Banking and Economic Environment

Subject: Independent research

Title: The impacts of economic environments on banking industry

The purpose of independent research report is to identify its environmental impacts toward banking industry. Meanwhile, this report provides the comprehensive overview of research relates to assessment and analysis of its background and government intervention, economic condition (inflation, recession), economic system, banking strategic, and external and internal economic influences

Why you choose this title

This research actually enhances my understanding how importance of economic environment in social life and also financial institutions such as Federal and commercial banks. It also give me the general ideals “how to survive and to deal with hostile economic environments ,if the collapse of allocation fund system”.

1.0 Introduction

The main purpose of this assignment is to identify the impacts of economic environments on banking industry. Economics environment is the collection of numerous markets interacts with government to deal with exhaustive individuals, businesses, and consumers sell and buy products and services at national and international stages.

R.Glenn Hubbard, Anthony Patrick O’Brien (2008) suggests that economic environments basically separated into two different entities such as Microeconomic and Macroeconomic. Economic models are used to analyze and clarify decision making in many domestic and international areas. Microeconomic is the study of how households and firms make their decisions, how they interact with markets, and how government influences their choices.

On the other hand, Macroeconomic includes the topics such as inflation, unemployment rates, and economic growth and also comprehends that policy issues made government interventions to regulate economy. There are five major Elements of Economic Environments which are EconomicLegislations, Economic Policies, Economic Conditions, Economic System and International Economic...