This website uses cookies to ensure you have the best experience. Learn more

Fundamental Analysis During Financial Crisis

1887 words - 8 pages

Was fundamental analysis redundant in the period during the Global Financial Crisis (GFC)?



Was fundamental analysis redundant in the period during the Global Financial Crisis (GFC)?
Fundamental analysis is the process of evaluating the value of any security and certificate by analyzing the real time factors, which are based on qualitative and quantitative factors. Economic and the social factors also effect while you are finding out the intrinsic value of any security or asset. Fundamental analysis when made for evaluating the value of security all the factors that can affect the security considered like macroeconomic factors, microeconomic factors and the company ...view middle of the document...

ANZ bank prefers the development of the technology and provides the support to the information and research (, 2013).

SOURCE: (Macke, 2013)

Source: (Wiseman, 2014)
During the recession in the world, the IMF tells the $600 billion US dollars figure by which the banks default at the starts. Where the insurance companies and the institutions those are providing the loans and services to the customers defaults than the trust of the client shake form them. The investment of the capital on the weak institutions and the banks leads them to Wright

ANZ highly efficiently performed in the crises is proving that the best bank to be invested. The profit efficiency of the ANZ bank is more than the cost of the scenario. The global reputation increases of the ANZ bank because of the great survival. A good competitive position they maintained in the market and the domestic reputation also increased in the market of ANZ bank.
During the recession in Australia, the government makes little regulation for the banks and through their enforcement, the ANZ bank made some principles like free of cost deposited for those are depositing small amount and the big charges for those who have made the high charges. In addition, for the purpose of debts the bank wants from clients to assure the instrument against it. The government of Australia because of the global crises do no0t end up the capital market and provide the new ways to the banks. In addition, this was the reason of the bank to raise the loans by its own in the coming situation. (Bedford, 2008)

Source: (Strydom, 2013)
All the banks of Australia made profit in this period was the 20% decrease of the average from 2007-2010. The inefficiency in the profitability of the ANZ bank is come from the side of cost not from the side of revenue. The utilization of the assets must be restructured by the bank while making the decision on the inputs of the organization because these factors are affecting the profitability of the bank from the cost side. The main objective of the business of ANZ bank is profitability maximization instead of cost increment.

Source (Investor, 2013)
During the time of the recession, the value, which is decreased of the ANZ bank because of defaults of the people, was raise up again later in the 2009 (Vu and Turnell, 2011). They focus of the ANZ bank was on the factors which relates to its profit and cost:
* Capitalization of bank
* Profitability
* Deposits of the bank
* Noninterest expenses
The management is making sure that the interest free expenses are properly managed or not and the amount of capitalization of the bank is meeting the requirement of the adequacy level of capitalization of ANZ bank.

Source: (Strydom, 2013)
In the recent scenario, the ANZ bank is growing in the economy for the benefit of the Australian society. The growth of the ANZ bank is based on the operations of the Asia. The bank is trying to offset the scenario...

Other Papers Like Fundamental Analysis During Financial Crisis

Debt Crisis Essay

2404 words - 10 pages fundamental in varying ways over a given period. Despite the fact that the market participants may not have put into consideration the cross-country differences or the notable changes in the fundamental of each specific country over a given period, they tend to respond more aggressively during the time of financial markets crisis. The article has referred to this phenomenon to be a wake-up call contagion since there is an indication that for some

How the American Mortgage Crisis Spread to Europe

1727 words - 7 pages wrong, and the fact that banks could lend out many times their equity capital and reserves, made them unprepared when the crisis happened (The Norwegian Ministry of Finance, 2011). The liberalization of the financial markets has induced risk-taking and made the international market more exposed to economic volatility. According to Kamin and DeMarco (2010, p.24) “…the U.S. housing slump, far from being a fundamental cause of the global crisis

The Pros and Cons of Regulating Corporate Reporting: a Critical Review of the Arguments

2513 words - 11 pages adequacy requirements. A second channel potentially operates through the market discipline of banks’ risk taking by outside investors. The issue here is that the increase in politically driven discretion granted to financial institutions during the crisis may have weakened market disciplinary forces by reducing bank transparency, making it more difficult for outside investors to assess the underlying risk of banks. In addition, recent proposals by

Reflective Paper

650 words - 3 pages Linda Anderson Professor James Carvel Organizational Behavior (GSB-600) 30 December 2014 Reflection Paper 2 Perception, Attribution, and Learning Chapter 4 Concrete Experience In 2007, the US economy entered a mortgage crisis that resulted in panic and financial turmoil around the world. Many homeowners lost their home and investments. amiliarity ARMs (Pritchard) let’s review the Perception, Attribution, and Learning (Schermerhorn

