Essay Question Example | Topics and Well Written Essays - 500 words - 3

Question - Essay ExampleExternal factors are the forces that come from outside the financial industries and affect their normal operations holdly or indirectly. In most cases, external factors are beyond the industries control. The management of financial institutions has no control over them. The factors demand a robust legal cloth to regulate. External factors include demographic, political, technological the size of the industries themselves.The demographic structure is the composition and age of a population. The pupation is the primal market of the financial institutions. The age of population influences the financial services directly. The older and younger population is slight productive to the financial institutions because they do not use the banking services very often. They are mainly consumers kinda of investors. Some customers fail to honor their financial obligations such as timely loan repayment.The political surround has a critical role in determining the failur e or success of the banking sectors. The government has direct control over the financial through central banks. The countries, the central bank, have the mandate to regulate care rates. The government may also formulate policies that make it very challenging financial institutions to run their activities seamlessly. The differentiate of political instability destabilizes the banking systems.Because of the advancement in technology, financial institutions face serious financial crimes ranging from money make clean to robbery of banks through technological means such as using guns to rob banks. Internal factors bear upon the financial services industry are forces that emanate from within the industries themselves. The factors include industrial norms, ideologies, and management structures among others. bankruptcy by the management to comply with the norms and ethics of the industries has a negative influence on the growth of the industry. The insider