Distrust in Utopia? Public Perceptions of Corruption and Political Support in Iceland before and after the Financial Crisis of 2008

2015 ◽  
Vol 51 (4) ◽  
pp. 553-579 ◽  
Author(s):  
Gissur Ó. Erlingsson ◽  
Jonas Linde ◽  
Richard Öhrvall
Keyword(s):  
Financial Crisis ◽  
Important Determinant ◽  
Banking System ◽  
Public Perceptions ◽  
Political Support ◽  
First Century ◽  
Validity And Reliability ◽  
Transparency International ◽  
The World ◽  
Before And After

In the middle of the first decade of the twenty-first century Iceland was ranked as the least corrupt country in the world by Transparency International and enjoyed top positions in most comparative indices of governance and development. In 2008 the banking system collapsed and the country found itself in a serious financial crisis, a crisis which some observers believe was caused by clientelism and other forms of behaviour related to corruption. This article sets out to analyse how the crisis affected general political support and, in particular, the importance of perceptions of corruption in that process. Using survey data we show that political support plummeted after the crisis and that public evaluations of the extent of corruption became the most important determinant of support. The results have implications for how we ought to approach the issue of corruption, even in so-called ‘least corrupt’ settings. The findings also call into question the validity and reliability of frequently used measures of corruption and governance.

scholarly journals Changes of China’s agri-food exports to Germany caused by its accession to WTO and the 2008 financial crisis

2015 ◽  
Vol 7 (2) ◽  
pp. 262-279 ◽  
Author(s):  
Zhichao Guo ◽  
Yuanhua Feng ◽  
Thomas Gries
Keyword(s):  
Time Series ◽  
Financial Crisis ◽  
Regression Models ◽  
Structural Breaks ◽  
Global Financial Crisis ◽  
Middle Part ◽  
Change Points ◽  
Content Type ◽  
The World ◽  
Before And After

Purpose – The purpose of this paper is to investigate changes of China’s agri-food exports to Germany caused by China’s accession to WTO and the global financial crisis in a quantitative way. The paper aims to detect structural breaks and compare differences before and after the change points. Design/methodology/approach – The structural breaks detection procedures in this paper can be applied to find out two different types of change points, i.e. in the middle and at the end of one time series. Then time series and regression models are used to compare differences of trade relationship before and after the detected change points. The methods can be employed in any economic series and work well in practice. Findings – The results indicate that structural breaks in 2002 and 2009 are caused by China’s accession to WTO and the financial crisis. Time series and regression models show that the development of China’s exports to Germany in agri-food products has different features in different sub-periods. Before 1999, there is no significant relationship between China’s exports to Germany and Germany’s imports from the world. Between 2002 and 2008 the former depends on the latter very strongly, and China’s exports to Germany developed quickly and stably. It decreased, however suddenly in 2009, caused by the great reduction of Germany’s imports from the world in that year. But China’s market share in Germany still had a small gain. Analysis of two categories in agri-food trade also leads to similar conclusions. Comparing the two events we see rather different patterns even if they both indicate structural breaks in the development of China’s agri-food exports to Germany. Originality/value – This paper partly originally proposes two statistical algorithms for detecting different kinds of structural breaks in the middle part and at the end of a short-time series, respectively.

scholarly journals Post-crisis financial intermediation

10.26458/1531 ◽  
2015 ◽  
Vol 15 (3) ◽  
pp. 9
Author(s):  
Ilie MIHAI ◽  
Cristian OPREA
Keyword(s):  
Financial Crisis ◽  
Financial Intermediation ◽  
Banking System ◽  
Private Capital ◽  
Regional Economies ◽  
Loan Portfolio ◽  
The Us ◽  
The World ◽  
Recent Financial Crisis ◽  
Economic And Financial Crisis

The recent financial crisis that begun in 2007 in the US, which then swept around the world, has left deep scars on the already wrinkled face of the global economy.Some national and regional economies, which had money for expensive makeup, or created money[1], managed to blur or hide the scars left by the crisis, others are still facing difficulties in overcoming the effects of this.The rapacity of banks, their greed and risk ignorance, were the origin of the outbreak of the last major economic and financial crisis but unfortunately those who were responsible or, rather, irresponsible, paid little or nothing at all for the burden of their bad loan portfolio. This cost has been supported by the population, either directly by paying high interest and fees [Mihai I., 2007], or indirectly, through the use of public budgets to cover the losses of banks, most of which had private capital. In this context, we intend to examine the state of financial intermediation in Romania in the post-crisis period, and to primarily follow: (i) The structure and evolution of the banking system; (ii) Non-government credit situation; (iii) The level of savings; (iiii) Loan-deposit ratio; (v) The degree of financial intermediation and disintegration phenomenon etc., and to articulate some conclusions and suggestions on the matters that have been explored. 

