Credit Crunch Impact in Bank of England Essay examples

3. Using one specific multinational enterprise with which you are familiar, examine the ways in which ‘credit crunch’ has impacted its operations. Evaluate the strategic responses it has made, and might make going forward, to respond to the impacts of the credit crunch on its operations. Introduction; This work will focus on the broader economic impact of the crisis in credit markets, which began over three years ago with the downturn in United States (US) sub-prime housing market. While the epicenter has remained in the US, it has already had a major impact on the structure of Bank of England. In the year 2008 we have seen a significant consolidation within the UK banking sector. (George†¦show more content†¦Financial Stability The area seeks to detect risks to the structure and functioning of the UK financial system and to develop measures to strengthen regulatory systems and infrastructure at home and abroad to reduce those risks. This includes its statutory responsibilities for overseeing UK payments systems. In addition it undertakes work with HM Treasury and the FSA to improve the arrangements for managing a financial crisis. The area also contributes to the monetary policy process, and promotes public understanding of issues relating to financial stability through, for instance, the regular Financial Stability Report. Banking Services Customer Banking Division provides banking services to the Government and other customers, principally financial institutions and other central banks. This includes the provision of custody services, including for gold. Central services The Central Services Divisions encompass a range of support functions that underpin the Bank’s activities and help to ensure that the Bank’s reputation is maintained. These include IT, business continuity, the Governors’ private offices, and legal services.Show MoreRelatedConcepts of Microeconomics in a UK-Based Organization: Barclays Case Analysis2578 Words   |  10 Pagesï » ¿Impact of Credit Crunch on UK Northern Rock: The credit crunch can be basically described as the increasing costs of borrowing money due to prevailing situations and rising interest rates. The increase in the interest rates resulted in the inability of many people to afford the repayments on mortgages that led them to default. The rising interest rates had huge effects on the subprime market in the United States in which money was lent to probable risky debtors. Credit crunch was not only exacerbatedRead MoreThe Central Banks Of The World1135 Words   |  5 Pages The Central Banks of the world have a role in today’s society to provide stability to the economy. 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