Subprime Crisis

Executive summary The purpose of this report is to analyze the reasons for the sub-prime crisis, which has created global fiscal crisis (GFC), with a focus on Australia and their wedgeing outline. The impact of the sub-prime crisis caused swell passing to financial institution and some need to be bailed pop bulge by the US government and plot of land others need to commit for bankruptcy. However it is argued that financial institutions in Australia were unmistakably resilient during the GFC, a prevailing culture of prudent lending - no bailouts of Australian banks, the banks were highly capitalized with a stable documentation base and a culture of intermediation-not securitization. As a conclusion, the approaching implication for financial stability are identified as effective financial system regulation, complying with global capital sine qua non of Basel III and importantly the separation of commercial banking from social supporter policy which has been ho ld unlike the US. Introduction The financial crisis that emerged in the US mid(prenominal) 2007 has been widespread and profound. As the crisis evolved, Australian banking celestial vault of heaven withstood the turbulence and adjudge performed remarkably well. Although high profile non bank financial / investing companies experienced severe distress generate by the crisis the banking sector was generally unscathed contrary to the US and the UK which have been bailed out by taxpayers funds. This report identifies the remarkable efficacy and resilience of the Australian banking industry in comparison with its world-wide peers especially the US. It is an elicit comparative study of Australian banking system versus its international peers that may provide valuable clues to avoid a repeat of a similar crisis in the future. This report discusses in subsection 1 the Impact of the Sub-prime crisis on Australia and in section 2 the roles of the financial institutions o f Australia during the crisis and in section! 3 it provides more(prenominal) detail about the future...If you want to get a secure essay, order it on our website: BestEssayCheap.com

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