The World Economy

2008 ◽  
Vol 204 ◽  
pp. 9-14 ◽  
Keyword(s):  
Financial Crisis ◽  
Global Economy ◽  
World Economy ◽  
Large Scale ◽  
Banking System ◽  
The Us ◽  
The World ◽  
English Speaking ◽  
English Speaking World ◽  
Mortgage Defaults

A financial crisis, rooted in US mortgage defaults, has been building for several years. Its effects have seriously damaged the prospects for the global economy, and have particularly serious consequences for the English speaking world. Unsound lending permitted by poor regulation and worsened by lax bankruptcy laws has led the US, and potentially the rest of the OECD, to the brink of a large-scale recession. The scale of the potential slowdown depends upon the scale of losses to the banking system and their impacts on the ability of the banking system to lend.

scholarly journals The paradoxical genesis of too-big-to-fail

2014 ◽  
Vol 3 (1) ◽  
pp. 28-41
Author(s):  
Thomas Umlauft
Keyword(s):  
Financial Crisis ◽  
Deposit Insurance ◽  
Banking System ◽  
Political Support ◽  
Too Big To Fail ◽  
Small Unit ◽  
The Public ◽  
The Us ◽  
Small Banks ◽  
Federal Deposit Insurance

At least since the Global Financial Crisis of 2007-2009, the problem of too-big-to-fail (TBTF) has received widespread attention. The research conducted in this context has, however, generally focused on the econometric aspect and the contribution of the TBTF doctrine to the financial crisis of 2007-2009, while the economic historical approach has been confined to tracing the doctrine to its first appearance. This paper attempts to fill this gap in the academic literature by offering an explanation for why, as opposed to how, the TBTF doctrine has developed. This paper identifies the US population’s distrust and at times hostility against the prospect of concentration of power in large financial institutions as the causal factor leading to the TBTF phenomenon. The resulting socially non-optimal regulation favoured a fragmented and fragile banking system based on small unit banks at the cost of more diversified branch banks. The Great Depression impressively highlighted the deep structural flaws of the US banking system. At the same time, however, it caused a shift in the public opinion, which had generally been opposed to deposit insurance, and thereby aligned the public interest with that of small banks, which would profit most from deposit insurance. The newly acquired public and political support enabled weak unit banks to lobby successfully against reforming the banking structure and instead for the adaption of federal deposit insurance. However, the Federal Deposit Insurance Corporation (FDIC) only addressed the symptoms of the weak banking industry but not its causes. Moreover, the strongly biased FDIC policies have generally favoured creditors at large banks, which ultimately led to the TBTF doctrine which, in turn, provided banks with a non-technical incentive to grow in size in order to gain TBTF protection. Initially aimed at preserving the US financial landscape based on small unit banks, the FDIC as the main conduit for TBTF rescues thus became the main driver for big bank corporate welfare. Deposit insurance gave rise to TBTF and, at the same time, put small banks deemed “too-small-to-safe” at a competitive disadvantage, further accelerating the trend towards increasingly large and complex banks.

scholarly journals Impact of Financial Crisis on Textile Industry in Pakistan

2012 ◽  
Vol 4 (7) ◽  
pp. 409-416 ◽  
Author(s):  
Faisal Abbas ◽  
Muti Ur Rehman . ◽  
Aslam Perviz .
Keyword(s):  
Financial Crisis ◽  
Textile Industry ◽  
World Wide ◽  
Return On Equity ◽  
Crisis Period ◽  
Earnings Per Share ◽  
The World ◽  
Before And After ◽  
Profitability Ratios ◽  
Textile Sector

The aim of study is to analyze the performance of Textile sector in Pakistan covering the pre–crisis period, post crisis period and period of crisis as well. For this purpose data were collected from overall textile sector from available sources for the period of five years. According to the most of the analysts, financial crisis 2008-09 is serious one after the world wide great depression of 1930’s. The analyses have been conducted on the basis of financial ratios (Profitability, liquidity and activity). The profitability ratios such as returns on assets were affected by financial crisis because returns on asset were decreased in crisis period as compared to cover pre and post crisis and same is the situation of return on equity that was also affected by financial crisis. The earnings per share are also reduced in financial crisis period because before and after crisis earning per share was positive but negative in crisis. The liquidity of this sector was also affected by financial crisis. Turnover of the assets also proved that assets were poorly managed by textile sector in financial crisis period. The results showed that the performance of textile sector had been better in pre-crisis and post-crisis while it was bad during crisis period.

scholarly journals Value stock and growth stock on Indonesia stock exchange after global crisis

