Over the past century, there have been dramatic changes in the financial sector, So these changes are having a serious effect in the world and has been affected by one of the most major financial and economic crisis in recent history these not only raised the instability of the financial markets but also stopped their normal function as tools to allocate economic resources efficiently and effectiveness throughout the real economy (Kapoor,2010) , While a variety of definitions of the term financial crisis have been suggested, this essay will use the definition by (Bordo, 2001) who define it as” a period of financial stress resulting in the erosion of most or all of aggregate banking system capital” in order that this essay will Examine the
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because the uncertainty about the valuation of assets in bank balance sheets which led to continued uncertainty about their financial positions. As a result, they remained reluctant to lend to each other on the inter-bank market. This reluctance is evident in the interest rates charged on inter-bank lending, which rose even though the Bank of England 's base rate had fallen” (Kellaway,2009) Accordingly, United Kingdom government was proposed a solution to deal with the financial crisis which is a government intervention in the financial sector ,Knowing that solution was the only proposal to keep and maintaining economic stability. While The estimated cost of the intervention was about £1.5 trillion …show more content…
They nominated as the first bank set up computers in branches additionally they use cash machines. also, they were the first bank to use plastic bank cards but The financial crisis influenced Barclays, as it did the other major UK banks but in contrast to other major UK banks, Barclays went to private finance to deal with the financial crisis without any recourse from UK Government funds(Lui,2014) Instead it elevated to a significant amount of its capital requirement from sovereign wealth funds (House of Commons,2009). it announced that” The Qatar Investment Authority, which is already a substantial investor in Barclays, is investing a further £2bn in the aggregate, and Challenger, representing the interests of the Chairman of Qatar Holding and his family, is investing a further £0.3bn. In addition, His Highness Sheikh Mansour Bin Zayed Al Nahyan, a member of the royal family of Abu Dhabi, and Chairman of Abu Dhabi’s International Petroleum Investment Company is investing a total of £3.5bn”(Varley,2008) By increasing its capital from different place , Barclays set aside to coming into partial Government ownership and was aside accusations that the deal Barclays had deal with the Sovereign Wealth Funds would impact on its capability to access Government back up in the future(House of Commons,2009) and another
because the uncertainty about the valuation of assets in bank balance sheets which led to continued uncertainty about their financial positions. As a result, they remained reluctant to lend to each other on the inter-bank market. This reluctance is evident in the interest rates charged on inter-bank lending, which rose even though the Bank of England 's base rate had fallen” (Kellaway,2009) Accordingly, United Kingdom government was proposed a solution to deal with the financial crisis which is a government intervention in the financial sector ,Knowing that solution was the only proposal to keep and maintaining economic stability. While The estimated cost of the intervention was about £1.5 trillion …show more content…
They nominated as the first bank set up computers in branches additionally they use cash machines. also, they were the first bank to use plastic bank cards but The financial crisis influenced Barclays, as it did the other major UK banks but in contrast to other major UK banks, Barclays went to private finance to deal with the financial crisis without any recourse from UK Government funds(Lui,2014) Instead it elevated to a significant amount of its capital requirement from sovereign wealth funds (House of Commons,2009). it announced that” The Qatar Investment Authority, which is already a substantial investor in Barclays, is investing a further £2bn in the aggregate, and Challenger, representing the interests of the Chairman of Qatar Holding and his family, is investing a further £0.3bn. In addition, His Highness Sheikh Mansour Bin Zayed Al Nahyan, a member of the royal family of Abu Dhabi, and Chairman of Abu Dhabi’s International Petroleum Investment Company is investing a total of £3.5bn”(Varley,2008) By increasing its capital from different place , Barclays set aside to coming into partial Government ownership and was aside accusations that the deal Barclays had deal with the Sovereign Wealth Funds would impact on its capability to access Government back up in the future(House of Commons,2009) and another