Bank Investment

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Bank Investment

Bank Investment



Bank Investment

Question 1

An Eastern European country is likely to accede to membership of the European Union In a few years' time, and will join the Euro zone group of countries a year later. As the banking analyst in an investment firm, you are asked to prepare an advisory note about the issues to be considered when assessing future returns from banking stocks in the country. Write the advisory note, listing and explaining the relevant issues.

Answer 1

This is a very important factor for any Eastern Europe country that will become the member of European Union. The case of Latvia will be highlighted as an example in order to explain the issues related to the preparation of advisory note. The country known as Latvia joined the European Union in order to share a common currency with other members in the union. The Prime Minister, Finance Minster and the Central Bank Governor also jointly signed the application. As a bank analyst, it is a vital economic decision for any country that was having currency crisis. Though, it is a truth that Latvia's economy suffered considerably because of the global financial crisis in 2008-10. The country also faced a negative impact of the low GDP growth in the entire EU domain. As a bank analyst, it is very important to identify threats related to the decline in the banking sector. Though, it is a right decision for any Eastern Europe country thinking to join European Union but these are also some of the issues that need considerable analysis. The analysis of the issues makes it easier for the firm to take appropriate decisions on important matters. It also provides an opportunity to the country to have complete information about the internal and external factors that carries immense value. Latvia needs ...
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