People become cautious with their money. They really don't know where to invest the money and what are the good options for investment. So here is an overview of the Banking investment. Read and get inform about latest and secure way of investing the money in right product.
2. Summary
With the world being on shaky ground when it comes to finance, it is
only natural that people become cautious with their money. While
caution is all well and good, there also needs to be a continuous flow of
money to keep the economy from screeching to a halt. This is
something that the United Arab Emirates has understood well – as can
be seen in the dedicated efforts made to revive the economy through
support of banks. Read on to know how investment banking has been
rejuvenated.
3. How an investment banking is flourishing
in UAE
While a good chunk of the world is still recovering from the domino
effect that the alarming depression which followed the collapse of the
Lehman Brothers and the failure of the mortgage industry in the United
States of America.
There are some who have managed to get ahead of the others in terms
of recovery and therefore have also managed to lay down a potential
path of recovery. One such front-runner is the United Arab Emirates or
UAE.
With careful handling, the banking sector has managed to not only
survive in an economically strained world, but has also managed to
stretch its muscles and grow. UAE’s economy did have a slowdown in
the aftermath of the US economic meltdown, but it has slowly and
steadily made up the losses then incurred, as is evident by the robust
banking industry that the country now boasts of. Nowhere is this more
evident than in the investment banking industry.
4. Banks have been stabilised with an adequate amount of cash inflow,
ensuring that there would be no lack of capital. Since then, the banking
sector in the country has managed to bring itself out of the depression
bit by painful bit, and in 2013 is expected to maintain its annual growth
rate above 4%.
The banking sector in the country has, after the Lehman collapse,
focused primarily on traditional commercial banking. While there was a
period wherein the credit quality declined, it was not too long lasting. It
did result in loan growth slowing down, but it lasted just as long as the
credit quality’s decline did.
In time it managed to grow strong and as a side effect of the meltdown,
the lending criteria have managed to become stringent. However, the
near standstill in loan growth couldn’t last forever, and soon it resumed
its growth. Banks managed to increase their loans and other such
advances by 5.6%. But this was possible in real terms primarily because
there was also an increase in deposits by 8.9%.
5. These deposits undoubted have given a much needed influx to the
banking sector, allowing it to push capital on to maintain the cash flow.
The increase in deposits can be seen as an active increase in personal
banking, perhaps due to aids such as internet banking that help make
banking easier and hassle free. While the deposits and the resulting
loans have increased, the problem with such growth is that banks run
the risk of having a risk appetite that is nearly unhealthy.
