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Financial Risk, Capital Structure, and Banking System examines the financial challenges, funding decisions, and institutional frameworks that influence the stability and growth of businesses and economies. Financial risk refers to the possibility of losses arising from factors such as market fluctuations, credit defaults, liquidity shortages, interest rate changes, and foreign exchange volatility, which can affect an organization's financial performance. Capital structure focuses on the combination of debt and equity used by a company to finance its operations and investments, with the objective of minimizing the cost of capital while maximizing shareholder value. The banking system, comprising central banks, commercial banks, and other financial institutions, plays a crucial role in mobilizing savings, providing credit, facilitating payments, and supporting economic development. Together, financial risk management, capital structure decisions, and the banking system are essential for ensuring financial stability, promoting efficient resource allocation, supporting business growth, and enhancing the overall performance of organizations and economies.
This lecture is part of BUA 305 Foundation and scope of Financial Management in the Business Administration department. The course has 2 recorded lectures across 1 series, all free to watch. Read or download the BUA 305 lecture note to study alongside the video.