Impact of Economic and Global Business Environment on Virgin Money Bank

Individual Case Study

Table of Contents
INTRODUCTION......................................................................................................................3
The economic environment in which the bank operates........................................................3
Global business environment and its impact on the country..................................................4
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................8

INTRODUCTION
The environment in which the banking sector operates has influence of the external
environment. As based on the economic environment the decisions are made by the banks.
Based on the economic changes it has huge impact on the demand and supply of money in
the market. The rates are changed according to the influence of the market. Virgin Money
Bank provides banking and financial services (Virgin Money UK PLC, 2022). The future plan
of the bank is to digitalise all its services. And provide services to the unprivileged workers
and people. Through this report it can be examined that how the economic environment
effects the banking sectors. Examining the business environment and its impact on the
country. Analysing with the help of relevant theories and models. As the banking sector is
mainly affected with the countries economic conditions. Based on it the government take
decisions.
The economic environment in which the bank operates
The government plays a major role in the environment. As if the economy of the state
is strong then it indicates that the standard of living of the people is good. This increases the
growth of the country and the banking sector. The banks are affected by the economic
development of the country which is caused by the government which is elected by the
public. The economy is affected by the inflation, employment and the policy made by the
government.
The government follows different policies like the rate of inflation is not affected
majorly. As the prices are inflated slowly (Friedline, Chen and Morrow, 2021). Increase the
employment in the country so the economic development is increased. Apart from all these
objectives if the country have favourable balance then it can grow. It regulate the taxes and
rules and regulations which are to be strictly followed otherwise the country may suffer.
To control the economic environment government uses fiscal and monetary policy.
Due to this policies the government make the budget which includes all the spendings of the
government. Which is collected by taxes and borrowing funds. It can be either deficit or
surplus. The surplus fund is good for the economy as it can be used for further development
in the infrastructure of the country (Jemielity, 2018). With the help of monetary policy the
government control over the circulation of the money in the economy.
Based on the economy’s condition the government take major steps to control the
money circulation. On the basis of this it increases or decreases the interest rates. Even the