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Ref No: 869

Title

Analysis of profitability of banks: Comparative study of domestic and foreign banks in UK

 

Introduction

Management Research Proposal: Identification of key factors which are involved in cost-effectiveness of banks in United Kingdom is very important in order to understand the integral managementfinancesections and performance of bank policies. This study is thereforefocused over the analyzation of all the determinants that play a key role in profit gaining and revenue generation of banks and carry out the comparisonbetweenefficiency and success of domestic and foreign banks in United Kingdom(Havrylchyk, 2006).

Through previous workings and literature on this subject are less centered on substantial aspects of banking financial structures, quality of the institution and managements across the region over bank profitability but is majorly concerned about working of domestic versus foreign banks by using both bank level and country level statistics. This paper also empirically identify the cross country factors  of bank profitability in domestic and foreign United Kingdom banks with respect to their characteristics, macro-economic background, institution quality, regulation of banking sectors and supervisions across chief countries.  This paper, in regard to previous researches also investigates about the joint influences of differences between foreign banks and home country banks(Kosmidou, Pasiouras, Zopounidis, Doumpos, 2006).

Networking

For the refinement of the following researchtopic, feedbacks from executives and experts of the field have been utilized for betterunderstanding and argument developing. A vast study of financial services and their augmented importance have been considered for indulgence of determinants and internal factors that majorly changes a bank’s management decisions and policy destinations(Kim, McKenzie, 2010). Moreover, the link of such profitabilitydeterminants of both domestic and foreign banks with liquiditylevel, provisioning strategy, size of the bank, adequacy of the capital and management expense shave been claimed.  On the other hand, study of external factors which are both industry related and finance related were reflected to imitate the legalized atmospheres and finances where the operations of financialinstitutions are carried out.

The collection of feedbacks from these networking was used to establish an experimental investigation towards the key determinants and analysis of bank profitability in reference to the marketing configuration discrepancies that are specific in case of foreign and domestic banks comparison(Sensarma, 2006). Thesediscussions also helped in making the understanding of degree of market concentrations that affect banksprofitability and governing constraints that forbid a bank either foreign or domestic to undertake specific profit gaining activities.

Literature Review

The studies previously done over this subject can be categorized into two major groups. The first one is the cross country assessment of profitability of United Kingdom banks while the other one is the investigation of influences of banks and their marketing structures over their profitability….