The Causes And Consequences Of The Russian Crisis Of 1998

2311 words - 10 pages The causes and consequences of the Russian crisis of 1998 The period 1995 to mid-1997 was boom time for Russia’s financial markets. The value of the Russian bonds and stocks soared, with the participation of foreigners in these asset markets increasing rapidly. International investors’ optimism about the country’s future was lifted by stabilization policy that followed the advice of Western institutions. Russian crisis of 1998 were caused

Case Studies

522 words - 3 pages Financial markets development and bank risk: Experience from Thailand during 1990–2012 1. Introduction a) Origion of concept: The longitudinal study aims to understand the impact of the evolution of financial markets development bank behavior. The focus on Thailand during the period 1990–2012 b) Theoritical background: captures the events surroundingthe Asian financial crisis of 1997–19982and the global financial crisis of 2007–2009. c

Financial Crisis Problem: IS The Government Bailout Right? It Is An Essay About The Financial Crisis In 2008, In My Economy Class

1630 words - 7 pages increased by 2%, business investment jumping 7.5%, and exports up 3.9%. (Nicholas, 2008)Since the financial crisis is more and more serious, the unemployment rate is increasing, which also increased the violation of credit system. According to the report in New York Times, the credit card providers have cancelled 21 billion bad loans in the first half year. And the analysis indicates that the lost in the next one and a half year, the credit industry

Global Crisis

1290 words - 6 pages industrialized economies may have reached bottom and are beginning to recover, for the most part, unemployment is still rising. Numerous small banks and households still face issues in restoring their balance sheets, and unemployment has combined with mortgage loans to keep home foreclosures at a high rate. The crisis has exposed fundamental weaknesses in financial systems worldwide, demonstrated how interconnected and interdependent economies are

Crisis Communication and the Case Study of Missing Malaysia Airlines Flight Mh370

2521 words - 11 pages company must determine clearly what they can do and what they cannot do in making the crisis responses. 3 lessons given by the researchers here is to be quick, consistent and open. The purposes of all lessons are to create the perception that the organization is in control of the crisis situation, restore the stakeholders’ confidence and minimize the legal exposure or financial loss. By using the SCCT as a theoretical framework for categorizing

Financial Economics

2283 words - 10 pages 1.Introduction This essay is based on the financial crisis from 2007 to 2008, which discuss whether the time at that moment is different. Here, we focus on the financial crisis happened in USA around these two particular years, therefore we mainly talk about ‘U.S Sub-prime Crisis’. Section I is to summarize the ideas that Reinhart and Rogoff provide according the book ‘This Time is Different: Eight Centuries of Financial Folly’ (2011) and

Co Movement Of Global Indices

2889 words - 12 pages funds. The six groups of institutions managed almost 45% of total global financial assets in 2007. Because of this, during the time of the crisis the capital flow across the global economy reduced significantly and overseas investments virtually dried up. One of the major implications of co movement of global stock markets is the validity of international diversification. International portfolio diversification is considered as an effective

Related Essays

South Africa’s Macroeconomic Performance Before, During And After The Global Financial Crisis Of 2007 2008

1045 words - 5 pages had significant exposure to CDOs, which became known as toxic debt instruments in the wake of the financial crisis, the impact was experienced more speedily and more severely. South Africa had very limited exposure to these debt instruments, so the impact on their economy lagged other economies such as the USA. a) South Africa’s macroeconomic performance before, during and after the global financial crisis of 2007-2008 As indicated by the

Learn From Employment Policies During The Global Financial Crisis In Oecd Countries

1295 words - 6 pages Essay Learn from employment policies during the global financial crisis in OECD countries Writing by Arthur DAGAN a. What has been the main impact of the global financial crisis on OECD countries? Why should governments be concerned about the impact, especially in the context of youth? Let us first understand the cause of global financial crisis, his main impact on OECD and then why governments should be concerned about the especially

Financial Crisis Essay

4509 words - 19 pages responses and lessons , London, 23 April 2009. The ongoing global financial crisis can be largely attributed to extended periods of excessively loose monetary policy over the period 2002-04. Very low interest rates during this period encouraged an aggressive search for yield and a substantial compression of risk-premia globally. Abundant liquidity in the advanced economies generated by the loose monetary policy found its way in the form of large

Impact Of Global Financial Crisis On Pakistan

5046 words - 21 pages Impacts: Every problem that enters the society has its social costs that the country has to bear. Pakistan where poverty and unemployment is much already, financial crisis increases the situation. Poverty and unemployment: Food prices have a large bearing on poverty rate. A review of price trends of essential items during 2007-08 indicates that the prices of daily life such as wheat, flour, rice, edible, oil, vegetables and pulses. Since