George Soros is founder and chairman of the Open Society Foundations.
The issue of global financial crisis caused customers to panic and this affected all the economic sectors across the globe. However,customers in banking industry were the ones hard hit to an extend that they now have a disinclination towards the banking sector. ln developing countries such as Zimbabwe where the economy has taken a nose dive due to mismanagement,the situation has become difficult for banks to retain customers if they loose them. Customer retention has become a big issue hence needs proper strategies
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The global financial crisis can be seen as a temporary crisis or as the beginning of a fundamental change of model. The crisis has created impacts at many different levels. Not only the causes but also the consequences of the financial crisis are now being assessed by and analysts. The sustainability of the current pension systems has been endangered. As a result of the crisis we may be forced to raise . and evictions have been other dramatic consequence. Some countries are already implementing drastic. Short-termism and inappropriate regulation incentized excessive risk taking by contributing to the real state bubble and to the weakness of the financial sector. Many lending institutions disappeared or had to be rescued by governments. Free flow of capitals and interconnectedness also contributed to the contagion effect. Loopholes in fiscal regulation and have been accused of exacerbating the effects of the crisis. The question is whether the may have really triggered a change of the economic, political and social model or if things will remain mostly the same. Are our political and economic elites doing enough to make sure another similar financial crisis would be prevented? Are the reforms going to be deep enough or we will continue working business as usual?
The Fed's QE policy, and variants of it elsewhere, have caused the major central banks' balance sheets to expand dramatically (from $5-6 trillion prior to the crisis to almost $20 trillion now), causing financial markets to become addicted to easy money. This has led, in turn, to a global search for yield, artificial asset-price inflation, and misallocation of capital.
(Klaus Schwab, , Project Syndicate, Jan 6, 2014)