Effectiveness of globalization in improving banking performance and their contribution to economic growth

Dissertation
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Contents
INTRODUCTION...........................................................................................................................1
Background of Research.............................................................................................................1
Research Aim..............................................................................................................................1
Research Objectives....................................................................................................................1
Research Questions.....................................................................................................................2
Rationale of Research.................................................................................................................2
LITERATURE REVIEW................................................................................................................3
Role of Globalisation in context to banking...............................................................................3
Factors affecting growth of HSBC Bank of United Kingdom....................................................4
Relationship between globalisation and economic growth.........................................................5
Ways through which HSBC Bank can improve their financial performance at global level.....5
RESEARCH METHODOLOGY.....................................................................................................7
Research Philosophy...................................................................................................................7
Research Approach.....................................................................................................................7
Research Strategy........................................................................................................................8
Research choices.........................................................................................................................8
Time horizons.............................................................................................................................9
Data collection............................................................................................................................9
Data analysis...............................................................................................................................9
Ethical consideration.................................................................................................................10
DATA ANALYSIS........................................................................................................................10
RECOMMENDATION.................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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TITLE: Effectiveness of globalization in improving banking performance and their
contribution to economic growth.
INTRODUCTION
Background of Research
The globalisation is used to explain growing interdependence of economies and culture of
world. It permits an organisation to search the minimum cost ways to develop the products. This
enhance the global competition that drives the cost down and develops more choices for the
customers. The minimum cost helps the people in developed and developing countries olive in a
better manner on minimum money. This is an ability to communicate and move in an easy
manner with the other to conduct the business at global level. The bank globalisation changes
shock transmission across the international market by the internal capital market of the bank and
foreign subsidiaries (Abor, 2019). HSBC holding plc is British multinational financial services
and investment bank. This bank has around 3900 offices in almost 65 countries and also
territories with 38 million customers. It is organised within the different business groups such as
Global private banking, commercial banking, retail banking and wealth management and the
global banking and markets. HSBC bank was imposed on balance sheet in all over the world
whereas it operating outside UK. HSBC is one of the biggest bank that has downgraded forecast
for economy of UK, predicting this to shrink through 10.3% in 2020 and grow 6% in year 2021.
Research Aim
The aim of present investigation is “To identify the effectiveness of globalization in
improving banking performance and their contribution to economic growth.” A study on HSBC
Bank, London UK.
Research Objectives
 To understand the role of Globalisation in context to banking.
 To explore the factors affecting growth of HSBC Bank of United Kingdom.
 To identify the relationship between globalisation and economic growth.
 To determine the ways through which HSBC Bank can improve their financial
performance at global level.
Research Questions
 What is the main role of Globalisation in context to banking?
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 What are the different factors affecting growth of HSBC Bank of United Kingdom?
 What is the relationship between globalisation and economic growth?
 What are the different ways through which HSBC Bank can improve their financial
performance at global level?
Rationale of Research
The present investigation is related to identify the effectiveness of globalization in
improving banking performance and their contribution to economic growth. In the banking
industry, globalisation is necessary as this brings the new technology that helps in improving the
banking services. (Asongu, Koomson and Tchamyou, 2017). The current research is mainly
conducted in personal and professional context. In the personal context, this helps to learner to
enhance the understanding about the globalisation in context to improving the baking
performance level in detailed manner. It is also conducted in professional context as this helps in
enhancing the skills and capabilities of a learner to do the investigation. It assists an investigator
conduct the similar kind of an investigation in the future and getting the positive outcomes.
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LITERATURE REVIEW
Literature review is explained as an account of what has been effectively published on
particular topic through accredited researchers and scholars. The main purpose of literature
review is to convey reader what the ideas and knowledge has been established on topic. The
literature review is based on the research objectives in which information collected by using
secondary sources such as books, journals, articles, internet sources and others (Sissy, Amidu
and Abor, 2017).
Role of Globalisation in context to banking
According to opinion of Kosmas Njanike (2021) Globalisation enable the large size
organisations to realise the economies of scale that minimized cost that turn the support of
economic development. It is process about enhanced interconnectness between different
countries. In the banking, globalisation is necessary as this brings the new technology that helps
in improve the banking services as well as infrastructure to minimize the fraudulent activities,
enhanced confidence and new risk management related techniques in banking sector. The
economic globalisation has been contributed to substantial rise in the living standards and also
falling the poverty over half century. Globalisation is worldwide drive towards globalised
economic system and dominated through the supranational business trade that are not effectively
accountable to democratic processes. The globalisation can be regarded as evolution that
restructuring the interactive means between different nations by breaking down the barriers is
communication (Auer, Borio and Filardo, 2017). In regards to this, globalisation of the financial
markets is process of unprecedented scale that has main consequences on the financial banking
management. The banks were among institutions mainly affected through the financial
globalisation. To deal with the changes in economic environment in specific financial
liberalisation and also the new technologies, banks forced to adopt the new strategies in the
banking management. Deregulation and enhancing sophistication regarding financial services,
products and the processes have enhanced complexity and diversity regarding financial risks.
Changes in the banking and financial markets have resulted in the changes in risk profile of the
firms and financial institutions. Main role of all these altercations in the financial stability and
economic development has made financial risk management more necessary. More competition
as result of baking globalisation has been led to enhance risk dimensions.
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Factors affecting growth of HSBC Bank of United Kingdom
As per opinion of Kyriaki Kosmidou and Fotios Pasiouras (2021) Banking sector acts as
provider of main part of the finance for commerce and trade. In this, banking has been more
informative intensive activity but in this present time banks are mainly differentiating the
services and products for better sustainability and development. The banking remains among
several domains that can own consumer for the life and also fulfil the aspiration and needs of
person. Banks can play better role than mere money keepers. They can provide suite of the
services to match life stage and lifestyle needs of people. HSBC is large size international
company and it operated in the different countries with the different policies, laws and
regulations (Ball, Junemann and Santori, 2017). Abiding through these laws mainly protects and
also enable the HSBC bank to operate in successful manner. HSBC have the protection strategies
against governmental limitations and restrictions. There are some factors given below which
impact on the HSBC bank:
Political factor- It plays an important role in identifying factors which can impact on long
term profitability of HSBC bank in certain market. This bank is operating in the banks in many
countries and also expose to various countries political environment. HSBC bank follow all the
rules and regulations while conducting its business operations. Abiding through laws protects
and enable it to be operate in successful way (Blundell-Wignall, Atkinson and Roulet, 2018).
Technological factor- In this, technological advancement impact way HSBC bank operate
on daily basis and how company shares its important information. HSBC bank is performing at
global level using advanced technology that can vulnerable to the cyber-attacks. It come under
the dire with some other financial institutions on how to protect the data of customers. Other than
this, HSBC provided the structured finance for the minimum carbon emission bus system in the
different cities in order to making the market leader in the climate technology financing (Borio,
2019).
Legal factors- In some of the countries, legal institutions are not the robust more in order
to protect intellectual property rights of company. It is necessary that company should examine
before entering the markets as this can lead to the theft of secret of company thus overall
competitive edge. There are many rules and regulations which linked to the HSBC banks. Major
complexity arises that they at minute face are the PPI claims they mainly mis- sold more
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