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Fundamental Analysis During Financial Crisis

1887 words - 8 pages

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

3/21/2014

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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 (Shareholder.anz.com, 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...

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