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Case Study: Commonwealth Bank of Australia

   

Added on  2020-10-22

13 Pages4214 Words59 Views
RESEARCH PROJECT

TABLE OF CONTENTSTopic: To assess influence of Australian banking sector on economic growth- A study onCommonwealth bank of Australia..........................................................................................1INTRODUCTION...........................................................................................................................1Background of study...............................................................................................................1PROJECT OBJECTIVE..................................................................................................................2Aims and Objective................................................................................................................2PROJECT SCOPE...........................................................................................................................3LITERATURE REVIEW................................................................................................................3Role of financial system (banks) on economy.......................................................................3Impact of fluctuations in exchange rate on banking sector....................................................4Impact of interest rate on banking sector...............................................................................6Role of reserve bank monetary policy on economic growth..................................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

Topic: To assess influence of Australian banking sector on economic growth- A study onCommonwealth bank of AustraliaINTRODUCTIONBanking is referred as financial institution which is engaged in lending and borrowingmoney. The present report will briefly discuss about Australian banking sector and how it isinfluencing economic growth with reference to Commonwealth bank of Australia. In the sameseries, it will be stating project objectives, scope and literature review with appropriateconclusion.Background of studyBanking in Australia is highly dominated through four major banks such as Westpacbanking corporation, Commonwealth Bank of Australia, national Australia bank and NewZealand banking group. These banks have AA ratings where trade finance liquidity is issue inrest of the world. The banking system in Australia is highly transparent and reliable as itsoperational and structural differences through American system (Banking in Australia, 2019). Onhistoric basis, Australian banks have not operated with reference to restrictions which limited USbank operation in 1933. The Australian banking system has undergone with progressivederegulation along with privatization as well. In this aspect, foreign banks are allowed forentering financial market and retail banks give wide range of financial services like general andlife insurance, security underwriting and stock brokering to its retail consumers for creatingconsumer and corporate loans as it forms competition through merchant banks and brokeragehouses.1

Illustration 1: Economic contribution by industry(Source: Australian Economy, 2019)The Australian economy is referred as a modern services on basis of developed economyas service sector which will contribute about 3 quarters of GDP. With this context, finance andinsurance industry is referred as largest of service industry with reference to economiccontribution which is bigger than health and double of education. However, banking has verycrucial role in success of economy via core value creating functions where system hasrequirement of balancing three competing objectives (Australia why – Austrade, 2019). Commonwealth bank of Australia is an Australian multinational bank with its businessacross Asia, New Zealand, United Kingdom and United States. This gives variety of financialservices which includes institutional banking, superannuation, retail business, fund management,investment, insurance along with broking services. This bank is the largest Australian listedcompany on Australian Securities exchange. The usual role of banks is to give financial servicesto business as public and ensures economic along with social stability and sustainable growth ofeconomy. It plays significant role in economy whereas banks gathers savings of individual andlend them to business, manufacturers and people (CommBank, 2019). Henceforth, banks playscrucial role for capital formation in country which helps in attaining growth process.PROJECT OBJECTIVEAims and ObjectiveAim:To assess influence of Australian banking sector on economic growth- A study onCommonwealth bank of Australia2

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