Business Environment and the Analysis of the Financial Health of Bank Essay - 1

Business Environment and the Analysis of the fiscal Health of Bank of America Corporation - Essay ExampleThe study discusses the impact of globalization on the business strategies of Bank of America Corporation (BAC). The Bank of America Corporation is a Delaware Corporation in addition to being a bank holding company as closely as a financial holding company. It is headquartered in Charlotte in North California. BAC provides a varying array of banking as well as nonbanking financial products and services all over the United States in addition to certain overseas markets, through their banking and nonbanking subsidiaries. BAC functions in six business divisions, namely, Deposits, Global Commercial Banking, Global Card Services, Global Banking & Markets, central office Loans & Insurance, and Global Wealth & Investment Management. As of December 2010, BAC operates in all the states of the United States of America and 40 other countries across the world. BAC caters around 80% of the population of the United States through their retail banking segment. The business surround and the markets in which the BAC carries out its business are dynamically influenced by the developments in the economies of the US and other countries. In the year 2010, the worldwide economy continued to recuperate, though the growth was not even across the mingled regions. The US, the UK, and Europe showed modest growth, while the countries like China, Brazil, and India demonstrated rapid expansion. The US economy started to improve at the beginning of 2010 as a result of reasonable development in consumption level as well as inventory rebuilding in the nation. However, the growth slowed down in the mid of 2010 as a result of the escalation of the financial calamity in Europe. Nevertheless, notwithstanding the modest economic augmentation in 2010, BAC generated guiltless cash flows worth $1.5 trillion from their nonfinancial businesses as a result of their vigilant financial practices in the business. Furthermore, the credit quality of bank loans improved considerably in the year 2010 and the continuous economic revitalisation enhanced the atmosphere for bank lending. Since the latter part of 2010, bank commercial as well as industrial loans amplified, illustrating augmented loan demand as a result of stronger production and capital spending in addition to inventory building.