Impact of the Problems Affecting Banking Industry Assignment

Added on - 21 Feb 2021

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Economics
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Background of the industry..........................................................................................................1Market structure which may characterises the industry...............................................................1Summary of its associated issues.................................................................................................2Analysis of the impact of the issue..............................................................................................3CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONEconomics for business can be defined as the field which is analysed by organisations forthe purpose of determine impact of the issues which are taking place within the industry. Mainpurpose behind the analysis is to form strategic decisions so that formed plan could beimplemented appropriately(Barnett, Ziegler and Byleen, 2015). The sector which is selected forthis report is banking. This assignment covers various topics such as background of industry,market structure that characterise it and summary of associated issues with it. Along with this,impact of the problems affecting banking industry are also covered under this assignment.MAIN BODYBackground of the industryBanking sector is the part of an economy which holds different types of financial assetsfor others. Different activities are performed by this sector of Australia which includes managingmonetary resources, helping companies to run their business properly by providing them loans. Itplays very important role in the functioning of the country because all the inflows and outflowsof finance are controlled and monitored by it. It is contributing a large amount in the nationalincome of the country which helps to grow the economy. It is a part of service industry which isalso known as tertiary sector because it is involved in keeping track record of monetaryresources. There are various types of functions which are performed by it. These are acceptingdeposits from individuals and institutions, allowing credits, loans, providing facilities of billdiscounting and overdraft etc. In year 2018 it has contributed around 140 billion Dollars in GDPof Australia and it also provide employment opportunities around 450000 individuals(Contribution of banking sector in GDP,2019).Market structure which may characterises the industryMarket structure can be defined as characteristics of a market in which differentindustries are operating their activities. All the features are focused by organisations to determinelevel of competition and price fluctuation within the marketplace. There are various types of itsuch as perfect competition, imperfect competition, oligopoly and monopoly. All of themcharacterises the industries which are related to them (Brickley, Smith and Zimmerman, 2015).The situation in which there are numerous number of buyers and sellers within themarketplace and the aspects related to monopoly are absent then it is known as perfect1
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