Developments in Santander

FS2002C Critically evaluate developments in relation to ANY iodine BANK of your choice. 991 Words In this essay I intend to critically evaluate current developments in the Banking sector with relation to the Santander group. Since the worldwide credit c fertilizech Santander has become a forerunner in the UK banking sector. They have not suffered the instability of other leading high-pitched street banks or every major escape of consumer authorization as suffered by many of their competitors. There are a number of reasons for Santanders stability throughout the banking crisis: Santanders lack of exposure to subprime lending. The chairman, Emilio Botin, likes to parody Rudyard Kipling, espousing three simple rules: If you dont full understand an instrument, dont deprave it; If you would not buy a specific product for yourself, dont try to handle it.; If you do not know your customers very well, dont lend them any money. If you do these three things, you will be a come apart banker, my son. By avoiding complex sub-prime securitized packages, popular with British banks, Santander was not heavy-laden with the losses that precipitated the banking crisis. Spanish central banking imposing dynamic provisioning in July 2000.

Dynamic provisioning required banks to build their capital reserves in the goods times in order to protect them in the subject of an economic downturn. The Bank of Spain also imposes strict rules on the cordial of financial derivatives Spanish banks can hold. This left wing the better run Spanish banks such as Santander with funds available to buy up the casualties of the crisis at bargain prices. Santanders reliance on retail banking by building the customer base to sell other financial products. The focus on retail banking also led Santander to favour the purchase of deposit portfolios rather than bring portfolios a fact which rewarded them handsomely with their involvement with ABN-Amro and Bradford & Bingley where they left what turned out to be toxic debt to the likes... If you want to ram a full essay, order it on our website: Ordercustompaper.com

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