Factors external to commercial banks are the main cause of individual commercial bank failures. Discuss
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In the last century, there have been lots of commercial bank failures and some of the causes were due to external factors. The nature of banking is strongly related to the management and control of risks. The external factors are from political, economic, social and technology. There is also the other side to consider, which are the internal factors. These internal factors can be managerial weaknesses, poor internal routines and controls and fraud. These factors both play a large part in commercial bank failures. I will be looking at bank failures in America, Japan and the United Kingdom, to see what the causes were of these failures. The external factors that can cause commercial bank failures can be analysed by using a PEST analysis. This will allow for a clear definition of the external factors. The first important area to look at is the political environment for banks and includes...


