Sample Thesis Paper
However, the last time the UK banking industry showed phenomenal growth rates was almost a decade ago in 2000 when the market saw a staggering growth rate of 21.3% (Data Monitor 2003). Numerous attributes of the industry were associated with this phenomenal growth and one of the shortlisted causes was increased engagement in programs to ensure customer loyalty.
A factor that places the UK banking industry in a complicated position is the fact that the economy suffers from a budget deficit. While this budget deficit observed a decrease in 2003, it raised again in 2007 and 2008 as a result of the bailout programs that the government had to launch in order to rescue the economy from the more severe implications of the global recession. The decrease in collected tax also observed an increase in 2008 and 2009, causing the government to consider borrowing and pushing the budget deficit higher (Data Monitor 2009). The borrowing also led the economy into external debt which has been recorded to amount at over 400% of the economy’s GDP (Data Monitor 2009). Problems such as these place working elements of the UK economy in a highly sensitive position.