scholarly journals Values-Based and Global Systemically Important Banks: Their Stability and the Impact of Regulatory Changes After the Financial Crisis on it

2021 ◽  
Author(s):  
Theresa Schäfer ◽  
Sebastian Utz
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Social Impact ◽  
Bank Stability ◽  
Regulatory Changes ◽  
The Difference ◽  
The Impact ◽  
Systemically Important Banks

AbstractWe study the financial stability of Values-Based Banks (VBBs) and Global Systemically Important Banks (GSIBs), and how regulatory changes in the aftermath of the financial crisis affected bank stability. These two types of banks allow contrasting an environmental and social impact banking approach to a conventional one. VBBs exhibit significantly higher financial stability before and during the financial crisis. However, regulatory changes in the aftermath of the financial crisis requiring higher capital buffer, have significantly affected GSIBs and rendered the difference in stability levels insignificant.

The impact of credit risk on the financial stability of commercial banks in Vietnam

2021 ◽  
Vol 11 (2) ◽  
pp. 67-80
Author(s):  
Nguyen Quoc Anh ◽  
Duong Nguyen Thanh Phuong
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Financial Stability ◽  
Dynamic Panel Data ◽  
Z Score ◽  
Return On Equity ◽  
Score Analysis ◽  
Negative Effect ◽  
The Difference ◽  
The Impact

This study investigates the impact of credit risk on the financial stability of Vietnamese commercial banks. The paper uses the Z-score to proxy the financial stability of banks. We use the data of 27 Vietnamese commercial banks on BankScope, during 2010 - 2019. The paper applied a dynamic panel data approach; the selected method is the difference GMM (DGMM). The key question discussed is which factor impacts on Z-score. Analysis results show the negative effect of non-performing loans on the financial stability of banks. When commercial banks have higher non-performing loans, the lower the financial stability is. Additionally, bank-specific variables such as equity on asset ratio, the return on equity, the size of the bank and set of macroeconomic variables affect the bank’s financial stability. Based on the analysis results, we imply relevant policies for the State Bank of Vietnam and commercial banks.

THE IMPACT OF BASEL III ON THE RUSSIAN BANKING SYSTEM

2021 ◽  
Author(s):  
Danila Andreevich Yakovlev ◽  
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Banking Regulation ◽  
Basel Iii ◽  
Entire Country ◽  
The Impact ◽  
Systemically Important Banks

Currently, the issue of banking regulation is one of the most urgent due to the fact that the destabilization of this area can threaten the financial stability of the entire country. The Basel Agreements use common approaches to the capital of banks in different countries, they are formulated taking into account possible risks and the presence of systemically important banks. The article analyzes the impact of the Basel III standards on the banking system and assesses the impact of these standards on the development of the banking system.

Bank mergers and acquisitions in Greece: the financial crisis and its effect on shareholder wealth

2019 ◽  
Vol 16 (2) ◽  
pp. 273-296 ◽  
Author(s):  
Ioannis Tampakoudis ◽  
Michail Nerantzidis ◽  
Demetres Subeniotis ◽  
Apostolos Soutsas ◽  
Nikolaos Kiosses
Keyword(s):  
Financial Crisis ◽  
Mergers And Acquisitions ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Shareholder Wealth ◽  
Conclusive Evidence ◽  
Wealth Effects ◽  
Bank Mergers ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the wealth implications of bank mergers and acquisitions (M&As) in the unique Greek setting given the triple crisis phenomenon – banking, sovereign debt and economic crises – that prevailed after the global financial crisis. Design/methodology/approach The study examines bank M&As and bank transactions over the period from 1997 to 2018, as well as government-assisted M&As during the crisis. The wealth effects of bank M&As are assessed using both univariate and multivariate frameworks. Findings Findings show a neutral crisis effect on the valuation of M&As upon their announcement. However, the authors provide conclusive evidence that M&A completions are value-destroying events for acquiring banks during the crisis, far worse than in the pre-crisis period. Greek banks also fail to create value from government-assisted mergers. The results suggest that the financial stability and the prevention of further deepening of the Greek crisis with possible contagion effects were achieved at the expense of shareholders and taxpayers. Originality/value To the authors’ knowledge, this is the first study that examines the impact of the Greek triple crisis on the wealth effects of bank M&As and bank transactions. Also, the study provides first evidence with regard to the economic impact of government-assisted M&As in the European context.

