Financial Crisis in the UK Banking Sector Essay

Financial Crisis in the UK Banking Sector - Essay ExampleLikewise, those that did not have access to important natural resources have been fitting to access the resource base and exploit the same to their advantage. The characteristic advancement of information and technological systems has made it possible for populations, firms and corporations to exploit emergent opportunities with ease. Notably, a hearty percentage of the populations are taking practical steps to align their ways of life to the societal expectations with respect to improved standards of living. Apart from benefiting the society positively, inherent globalisation has also had adverse impacts on the wellbeing of the society. Perhaps the vault of heaven that has been the most affected by the copulation changes pertains to the economic segment. At this point, it cannot be disputed that the orb economy directly affects the quality of life of the populations. This has further been occasioned by the characteristic integration that has tied local and regional economy to the wider global economy. Thus trading operations at the global level have direct implications on the performance and general wellbeing of local, national and regional economy. This integration has made the financial sphere of influence susceptible to the negative impacts that stem from economic shocks. Coupled with the fragile nature of financial systems, the current economic in stability has undermined the ability of the respective systems to cushion themselves against relative negative impacts. One of the economic problems that has posed great challenges to the UK government as well as the global financial system pertains to the 2008-2009 financial crisis. Seemingly, relevant government are taking practical steps to reinstate financial stability and enhance optimal performance. This is elemental in enabling them to attain a sexually attractive state with respect to sustainable growth and development. Fundamentally, rela tive strategies are in line with their economic goals and objectives. Besides the challenges that are related to economic integration, the UK financial sector has been compounded by governance problems. At this point, it cannot be disputed that governance problems contributed a great deal to the financial crisis that the country experienced at this occurrence time. In a society that is characterized by uncertainty, effective governance is important in enhancing optimal performance. Governance in this regard is all encompassing and ranges from the expertise and policies to the rules and regulations that are established to guide behavior and decision making. These need to be based on informed thought and to bear desirable outcomes they need to be consistent with the economic changes being experienced in the market. Indeed, the fact that good governance is essential and contributes significantly to the integrity as well as stability of financial systems cannot be overstated. With thi s asset, corporations and organization can be able to maneuver their way through the volatile economic environment. It is against this background that this paper provides an in wisdom analysis of how poor governance in the UK financial sector contributed to the financial crisis that it experienced. To enhance coherence, the paper begins by explaining the notion and importance of good governance in the current financial corporate sector. Understanding Good Governance In his research, Hart (1995, p. 54) contends