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- W1922107243 abstract "Purpose – This paper compares the performance of the big four UK banks and four Australian banks between 2004-2009. The banks are chosen according to the total assets as listed in The Banker magazine 2009. The purpose is to analyse why UK banks were more vulnerable to the financial crisis of 2007-2009 than Australian banks. The consequence of this study is what improvements can be made in relation to liquidity, leverage, loan to deposit, asset quality and capital ratios.Design/methodology/approach – The author adopts an empirical approach and gathers data from the annual reports of the big four UK banks and Australian banks and the database ‘Factiva’ and the Financial Times. The data contains liquidity, debt, capital, asset quality and profitability ratios during 2004-2009.Findings –The author’s data show UK banks had on average higher cash ratios, higher leverage ratios, higher loan to deposit ratios, higher capital ratios, lower asset quality, lower ROA but higher ROE than the Australian banks.Research implications- The results support the findings in the Financial Development Index 2011 of the World Economic Forum. UK banks should ameliorate its ranking on financial stability by improving the quality of loans and capital.Practical implications- The analysis is of use to regulators who are contemplating the need for reforms aimed at improving financial ratios of banks. Basel III Accord has introduced some recommendations but has its limitations.Originality/value – This paper's value lies in providing analysis of the top four UK and Australian banks’ performances during 2004-2009. There is room for improvement in providing a more stable financial environment in the UK." @default.
- W1922107243 created "2016-06-24" @default.
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- W1922107243 date "2010-01-01" @default.
- W1922107243 modified "2023-09-27" @default.
- W1922107243 title "Macro and Micro Prudential Regulatory Failures Amongst Financial Institutions in the United Kingdom: Lessons from Australia" @default.
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- W1922107243 doi "https://doi.org/10.2139/ssrn.1716264" @default.
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