scholarly journals The Impact of the Financial Crisis on Financial Integration, Growth and Investment

2012 ◽  
Vol 220 ◽  
pp. R29-R35 ◽  
Author(s):  
Robert Inklaar ◽  
Juan Fernández de Guevara ◽  
Joaquín Maudos
Keyword(s):  
Financial Crisis ◽  
Financial Development ◽  
Financial Crises ◽  
Financial Integration ◽  
Economic Cost ◽  
Uncertainty Aversion ◽  
The Past ◽  
Regulatory Changes ◽  
The Impact ◽  
European Financial Integration

Financial crises, and in particular those of the past few years, have severe consequences for the affected economies. In this paper we analyse the impact of financial development and European financial integration on growth and we find no reversal of the growth benefits of financial development and integration in recent years. This highlights the economic cost of regulatory changes that would reverse European financial integration. We also find that, following a financial crisis, investment declines more in countries with a greater degree of uncertainty aversion, which can be informative for evaluating post-crisis economic performance.

The Impact of the Global Financial Crisis on Central Banking

2019 ◽  
pp. 170-192
Author(s):  
Alex Cukierman
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Financial Stability ◽  
Inflation Targeting ◽  
Global Financial Crisis ◽  
The United States ◽  
Central Banking ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Regulatory Reforms

This chapter describes the impacts of the global financial crisis on monetary policy and institutions. It argues that during the crisis, financial stability took precedence over traditional inflation targeting and discusses the emergence of unconventional policy instruments such as quantitative easing (QE), forex market interventions, negative interest rates, and forward guidance. It describes the interaction between the zero lower bound (ZLB) and QE, and proposals, such as raising the inflation target, to alleviate the ZLB constraint. The chapter discusses the consequences of the relative passivity of fiscal policies, “helicopter money,” and 100 percent reserve requirement. The crisis triggered regulatory reforms in which central banks’ objectives were expanded to encompass macroprudential regulation. The chapter evaluates recent regulatory reforms in the United States, the euro area, and the United Kingdom. It presents data on new net credit formation during the crisis and discusses implications for exit policies.

scholarly journals Macroprudential policy and financial stability, role and tools

2020 ◽  
Vol 4 (4) ◽  
pp. 45-54
Author(s):  
Mehdi Bouchetara ◽  
Abdelkader Nassour ◽  
Sidi Eyih
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Full Employment ◽  
Financial System ◽  
Policy Instruments ◽  
Banking Crises ◽  
Real Economy ◽  
Macroprudential Policy ◽  
Systemic Risks ◽  
The Impact

The aim of macroprudential policy is to ensure financial stability by avoiding the outbreak of banking crises, which have a dangerous effect on the economy. Is macroprudential policy effective in the face of banking crises and systemic risks? The macroprudential policy has received significant interest from policy-makers and researchers. A few developing countries were using macroprudential policy tools well before the 2008 financial crisis, but significant progress has been made thereafter in both emerging and industrialized economies to put in place specific institutional settings for macroprudential policy. The fundamental objective of macroprudential policy is to maintain the stability of the financial system by making it more resistant and preventing the risk build-up. The objective of this paper is to analyze the important role of macroprudential policy in ensuring overall financial stability. Since the financial crisis of 2008, macroprudential policy has been increasingly used across economies. These measures aim at smoothing financial cycles and thereby mitigating the impact on the real economy, thereby allowing monetary policy to focus on price stability and promote growth and full employment. Macroprudential policy instruments fall into two categories, depending on their purpose, namely, to prevent procyclicality or to enhance the resilience and soundness of the financial system against shocks. The first category of instruments is used to stop bubbles from forming and smooth cycles, i.e. to force the debt-equity of economic operators on an income basis to prevent unsustainable credit bubbles, or to require dynamic loss provisioning rules. The second category of macro-prudential policy is to improve the resilience to shocks, such as capital surcharges for systemic institutions or the requirement to hold liquid assets to cope with market panics, and to make the financial system less complex. Keywords: macroprudential policy, financial stability, tools and measures, systemic risks.

