Estimate Okun’s Law using data on changes in unemployment and real GDP growth from the United Kingdom and can use regression results from the United States to compare. Focus on the macroeconomic data of the UK using FRED.
Factors relating to firm level include: The products and services offered to the market. The efforts taken by the division of a bank, which sells the products and manages their customer account. The client bases a bank target and this determines the results the banks obtain. The size of bank i.e. the larger the size the greater will be the economies of the scale achieved by the banks and lesser will be the cost. The degree of specialization or diversification from the bank output. The market share captured by the institution. Factors relating to industry level include: Ownership status the bank. As for government banks the main focus is on economic development. Competition in a specific industry may lead to concentration of the firm i.e. higher the competition lower the concentration of the firm and vice-versa. Factors relating to the country level include: Change in the economic environment of the country i.e. during the period of recession the asset site of banks become risky and the chances of default increases and vice-versa. The changes in the inflation where there is constant change in the general price level in the economy, which has an influence on revenue and cost of banking institutions. Among the results that could have affected income and expense of the bank, the following are listing : Probable chances of high short-term interest rates, shortening margins and creating fund problem due to increase in costs. A possible increase in variable, cost due to the fact that financial environments have become highly competitive. The possibilities of market ability for tax exempted securities along with credit problem arising. Rare occurrence of comparatively low interest rate, murky income compared to high interest rates. A risk that, successful innovators will be focused on expansion, both inside and outside their trading areas which can result in generation loss for banks.>GET ANSWER