2018 ◽  
Vol 1 (1) ◽  
pp. 8
Author(s):  
Muhammad Fadhil Rabbani ◽  
Harjum Muharam
Keyword(s):  
Financial Crisis ◽  
Stock Exchange ◽  
High Ratio ◽  
Sharpe Ratio ◽  
Value Stocks ◽  
A Value ◽  
The World ◽  
Before And After ◽  
The Difference

This study was conducted to determine whether there are differences between the stock return of value stocks and growth stock in Indonesia before and after the world financial crisis that occurred in 2008. To investigate the difference, the stocks formed into a portfolio that is based on the 2002 calculated in 2002 and 2009 when the world financial crisis has ended. The formation of the portfolio based on stocks that have gone public before 2000 and have the complete data during the study period. For the determination of the categories of stocks used Price-to-Earnings ratio, price-to-book ratio and price-to-cash flow ratio. Shares of stock that has a very high ratio will be eliminate to avoid bias that may occur if the stocks are still included. Similarly, the stocks of which are negative because they do not meet the criteria as a value stock. Then ANOVA test conducted to determine differences in returns and Sharpe ratio on the portfolio which was formed in 2002 and in 2009. Results from this studies are not found differences in returns and Sharpe ratio on both the portfolio. This indicates that the formation of the portfolio by value stocks and growth stock can not be used as a guide to get a high return.

Analyzing the topography of financial regulation

2017 ◽  
Vol 9 (4) ◽  
pp. 475-515
Author(s):  
Vighneswara Swamy
Keyword(s):  
Financial Regulation ◽  
Banking System ◽  
Content Type ◽  
Supervisory Styles ◽  
Brics Countries ◽  
The World ◽  
Bank Regulation And Supervision ◽  
Before And After ◽  
Capital Ratios ◽  
And Performance

Purpose This paper aims to assess the topography of financial regulation, supervisory styles and performance of banking systems across the world. Design/methodology/approach The author gains insights by comparing regulatory and supervisory practices and their impact on banking system performance before and after the global crisis. The study illustrates the differences in regulation/supervision among crisis, non-crisis and BRICS countries. Even as capital ratios increased, bank governance and supervision regimes were strengthened, the private sector incentives to monitor banks deteriorated. Findings The results show that the crisis-countries had weaker regulatory and supervisory frameworks than those in emerging countries during the crisis period. BRICS countries as a distinct block have demonstrated uniqueness in their regulatory/supervisory styles that are similar neither to those in the crisis-countries nor to those in the non-crisis countries. Originality/value The originality of this study lies in its unique approach to assessing the bank regulation and supervision styles around the world and their impact on banking system profitability, as it uses a robust database. Further, this study provides not only a general assessment but also a comparative analysis of the BRICS and emerging economies. Regulatory agencies around the world would greatly benefit from systematic evidence on the relationship between bank performance and regulatory/supervisory systems.

scholarly journals EFFECTS OF THE GLOBAL FINANCIAL CRISIS IN THE BANKING SYSTEM OF KOSOVO

2012 ◽  
Vol 2 (2) ◽  
pp. 30-38
Author(s):  
Myrvete Badivuku-Pantina ◽  
◽  
Anera Alishani ◽  
Keyword(s):  
Financial Crisis ◽  
Stock Prices ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Banking System ◽  
Mortgage Market ◽  
Western Balkans ◽  
The World ◽  
The Government ◽  
The Global Financial Crisis

Financial crises are phenomena that happened before and continue to happen even nowadays. There were many financial crises in the last century, starting with the Great Depression of 1929 and continuing with other financial crisis, and it was believed that people would learn from their previous experiences and would not allow the crisis to happen again. But the financial crisis of 2007, created the impression that no one wanted to learn for the real causes of their occurrence and consequences, often disastrous for countries and the globe, and as such allowed the crisis to be repeated. Effects of the 2007 financial crisis, which originally started in the USA’s mortgage market and which was quickly spread all over the world, even to this date it still continues to have effect on real economies of many states, e.g. Greece. The spread of the crisis was primarily due to globalization and commercial trades among countries. Because of the dependence of economies on one another it was created the domino effect and all the countries were affected from the crisis. As a result, the crisis seems to have revealed the disadvantages of globalization. Finances of the world were shocked and rapid fluctuations were reflected in the stock prices. Kosovo, as a new and small country in the Western Balkans is not much globalized and open which was beneficial in preventing it from being affected from the global financial crisis. Its economy has slightly felt the effect of the crisis because the banking system in Kosovo is not much open to the international financial markets as they operate mostly with their clients’ deposits. The purpose of this research is to assess the implications of the global financial crisis in the banking system of Kosovo, and also to identify the measures that the Central Bank and the Government should undertake in order to protect the economy from external implications.

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