scholarly journals Repercusiones monetarias de la crisis financiera de fines del siglo xx

UDA AKADEM ◽  
2018 ◽  
pp. 4-19
Author(s):  
Carlos Cordero-Díaz
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Institutions ◽  
Social Impact ◽  
Financial Regulation ◽  
Financial System ◽  
Explanatory Factors ◽  
Monetary System ◽  
The Impact ◽  
Siglo Xx

La crisis que comprometió al sistema financiero ecuatoriano a fines del siglo XX es de las más fuertes que ha enfrentado nuestro país, comparable, en cuanto a sus implicaciones macroeconómicas y reformas económicas, con la que se desarrolló en los años veinte del siglo pasado; pero más devastadora en términos de los efectos sociales que tuvo. Los testimonios de personas que perdieron sus recursos económicos, primero en el feriado bancario y luego con la liquidación de varios bancos e instituciones financieras, demuestran la magnitud de la crisis.La culminación de la crisis financiera coincide con el cambio del régimen monetario en nuestro país, cambio que también provocó pérdidas a ciudadanos y empresas, ya que el elevado tipo de cambio utilizado, provocó una significativa reducción en el valor de los ahorros. La participación del Estado ecuatoriano en el surgimiento, desarrollo y culminación de la crisis financiera fue sin duda determinante. La nueva normativa para la regulación bancaria y financiera dictada a inicios de los años noventa fue uno de los factores explicativos del origen; la entrega de recursos a las instituciones financieras, a través del Banco Central y a los depositantes a través de la AGD, permitieron que la crisis el sistema financiero se trasladara al ámbito monetario.El Ecuador inauguró el nuevo siglo con un nuevo régimen monetario y sintiendo también las repercusiones de la las crisis financiera.Palabras claves: crisis financiera, dolarización, banco central, macroeoconomíaAbstractThe crisis which compromised the Ecuadorian financial system in the late twentieth century is the strongest our country has faced, comparable in terms of its macroeconomic implications and economic reforms, with the one developed in the twenties of the last century; however, more devastating in terms of its social impact. The testimonies of people who lost their economic resources first during the bank holiday; and then, with the liquidation of several banks and financial institutions, demonstrate the magnitude of the crisis. The culmination of the financial crisis coincides with the change of the monetary regime in our country; change that also caused losses to citizens and businesses, since the high exchange rate caused a significant reduction in savings value.The participation of the Ecuadorian State in the emergence, development and culmination of the financial crisis was certainly crucial. The new rules for the banking and financial regulation enacted in the early nineties was one of the explanatory factors of the origin. The provision of resources to financial institutions by the Central Bank, and to depositors through the AGD (Deposit Guarantee Agency), enabled the crisis of the financial system to move to the monetary field.Ecuador inaugurated the new century with a new monetary system; but at the same time feeling the impact of the financial crisis. Keywords: Financial Crisis, Dollarization, Central Bank, Macro Economy.

scholarly journals How effective have measures by Central Banks been in mitigating the impact of financial crisis

2021 ◽  
Vol 4 (2) ◽  
pp. 76-87
Author(s):  
Ibrahim Rimintsiwa
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Complex Form ◽  
Central Banks ◽  
Important Lesson ◽  
Area Of Interest ◽  
Policy Measures ◽  
The Impact

