Essay Question For IE Business School, Spain on Challenges faced by Financial Sector Today on Global Level

1. Presentation on the greatest challenges
Finance Sector is facing today
“My role to the Finance Sector in the medium term”
AARJAV JAIN
Email Id: aarjav@dineshaarjav.com

2. Global
Economy
Country
Economy
State/
City
Economy

3. Going back in the History
• There was a great recession referred to as “Second Great Depression” on the
Global Level in 2007
• According the U.S. National Bureau of Economic Research the US recession
began in December 2007 and ended in June 2009, and thus spanned over 18
months hence the spilling its effects all over the globe.
• The fall of Lehman Brothers on 15 September 2008, a major panic broke out on
the inter-bank loan market.
• The global recession resulted in a sharp drop in international trade,
rising unemployment and slumping commodity prices.
• As share and housing prices declined, many large and well
established investment and commercial banks in the United States and
Europe suffered huge losses and even faced bankruptcy, resulting in massive
public financial assistance.

4. Reasons For Global
Recession
High private
debt levels
Trade
imbalances and
debt bubbles
Pre-recession
economic
imbalances
Derivatives
Shadow banking
system

5. Finance Sector in 2014
• Since 2009, The Global Economy has been slow as
majority countries are still recovering from the Great
Recession.
• Although, some of the countries like India, China,
etc didn’t suffer a major setback and did recover
soon from the global recession.
• But, the early recovery didn’t help as the Global
economy has been slow.

6. Major Countries Affecting The Global
Financial Industry
Global
Economy
United States
of America
European
Countries
Asian
Countries
Gulf
Countries

7. Challenges in Finance Sector in
USA
• The Velocity Of Money In The U.S. Falls
To An All-Time Record Low
• The Next Recession has Already Begun
For America’s Middle Class as the U.S.
economy continues to lose more good
jobs and 20 percent of all U.S. families do
not have a single member that is
employed at this point.
• Huge Red Flags For The U.S. Economy
as we look toward the second half of
2014, there are economic red flags all
over the US. Industrial production is
down. Home sales are way down. Retail
stores are closing at the fastest pace
since the collapse of Lehman
Brothers. U.S. household debt is up
substantially
• If Economic Cycle Theorists Are Correct,
2015 To 2020 Will Be Pure Hell For The
United States

8. Problems in Finance Industry in Europe
• Though often described as global, the
financial crisis really hit Western Europe.
• Its effect on the financial firms in those
regions was greater than elsewhere, those
regions have recovered slowest from the
global recession, and their regulatory
response has been more dramatic too.
• Several of the most developed financial
sectors now find themselves on a hard path
– struggling to profit in the face of slow
economic and credit growth, customer
distrust, market saturation, and burdensome
regulation.
• In Europe, in wholesale banking, the
pressure of increased operating and capital
costs presage a shake-out of capacity which
is already reducing market liquidity and
restricting access to credit for non-rated
companies.
0
5
10
15
20
25
ROE 2006 ROE 2014
Europe

9. Financial Industry
Problems in India• Even though India was not much affected
by the Global Crisis, even then there are
financial issues due to Global slow down
• High Interest rate charged by the Banks
makes the financial crisis even worse
• The value of Rupee against Dollar has
fallen to all time low making 1 Dollar
equivalent to 63.64 rupees, all due to
declining Exports and increasing Imports
• Even though the SENSEX is booming to
all time record high owing to Foreign
Direct Investments, the Financial market
is still very low
• The slow decision making among the
Government even makes the financial
condition worse.

10. My role to the Finance
Sector in the medium term
• My Father is highly experienced in his professional pursuit of practicing as
Chartered Accountant, advising, guiding in all matters of Taxation, Audit,
Accounts,
Bank Finance, etc to all his clients corporate and all others, my aim is to
take this legacy forward as a Financial Advisor after specializing in Finance
at the IE Business School.
• IF an opportunity strikes, I will leave no stone unturned to work in Spain as
a Financial Advisor hence improving the financial condition of Europe as
well as Spain.
• I would like to work with commercial as well as private banks aiming to help
corporate world in getting debts at less rate of interest.
• It would be a matter of pride for me to help assisting the Government,
making proper financial policy and help them in planning proper strategies
so that we see a better financial scenario

11. Reasons for Choosing Masters in
Finance at the IE Business School.
• I belong to a family of professionals, my Father a highly experienced in his professional
pursuit of practicing as Chartered Accountant, advising, guiding in all matters of
Taxation, Audit, Accounts,
Bank Finance, etc to all his clients corporate and all others. My Mother is also highly
qualified. After achieving Master of Law Degree she has been on the Board of Directors
of many companies advising them with various corporate matters. I have inherited the
ability and quality to achieve success through their guidance and encourage me to the
attainment of higher professional qualifications in finance, administration, accounts,
taxation, etc. I have acquired in born quality and developed keen interest to become a
scholar in finance and accounts.
• This course will help me to develop all along faculty in commerce and finance and to
become a leader in my practical field after completing my Post graduation Course. This
will further help me to attain success in my life wherever I will go. I have no doubt this
Post graduation course will make me to lead a nice life, respectable and well
remunerated.
• I strongly feel that proceeding through graduate financial program is ideal for developing
skills in logical analysis, team work, communication and administration and preparing
me for managerial role in the future.

12. Thank
You