Credit Crisis: Does the trickle down impact continue to exist in major U.K. Commercial Banks?

By

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

Declaration

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 1: INTRODUCTION5

Problem Statement5

Research Aim5

Research Question5

Objective of the Research6

CHAPTER 2: LITERATURE REVIEW7

Credit Crisis7

Trickle down impact9

Trickle down growth and Economic Development10

CHAPTER 3: RESEARCH METHODOLOGY12

Research Strategy12

Research Method12

Sample13

Research Instrument used13

Data Collection Sources14

CHAPTER 4: ANALYSIS AND DISCUSSION15

CHAPTER 5: CONCLUSION16

REFERENCES17

CHAPTER 1: INTRODUCTION

This study deals with the impact trickle down impact of credit crisis in major UK commercial banks. An extensive research will be undertaken in order to elaborate upon the subject of credit crisis. The chapter gives a description of the background, aims, objectives and chapter layout on which the entire dissertation will be based.

Problem Statement

The problem to be dealt with in this study will be the credit crisis and trickle down impact in the context of major UK banks.

Research Aim

The aim of this research is to assess the trickle down impact in connection with the credit crisis situation in the commercial banks in United Kingdom.

Research Question

The study will be conducted by answering the following research questions:

What do the terms credit crisis and trickle down impact refer to?

What is the possible linkage between the credit crisis and trickle down situations in the economy?

How has the trickle down impact developed in commercial banks in UK?

Does the impact continue to exist?

What has been the ultimate of the trickle down impact to the commercial banks in UK?

Objective of the Research

This research study will be conducted with an objective to:

Define and link the credit crisis and trickle down impact;

Describe the development of the trickle down impact in the commercial banks in UK and study their existence;

Elaborate the effects of credit crunch and trickle down impact on the economy in general and banks in particular;

CHAPTER 2: LITERATURE REVIEW

The chapter will form the basis of the literature search and thus, a major part of the research study. It will provide an in-depth explanation of the credit crunch, trickle down impact and the potential effects of their linkage on the economy and financial institutions.

Credit Crisis

A credit crisis, or credit crunch, pertains to the decline in the general availability of credit (loans) or an abrupt shrinking and tightening of the terms needed to acquire a loan from the banks. The idea of credit crunch normally refers to a lessening of the credit availability irrespective of an increase in the official rates of interest. In such cases, there is an implicit change in the association between interest rates and credit availability (Mehran, 1995, pp. 163). This change may result in either the occurrence of credit rationing or lesser availability ...