During the global financial crisis, central banks around the globe implemented a series of unconventional monetary policy measures such as quantitative easing among others to avert the impact of financial crisis on financial system. There exist numerous studies on this area of interest, with each guided by a specific view of the problem and selectively chosen empirical observations with regard to the different developments. This paper reviewed literature to ascertain the effectiveness of conventional monetary policy measures and unconventional monetary measures used in mitigating the impact of the 2007/2008 global financial crisis, specifically by the major central banks including the Federal Reserve, European Central Bank and Bank of England. The study used systematic quantitative assessment technique (SQAT) to determine a high quality of papers that have been reviewed in the study. The result proved that conventional monetary policy measures are still potent to deliver their desired objectives but inadequate in times of acute crisis. Empirical evidences proved that central banks have not practically abandoned the core elements of their pre-crisis monetary policy. Through a complex form of strengthening and reassessment, they have instead complimented, extended and somewhat improved their measures to mitigate the impact of the financial crisis. An important lesson of the crisis is that there is opportunity to reinforce central banks with macro prudential supervision and regulation. This should be seen as complementary to the existing monetary policy measure in order to deliver the twin objectives of price and financial stability.

scholarly journals Evaluating the changes in the European Banking Regulation – MiFID and its possible effects on the Global Economy: A Theoretical Study

2019 ◽  
Vol 3 (4) ◽  
pp. 24-31 ◽  
Author(s):  
S.T. Islam ◽  
M.Y.H. Khan
Keyword(s):  
Financial Crisis ◽  
Financial Management ◽  
Financial Stability ◽  
Global Economy ◽  
Banking System ◽  
Banking Regulation ◽  
Regulatory Framework ◽  
Financial Investment ◽  
European Banking ◽  
The Impact

Banking regulation plays an important role in the process of ensuring financial stability, the national economy, equitable distribution of wealth and the most efficient use of financial resources. As a key regulatory tool, Banking Regulation monitors and monitors financial transactions to improve their profitability and efficiency. The author points out that the main areas of banking regulation and supervision are to control the processes of formation, operation and liquidation of commercial banks. The article focuses on the fact that the 2008 financial crisis has become a motivating driver for reforms in the banking system of Europe and America. The main purpose of the article is to assess the impact of changes in the European Banking System, in particular in the context of the study of the features of the Financial Markets Directive, on the functioning of the global economy. This paper provides a critical review of the literature from the point of view of analyzing the specificity of MiFID II in the context of its impact on the economic aspects of the country’s development. The implementation of the Directive requires significant financial investment, but these costs will pay off given the fact that MiFID II is well-designed and aimed at providing more secure protection and greater customer base stability. However, the author points out the underdevelopment and inconsistency of the regulatory framework, which is of greater concern than the cost of implementing MiFID II. Thus, the idea of the likelihood of financial and economic problems in the process of influence of banking regulation on the development of the global economy is substantiated. Notwithstanding these shortcomings, the regulatory framework for the formulation and implementation of the Directive is a significant contribution to the regulation of the financial sector. The results of the study represent scientific and practical value for academics, politicians, banking financial management of economic entities, stakeholders to better prepare and evaluate future changes as a result of reforming banking regulation. Keywords: Directives, Economic growth, Financial crisis, MiFID, Regulation.

scholarly journals Can Taxes Tame the Banks? Evidence from the European Bank Levies

2019 ◽  
Vol 129 (624) ◽  
pp. 3058-3091 ◽  
Author(s):  
Michael Devereux ◽  
Niels Johannesen ◽  
John Vella
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Total Risk ◽  
2008 Financial Crisis ◽  
Balance Sheets ◽  
Behavioural Responses ◽  
European Bank ◽  
Equity Funding ◽  
Reduce Risk ◽  
The Impact

Abstract Following the 2007–2008 financial crisis, a large number of countries introduced levies on bank borrowing intended to reduce risk in the financial sector. This article studies the behavioural responses to bank levies and finds that banks exposed to levies increased their reliance on equity funding, but at the same time increased the risk of their assets; banks shifted risk from the liability side of their balance sheets to the asset side, which mitigated the impact of government intervention. Our analysis also shows that any reduction in total risk was concentrated among banks that pose no or little threat to financial stability.

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