Banking Analysis: Porter's Five Forces SME Banking

“The government always wants to inflate the currency so companies have to charge more for their product” said Beattie (Andrew Beattie). The government also use interest rates to affect the stock market. Andrew Beattie also said, “Dropping interest rates as opposed to raising them encourage companies and individuals to borrow and buy more”(Andrew Beattie). This being done can lead to an outrageous amount of an individual's capital being terminated. This act that comes along and terminates capital is called a asset bubble.

Corporate Finance is a department dealing with various aspects of finance with the goal of maximizing the value of corporation while reducing the chances of risks. Companies do business and make money. Some companies make a lot of money and of course require someone to manage that money. Otherwise survival of company is not possible. That is the time when corporate finance comes into action.

(5 points) The activity by bank is called money creation because the central bank and the Fed both rely on banks to implement and enhance the effects. Even though the banks are not directly involved in money supply or money market policy conduction, it does work as a important money creation. 4. If a bank becomes worried about the future, it may decide to increase the level of excess reserves it holds in hopes of avoiding a trip to the Fed's discount

(5 points) The activity by bank is called money creation because the central bank and the Fed both rely on banks to implement and enhance the effects. Even though the banks are not directly involved in money supply or money market policy conduction, it does work as a important money creation. 4. If a bank becomes worried about the future, it may decide to increase the level of excess reserves it holds in hopes of avoiding a trip to the Fed's discount

Banks boosted the economy by making loans to people such as manufacturers and increased the monetary supply. Banknotes were used as loans, and became the currency for transactions. Federal and state governments didn’t use paper money, which lead to a dependency on banknotes. However, that also meant that there were counterfeits and people taking advantages over others. Banks would therefore decide on who to have loans, as well as discount rates, leading to a large increase of power that banks would have.

Organization may charge more money to customers for their products and services. If government imposes low taxes, firms want to invest for many sectors which create job for people. Central bank controlled the monetary policy. Monetary policy has effect not only on the business organization but also the entire economy. It is the ability to obtain credit.

The economic factor depends on outside control of the business, but it can affect the performance and marketing of the organisation. The main factors which mainly influence the economic balance of an organisation are political, economic, social technological, environmental and legislative factors. On an international front economic aspect is an essential interference in the performance of Tesco. Apart from the political stability of the region, factors also involve acts of legislation and tax rates. It is a major point of concern for the organisation, therefore it is essential to be aware of the changes in the policies.

to regulate and make the standards of bank control operations more realistic, increasing the banks financial positions has increased the interest of banks boards of directors and made appropriate financial decisions , banks capital more effective in the control , because of the agreed style of components and elements of financial institutions , everyone has the ability to create a quick idea . criteria for obtaining a safety degree are applied to reduce risk , disadvantages , not to control , bring workers animate experience weak , the presence of tension and conflict because of participating with others , lack of production due to differences vision in teamwork , as for the disadvantages first than , The balance between risk and return leads to an increase in the price of securities and reduces the cost of capital . second , Leads to greater variation in the distribution of incomes and wealth. third , The emergence of continuous economic fluctuations . fourth , Use the exorbitant money to advertise and advertise in order to promote goods and they actually do not express the truth .

In other words, I feel that my life would be miserable because every day I would have to think about how I am going to pay back the bank. The debt should not be easy to pay back, but at the same time the debt should not control the way you live. When taking out a loan, I should consider how the debt is going to affect me in the future. In conclusion, I now realize the importance building up one’s credit score. If I continue to have great credit, I will have more financial options that could help me in the future.

This clearly reflects the vulnerability of the Singapore economy which is highly dependent on trade, to external conditions and global economic shocks. Due to Singapore’s well regulated market, the exposure of Singapore banks to subprime mortgage is limited. However the recession in is mainly caused by the fall of the non-oil exports in manufactured goods, which was greatly affected by the overall deteriorating economic conditions in U.S. and Europe. The Singaporean government also set aside US$406.2 million (S$600 million) for training and development of workers to improve its human capital. This had a strong impact on future reemployment and retention of productive workers in the labour market.