Standard Chartered and Dubai World The lending problem Essay

Standard Chartered and Dubai World The lending problem - Essay Example This paper focuses upon Standard Chartered Plc, a financial services company, which operates in more than 70 countries around the world. The headquarter of the bank in London, the United Kingdom. The company has entered different countries through the joint venture, subsidiaries etc. The operation of the company is diversified as it offers operations in consumer banking, institutional banking, and corporate banking also. Standard Chartered is listed on the London Stock Exchange; also it is the constituent of the FTSE 100 index. The company is also diversified globally as it offers services all the continents of the world. 90% of the revenue of the company comes from the Middle East and other Asian countries and Africa. The bank offers a diversified range of products including mortgage loans, investment banking, wealth management, corporate banking, wealth management services etc. Dubai World is among one of the main clients of Standard Chartered Bank. The investment company has faced credit crisis in the time of the financial recession and the main creditor of the company was Standard Chartered bank. The geographical presence of the company minimizes their risk. In a globalized world where the multinational companies have to face different political conditions, economic conditions in different countries, then only diversification can minimize the risk of the portfolio of the company. In the time of financial crisis of 2007-09, when all the markets throughout the world have broken, then the diversification helped the company to manage the situation.