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Title: An examination of British bank balance sheet dynamics from 1945-2012
Author: Jaffar, Kalsoom
ISNI:       0000 0004 5989 7836
Awarding Body: Glasgow Caledonian University
Current Institution: Glasgow Caledonian University
Date of Award: 2015
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Given the changes in the macroeconomic and governmental policies in the UK since World War II, the current study aims to assess the impact of these changes on the balance sheet and profit of Major UK banks by using data covering 1945-2012. Until recently, studies on British banking focused almost exclusively on performance and efficiency and only focusing on the narrow time span mostly after the deregulation. However, this thesis is unique in concentrating on bank balance sheet changes due to changes in governmental controls and macroeconomic factors and extends the literature in this area by testing the relationship between these factors. By way of different methodologies such as trend, correlation, regression and canonical correlation analysis (CCA), the research provides an insight into the robustness of the findings regarding different methodological specifications. First, this research identified economic and regulatory changes that stimulated the changes in UK bank balance sheet over 1945-2012 by utilising trend analysis. The findings indicate that the balance sheet size expanded with increased bank operations, competition, innovation and merger and acquisition activities. Second, the interrelationship between balance sheet variables and their effects on profit are examined by employing correlation and regression analysis for Major UK banks. The findings indicate less significant relationship between selected variables from pre› competition (1945-1970) to post competition era (1971-2012). Finally, the current study also extends present understanding in relation to the relationship between balance sheet variables and macroeconomic factors methodologically by utilising CCA. The empirical analysis shows a decline in the effect of these macroeconomic variables from pre to post competition era indicating increased banks size as a reason behind which made it easy for them to absorb macroeconomic fluctuations without altering their balance sheet significantly. The above findings highlight the balance sheet rather than being regarded as a relatively simple but elegant financial position statement. Bank balance sheets can be regarded, over time, as a dynamic document that can be analysed to assess the operations of banks, both on and off the balance sheet. Therefore, the findings of this study are significant as they develop understanding of an important aspect of bank management from both a bank operational and an external factor perspective.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available