dissertation

The Impact of the Subprime Crisis on the Global Financial Crisis: The Case for Effective Risk management in the Banking Industry in the UK

Introduction
The purpose of this chapter is to provide an overview of the whole dissertation and what it proposes to do. It will examine the dissertation title and provide a background on the topic in order to influence the development of the rest of the work. The major aim of this chapter is to be able to provide a brief explanation of what the title is all about and how the researcher will approach it in order to answer the research objectives. This chapter will thus be divided into a number of sections: background, problem statement, study rationale, aims and objectives, structure of the dissertation and chapter summary.

Background
During the year 2007, the world experienced one of the worst economic meltdown in history. The financial crisis affected many nations with the Asian region also experiencing difficult economic times as the rest of the world. Different studies have linked the development of the world economic crisis in 2007 to the US subprime mortgage crisis that became apparent from mid-2007 (Bedford, 2008). Due to the contagion effect of the crisis, the European markets were the very first to get affected by this issue followed by Asian countries.
A range of studies on the US subprime crisis have argued that the crisis was far much more complicated than any other crisis that has occurred in the US such as the Great depression or the savings and loan crisis. In this case, many of the securitize assets as well as derivatives had been transacted in the over the counter market (Denning, 2013). Thus, there was a paucity of information leading to counterparty, credit, liquidity risks were more severe than the cases of exchange traded products. There was absence of precise information at this time especially on the reality of the financial condition of many financial institutions in the midst of the crisis enhanced

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