留学生Essay写作—诺森罗克与HBOS的财务状况比较

1、http:/ 留学生论文专业定制代写网站留学生Essay写作诺森罗克与HBOS的财务状况比较The topic I have chosen for my Research Analysis Project is“Analysis of Financial Situation of NORTHEN ROCK plc with comparison to HBOS plc”for the year Ended 2006,2005&2004.1.2 CONTEXTGlobal Economy is indicating that we are moving towards recession,which affected the customer confidence and buying power.Even though the Bank of England Base Rate has been rising,it remains relatively low by historic standards.Long term unemployment remains low and we

2、 continue to see stable levels of economic growth.1.2.1 We expect house price inflation to moderate,and we continue to see little prospect of a severe house price correction,given that mortgages remain comparatively affordable.High street banks&financial institutions used heavy marking strategies to gain the customers confidence.Northern Rock is currently the 5th largest UK mortgage lender,and the largest financial institution based in the North East of England.Northern Rock ran into liquidity i

3、ssues in late 2007,(http:/www.lse.co.uk)1.2.3 Northern Rock Building Society was formed on 1 July 1965 as a result of the merger of Northern Counties Permanent Building Society(established in 1850)and Rock Building Society(established in 1865).Northern Rock Building Society then merged with a number of small local building societies and,prior to its conversion to a public limited company in October 1997,was an amalgamation of 53 societies.1.2.4 A significant development in the recent history of

4、Northern Rock was its conversion on 1 October 1997 from a building society to a public limited company,listed on the London Stock Exchange and authorised under the Banking Act 1987.The conversion also resulted in the establishment of The Northern Rock Foundation,a charitable body which is entitled to receive approximately 5%of the annual consolidated profit before tax of Northern Rock plc.MORTGAGE&FINANCIAL INSTITUION SECTOR1.2.5 A mortgage is a method of using property(real or personal)as secur

5、ity for the performance of an obligation,usually the payment of a debt.The term mortgage refers to the legal device used for this purpose, but it is also commonly used to refer to the debt secured by the mortgage, the mortgage loan.(http:/en.wikipedia.org/wiki/Leverage_(Mortgage)Financial institution1.2.6 Northern Rock is a financial institution,in economic terms;a financial institution acts as an agent that provides financial services for its clients or members.Financial institutions generally

6、fall under financial regulation from a government authority.Common types of financial institutions include banks,building societies,credit unions, stock brokerages,asset management firms,and similar businesses.(http:/ en.wikipedia.org/wiki/Financial_institution)Function1.2.7 Northern Rocks function as a financial institutions provide a service as intermediaries of the capital and debt markets.They are responsible for transferring funds from investors to companies,in need of those funds.The prese

7、nces of financial institutions facilitate the flow of monies through the economy.To do so,savings accounts are pooled to mitigate the risk brought by individual account holders in order to provide funds for loans.Such is the primary means for depository institutions to develop revenue.Should the yield curve become inverse, firms in this arena will offer additional fee-generating services including securities underwriting,sales&trading,and prime brokerage. (http:/en.wikipedia.org/wiki/Leverage)2.

8、0 Aims&Objective2.1 REASON FOR CHOOSING THIS TOPIC2.1.1 The fifth Largest UK lender Northern Rock was ejected from the FTSE 100 and narrowly escaped the small companies cap and fell to FTSE 250,after seeing its share price dive by more than 85%to just 103p following revelations that it had agreed emergency funding with the Bank of England. But the group should avoid the ignominy.(http:/www.nebusiness.co.uk/ business-news)2.1.2 Northern Rock and HBOS plc both are mortgage lenders with their base

9、almost in international market but the reason to why the credit crisis in USA affected Northern Rock plc.(Northern Rock Share price,www.lse. co.uk)2.1.3 With more lenders in the market,competition for new customers rocketed.Instead of staying loyal to your mortgage lender for 25 years,you were expectedand encouragedto switch every few years.Just one in five mortgage borrowers are now languishing on their lenders SVR(which is usually 2%higher than the most competitive two-year deal),with the vast majority re mortgaging periodically to a new deal with a new lender.And the result of all this competition was that UK mortgage market became one of the most competitive in the world.(http:/)2.2 AIMS and Objectives of the Report2.2.1 To analyse the fragile nature of the international capital market and how perilous it can be.2.2.2 The purpose of this project is to analyse

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