Critical thinking Mo Coursework Example | Topics and Well Written Essays - 500 words

Critical thinking Mo - Coursework Example Some of the banks that have been affected by the uncertainty in the oil industry are those from the European Union, America and from the oil producing countries, however, banks in the United Arab Emirates have remained relatively stable especially in the bleak outlook of oil industry of 2011. Revising down of the economic outlook of the growth of OPEC countries from 3.7 to 3.6 was an ill advised idea, this is because that made the stakeholders get an escape path from being innovative and implementing structures that would have ensured that the growth rate is maintained even in the reduction of global demand for oil and oil products. Looking for other ways to diversify risk and cushion the economies would have produced better results than just revising down forecasts for growth. Investments in the oil industry are a key in ensuring stability in oil production and the $300 billion the OPEC member states have set aside for upstream investment in the oil industry is a right step in the right direction. Ensuring constant supply of oil and maintaining a reserve potential will enable the OPEC countries to be able to regulate prices from rising too high or going down too low. The idea of United Arab Emirates bank having weathered the economic crisis of the euro zone that happened in 2011 being solely dependent on internal structures to manage their risk preparedness is far-fetched and cannot be solely relied on to explain the stability. This is because the country, which exports second hand goods to Africa, has a significant part of its economy being driven by these exports; banks’ diversifying their products to this sector was also a contributing factor that made them more stable amidst the euro zone crisis. However, internal structures are needed in the banking industry of the oil producing countries especially those that have no other source of revenue to drive their economy and failure to this may