Introduction
This research report examine the impact of global financial crisis with respect to corporate governance & legal process in one of the organisation in Australia. This research helps to analyse different issue involved in global financial crisis and based on them some recommendations which will contribute to higher management for making long term plans and strategies. For this research report I have taken one of the reputed bank of Australia, The Australia and New Zealand Banking Group Limited.
About Business
The Australia and New Zealand Banking Group Limited, usually well known as ANZ, is ranked in top three Banks in Australia. The largest part of business of ANZ comes from operation in Australia. ANZ business is dominating in commercial and retail banking. As having major operation in Australia & New Zealand, ANZ operates in thirty nation worldwide.
The Australian banking sector is effective, safe, efficient and well-managed. It has supported the economy through the most difficult financial conditions in over 80 years. ANZ is being managed in a way that reflects the very significant economic and political uncertainties that exist in the global economy. ANZ is continuing to minimise reliance on short term wholesale funding, raising funds from more stable sources such as customer deposits and longer term wholesale funding.
Wholesale funding costs are elevated relative to the cash rate in comparison to before the GFC as global investors demand a higher risk premium from financial institutions. Deposits are also more expensive as financial institutions reduce their reliance on wholesale funding and compete to attract deposits. These increases in ANZ input costs are being reflected in the price of credit products.
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Maintaining Competitive Position
By providing best return to customer, ANZ remain competitive by managing cost, building relationship with customer and achieving business goals.
Regulatory Requirements
ANZ has to manage its regulatory requirement to provide a strong prudential and regulatory environment by holding capital reserve and manage liquidity to operate smoothly. It also helps to provide security to customer.
Cost of wholesale funding
After the Global financial crisis it is difficult to manage funding from wholesale market. So ANZ has to take care of cost of funding which is more volatile and expensive.
Bibliography
www.abs.gov.au › ABS Home › Statistics › By Release Date
http://www.apra.gov.au
www.rba.gov.au/statistics/tables/xls/d02hist.xls
http://www.theaustralian.com.au
www.anz.com
... Gross Development Produce generally, there is a persistent and pronounced trend towards consolidation of these institutions in Australia. With the combination of resilience contributions into the system, consolidation has generally resulted in the average size of superannuation institutions increasing significantly (measured by assets) during the decade to $2.6 billion in June 2012.
Macquarie Bank (now Macquarie Group) has risen from a small, Australian subsidiary of a UK investment bank to become one of the world’s most prominent banks. It is particularly prominent in the field of infrastructure where an innovative, specialist approach to investing and structuring has given it a platform to grow assets and revenues and secure early market share in an infrastructure privatisation renaissance.
The key results of NAB’s performance over last 2 years are $5.3b net profit attributable to the owners of the Company 1.1% decrease from 2013. $5.18b cash earnings, 9.8% decrease from 2013. $1.98 dividend per share, 4.2% increase from 2013.11.8% cash return on equity, 2.3 percentage point decrease from 2013. $67.6m community investment, 1.7% increase from 2013.69% employee engagement , 1 percentage point increase from 2013.100,000+ microfinance loans to people on low incomes since 2005. NAB has provided project finance for around 65% of Australian utility scale renewable energy projects since 2000.
Costco Australia is a subsidiary of US-based Costco Wholesale Ltd. Since 2009, Costco has provided an alternative to traditional supermarkets and grocery stores. Costco offers low-price
This chapter covers the overview of the country in a short history, banking system, commercial banks and interest rate theory. The chapter provides also the theoretical review of interest rate and profitability.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
This report gives the brief overview of the concept of corporate governance, its evolution and its significance in the corporate sector. The report highlights various key issues and concerns that are faced by the organizations while effectively implementing and promoting Corporate Governance.
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BHP Billiton is a diversified leading global resources company. BHP is world’s top producers of major commodities, including iron ore, metallurgical and energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel and silver. The largest producer in the world, BHP Billiton Limited has reported a profit of $ 200 billion market with a market capitalization of more than (ASX BHP) recently in the six months to December 2013 announced a profit of $ 7.8 billion. The total net profit figure of BHP’s includes more than $ 140 billion since 1985 (King, 2014).
Bibliography: Turnbull, S. (1997). Corporate governance: its scope, concerns and theories. Corporate Governance: An International Review, 5 (4), pp. 180--205.
The end of 2001 and the start of 2002 saw the end of a period of magnified share prices and booming businesses. All speculations of misrepresentation came to light and those firms which once seem unconquerable were now filing for bankruptcy. Within this essay, I shall discuss the corporate governance mechanisms and failures which led to the Enron scandal resulting in global corporate governance reforms being encouraged.
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Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
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