Explain why more highly geared banks are more likely to fail. Critically assess gearing as one of

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Explain why more highly geared banks are more likely to fail. Critically assess gearing as one of the underlying causes of the financial crisis of 2008.

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Contemporary Auditing Real Issues And Cases

ISBN: 9780538466790

8th Edition

Authors: Michael C. Knapp

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Posted Date: May 15, 2024 11:42 PM

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Explain why more highly geared banks are more likely to fail. Critically assess gearing as one of

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Highly geared banks are more likely to fail due to several factors 1 Increased Risk High levels of leverage or gearing amplify the risk of financial institutions When banks are highly leveraged they h... View the full answer

Contemporary Auditing Real Issues And Cases

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