Coursework 1
The financial sector is a very important part of many economies, particularly the banking sector; which is the section of the economy that holds financial assets. ‘Over the past 40 years the size of the UK banking system has grown dramatically and under plausible assumptions it could continue to grow rapidly.’ The United Kingdom’s banking industry has been very successful and is seen as one of the largest in the world. However, there has been a dip within the financial sector due to the 2008 credit crunch, having a huge effect on the banking sector and their credit conditions. Credit conditions have changed a lot which has been a main affect for the recovery of the UK financial sector from the time of the crisis. The banking industry …show more content…
It was extremely difficult to secure a loan from a bank after the crisis, however it is becoming easier since then. Financial markets are vital in economic terms; enabling funds to move from those with excess cash, savers to those in need of cash, investors or borrowers. This helps to promote economic efficiency. These markets can have an effect upon the wealth of individuals, the behaviour of businesses and the economy generally. Well-functioning financial markets are seen as important aspects in producing and maintaining high economic growth. Banks as well as lending are both seen as the lifeblood of an economy. In order for the UK to increase economic growth we need both to improve as they lean towards moving funds from inefficient to efficient …show more content…
Buy-to-let is where a property is purchased by someone in order to rent or let out. This rise of secured lending could be influenced by a rise in the ability of gaining secured credit. There has been a significant amount of competition within the mortgage market for owner-occupier. This has led to a rise of higher loan to value (LTV) lending availability in the UK. Loan-to-value lending is used by lenders to express the proportion of an advance to the value of an advance purchased. There has been a predictable with an expansion in credit supply, for spreads on most home loans falling in
The financial sector is a very important part of many economies, particularly the banking sector; which is the section of the economy that holds financial assets. ‘Over the past 40 years the size of the UK banking system has grown dramatically and under plausible assumptions it could continue to grow rapidly.’ The United Kingdom’s banking industry has been very successful and is seen as one of the largest in the world. However, there has been a dip within the financial sector due to the 2008 credit crunch, having a huge effect on the banking sector and their credit conditions. Credit conditions have changed a lot which has been a main affect for the recovery of the UK financial sector from the time of the crisis. The banking industry …show more content…
It was extremely difficult to secure a loan from a bank after the crisis, however it is becoming easier since then. Financial markets are vital in economic terms; enabling funds to move from those with excess cash, savers to those in need of cash, investors or borrowers. This helps to promote economic efficiency. These markets can have an effect upon the wealth of individuals, the behaviour of businesses and the economy generally. Well-functioning financial markets are seen as important aspects in producing and maintaining high economic growth. Banks as well as lending are both seen as the lifeblood of an economy. In order for the UK to increase economic growth we need both to improve as they lean towards moving funds from inefficient to efficient …show more content…
Buy-to-let is where a property is purchased by someone in order to rent or let out. This rise of secured lending could be influenced by a rise in the ability of gaining secured credit. There has been a significant amount of competition within the mortgage market for owner-occupier. This has led to a rise of higher loan to value (LTV) lending availability in the UK. Loan-to-value lending is used by lenders to express the proportion of an advance to the value of an advance purchased. There has been a predictable with an expansion in credit supply, for spreads on most home loans falling in