BANK FINANCIAL CRISIS

AND
INVESTOR CONFIDENCE
DESIGNED BY:
ATIF JAVED
MS (Accounts and Finance)

THE DERPARTMENT OF BUSINESS ADMINISTRATION

UNIVERSITY OF LAHORE, ISLAMABAD Campus.
Introduction
Background
Statement of the Problem
Research Objective
Hypothesis
Methodology
 Statistical Tool
Literature Review
Data Analysis
Conclusion
Recommendation
Background
Financial crises
 Investor confidence
Systemic banking crises and effects on investor’s
behavior
Statement of the Problem
Bank Financial Crisis

Impact
Impact on
on
Economy
Economy
&
&
Impact
Impact on
on
Investments
Investments

Impact on Investor
Confidence
Research Objective
 Why was these bank crisis occurred,
 What are the reason behind it,
 Types of crisis,
 Its consequences on people as well as on the economy,
 Investments benefits socially and economically.
 Bank crisis in Pakistan.
 Obstacles and opportunities in investments.
 Challenges faced for growing investments.
 Remedies for coping up from this problem.
Hypothesis
To make research focused on objectives
To offer a clear framework and a guide when
collecting, analyzing and implementing the data
Serves as a testing toll of the relationship
between variables
Methodology
Research Methodology
Measurement Techniques
Measurement Instrument
Population
Data Analysis
Closed end Questionnaire
Open ended Questionnaire
Data gather from Closed end Questionnaire
Methodology
Primary Data
Data gathered by surveying respondents directly

• Interviews
• Discussions
• Questionnaire
Open ended Questionnaire
Close ended Questionnaire
Methodology
Secondary Data
• Internet
• Research Journals
• State Bank of Pakistan website
• Dawn News website
• Time Magazine
• Investment related articles on web
• Investment related articles on papers
• IBP website
• HBL website
Statistical Tool
REGRESSION LINE
Co-efficient of Co-relation
Literature Review
Overview of Investments
• Introduction of Investment
• Principle of Investment
• Basic Characteristics of Investment
• Equilibrium of Investment Characteristics
• Types of Investment Companies
Literature Review
Overview of Bank Financial Crisis
• Introduction
• Why it Begun?
• Few important Questions and their Answers
• Consequences and Remedies of Bank Crisis
• World Bank Report
Literature Review
Benefits of Investments
• Social Benefits
• Economical Benefits
• Financial Benefits
Literature Review
Bank Crisis in Pakistan
• Introduction
• Obstacles of Investment in Pakistan
• Challenges of Investments in Pakistan
Data Analysis
Calculating Variance and Standard Deviation for
1st BFC Test
Calculating Variance and Standard Deviation for
2nd IC Test
calculation for the equation of regression line
calculation of co-efficient of co-relation
Conclusion
Factors causing financial crisis and effecting investors confidence

• lack of management.
• Advancing the unsecured loans.
• Investments in those areas where high risk is
involved.
• Bank financial crisis bought the loss of property and
mortgage which also affected the investor’s
confidence and people all around the world now
showing reluctance in investment in these assets due
to high risk and low turnover.
Conclusion
• lack of back up plans and massive government
intervention, bough the crisis of banks which lead
the confidence level of investor lower than from
before.
• Unstable law and order situation, changing of oil
process globally, high inflation rate.
• High tax rate is not the key factor for bank crisis
and as a results left no impact on investor’s
confidence.
• Huge investment in unsecured assets .
Conclusion
• lack of liquidity turnover all over the
world.
• Lack of recovery in unsecured assets like
Personal loans, cash lines, smart loans, credit
cards, cash cards etc, was the major factor in
bringing the financial crisis globally.
Recommendations
Recommendations to gain investors confidence and to avoid and
recover from financial crisis.
• Banks should adapt such policies for ensuring
them that these crisis will not occurred in future.
• Banks should provide some incentives to old
customers by lowering the interest rates.
• Banks should make back up plans.
• Government should take special care to lowering
down the impact of this crisis and for boosting
the investments by different ways.
Recommendations
• Government with the help of central bank
should make policies for lowering the interest
rates.
• Tax rate should be low for new investors who
comes in country.
• There should be strict check and balance on oil
prices and these prices.
• Banks has to focus on lending side
Recommendations
• For reverting back to the normal position, banks
has to advertise their products in massive way as
a result people will attract.