Banking industry risks, nightmares and their management

By



ACKNOWLEDGEMENT



I am very grateful to God who has given me the grace to start this course and end it successfully. I would like to thank my family, who worked really hard and stood by me all the way. God bless my family who gave me full support and encouraged me. I would like to thank my supervisor, for her patience and support. Finally to my friends and all who have made the completion of this project a success, thank you and God bless you.

DECLARATION

I declare that the work in this dissertation was carried out by me. The project is my own original work and has not been submitted elsewhere in fulfilment of the requirements of this or any other award.

SIGNED: ............................................................. DATE: ..........................

ABSTRACT

The major purpose of this dissertation was to examine the Banking risks, nightmares and their management. There was also a need to assess the various factors related to the Banking risks, nightmares and their management. It was important to see the relationship among various variables which were discussed in the study. There were 20 participants who were selected as a sample size for the study. An interview was conducted with the help of open ended questions provided to 20 respondents. The responses were generated with the help of interview questions where each one of them answered all the questions in detail. All the respondents were the employees working in various banks and they gave an answer based on the knowledge related to Banking risks, nightmares and their management. In the end, they provided a lot of important evidence which was very important in interpreting the overall results of the study. Therefore, these were the major issues related to research study that was discussed in detail.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1 Background of the topic1

1.2 The importance of the Banking Sector in Corporate world3

1.3 Statement of the Problem8

1.4 Research Questions9

1.5 Significance of the Study9

CHAPTER 2: LITERATURE REVIEW10

2.1 Overview of the Banking Risk10

2.2 Types of Risks in the Banking Sector12

2.3 The relationship of financial crisis with bank's risk20

2.4 The role of Agency Theory in Banking Risk25

2.5 The role of politics in the Banking Crisis27

CHAPTER 3: METHODOLOGY34

3.1 Overview of Research Methodology34

3.2 Qualitative and Quantitative Analysis35

3.3 Theoretical model36

3.4 Sample Size for the study36

3.5 Research Instrument37

3.6 Limitations of the Study37

3.7 Informed Consent37

3.8 Validity and Reliability38

3.9 Ethical Concerns for the Research39

CHAPTER 4: DISCUSSION AND ANALYSIS40

4.1 Overview of the Analysis40

4.2 Responses Generated from the Interview40

4.3 Results generated with the help of Quantitative Data48

4.4 Various factors related to Banking risks49

4.5 Overall Findings of the Study52

CHAPTER 5: CONCLUSION53

5.1 Summary of the topic53

5.2 Limitations of the Study54

5.3 Important points extracted from the Research Study54

5.4 Recommendations for the study59

REFERENCES60

APPENDIX67

CHAPTER 1: INTRODUCTION

1.1 Background of the topic

The occurrence of Financial Crisis of 2007-2009 led a major failure of many financial institutions which failed miserably because they had to undergo a bail out with taxpayer money. A major starting point is to conduct an examination of the risk management practices ...