL ratios of each bank. The GDP growth rate, inflation and interest rates were considered as independent variables while capital adequacy ratio, asset quality ratio, profit per employee, net interest margin and liquidity ratio were dependent variables.
The findings revealed that the UK economy has profound impact upon the activities of British banks. Hence, the study established that the banking sector has been profoundly impacted by the economy of the Britain. Dissertation objectives:
- To analyse and compare the performance of four main banks in UK as a proxy for entire banking sector
- To critically evaluate the factors that impact the performance of banks in the United Kingdom
- 20,000 words – 86 pages in length
- Excellent use of literature
- Statistical analysis deployed
- Well written throughout
- Ideal for MBA and finance students
1: Introduction
Background and Gap
2 Rationale
Dissertation Aims and Objectives
Research Hypothesis
2: Literature Review
The UK Economy
Review of Relevant Literature on Bank Performance
Conceptual Framework
Bank Performance Indicators
Capital Adequacy
Asset Quality
Management Efficiency
Earnings Ratio (Net Interest Margin)
Liquidity Management
Economy Specific Factor Variables
Macroeconomic Factors Influencing Banks In The UK
3: Research Methodology
Data Collection Method
Primary Data
Secondary Data
The Research Strategy
Research Design
Sample Design
The Quantitative Research
Data Analysis
Ethical Issues
Data Quality, Validity and Reliability
Limitations of the Research
4: Data Analysis
Analysis of Barclays Bank Plc
Analysis of HSBC
Analysis of Lloyds Bank
Analysis of Standard Chartered
Performance Comparison Of Banks
5: Conclusion
Research Question Answered
Limitations and Future Research
References
Appendix
Barclays Ratio Analysis
HSBC Ratio Analysis
Lloyds Ratio Analysis
Standard Chartered Ratio Analysis
