The Turkish Banking System, Financial Crises and the IMF in the Age of Capital Account Liberalization: A Political Economy Perspective

2004 ◽  
Vol 30 ◽  
pp. 25-54 ◽  
Author(s):  
C. Emre Alper ◽  
Ziya Öniş
Keyword(s):  
Financial Crises ◽  
Banking Sector ◽  
Emerging Market ◽  
Banking System ◽  
Real Economy ◽  
Economic Crises ◽  
Public And Private ◽  
Public Banks ◽  
The One ◽  
Sustainable Economic Growth

Recent episodes of financial crises in emerging markets progressively highlighted the importance of a sound and well-functioning banking sector for macroeconomic stability and sustainable economic growth. The Asian crisis of 1997, in particular, drew attention to the fundamental role that a deficient banking system could play in terms of generating major financial crises with devastating repercussions on the real economy and with significant possibilities of contagion in an emerging market context. The recent twin economic crises experienced by Turkey in 2000 and 2001 illustrated in a rather dramatic fashion the strong correspondence between a poorly functioning and under-regulated banking system, on the one hand, and the sudden outbreak of macroeconomic crises on the other. Indeed, the Turkish experience shows that both public and private banks can contribute significantly to the outbreak of economic crises. In retrospect, it may be argued that private commercial banks played an instrumental role in the first of the twin crises experienced in November 2000, whilst, public banks emerged as the central actors in the context of the subsequent crisis of February 2001.

scholarly journals Transformation of the Banking Sector of Ukraine: Reasons and Consequences

2017 ◽  
Vol 1 (13) ◽  
pp. 33-48
Author(s):  
Myroslava Khutorna
Keyword(s):  
Economic Development ◽  
Banking Sector ◽  
Financial System ◽  
Market Concentration ◽  
The Other ◽  
Real Economy ◽  
The Real ◽  
Other Hand ◽  
The One

This paper is devoted to the consideration of the preconditions and results of the banking sector of Ukraine transforming, its influence on the sector’s productivity, stability and significance for the real economy. It’s grounded that banking sector of Ukraine has seriously weakened its potential for the economic development stimulation. On the one hand, due to the banking sector clearance from the bad and unscrupulous banks the system has become much more sensitive to the monetary instruments and its state is going to be more predictable and better controlled. But on the other hand, massive banks’ liquidations have caused the worsening of the confidence in financial system and radical increasing of the market concentration the highest degree of which is observed in the householders’ deposit market.

scholarly journals Russia’s banking sector during the pandemic

2022 ◽  
pp. 157-163
Author(s):  
E. N. Gavrilova
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Graphical Methods ◽  
Real Economy ◽  
Good Test ◽  
Russian Economy ◽  
Monetary Authorities ◽  
The Impact

Quarantine and self-isolation have become a new challenge for the Russian economy, changed many areas of our life, revealed new weaknesses in the banking system and monetary regulation of the economy, and also become a good test for the post-crisis financial system. In this article using a systematic approach to the study of information, analytical and graphical methods the dynamics of the Russian banking sector during the development of the coronavirus pandemic and the specifics of recovery from the crisis have been investigated. The innovations and improvements brought about by the pandemic have been studied. The Central Bank of Russia’s monetary policy instruments used to mitigate the impact of the pandemic on the real economy in general and on the banking sector in particular have been reviewed. The features of anti-crisis measures taken by the monetary authorities in our country have been revealed. 

scholarly journals Customer Engagement with Social Media Bank Pages with Reference to Facebook

2019 ◽  
Vol 8 (2S11) ◽  
pp. 3089-3095
Keyword(s):  
Social Media ◽  
Public Sector ◽  
Private Sector ◽  
Banking Sector ◽  
Banking System ◽  
Customer Engagement ◽  
Public And Private ◽  
Public Sector Banks ◽  
Social Media Platforms ◽  
Public And Private Sector

Indian banking sector is going through a massive transformation day by day with the advancement of Information and communication Technology and impact of digitization in the banking industry. After the core banking system, banks have moved further to reap the benefits of internet and mobile banking. In order to engage more customers anywhere and anytime without visiting the brick and mortar branches, the banks have now introduced the social media banking. Most of the people are already active in different social media platforms, so banks have grabbed that opportunity to reach people easily and provide services through social media. This paper has made an attempt to analyze the engagement of social media customers in different banks including public and private sector with reference to facebook bank page. The results show that most of the banks have presence on popular social media platforms. With respect to the engagement of customer to all facebook posts during the study period, public sector banks are posting more on their respective facebook page but the customers’ likes as well as dislikes are more for SBI, ICICI and AXIS. In case of shares and comments, SBI and PNB have more and are increasing continuously as these two banks post more on their respective facebook pages. But with respect to customer engagement per facebook post during the study period, customers are engaged more with private sector banks. And it can be said that regarding overall customer engagement people are more engaged with private sector over public sector banks.

scholarly journals Risks and stability of the banking system of the Republic of Moldova

2021 ◽  
Author(s):  
Grigore Duhlicher ◽  
Keyword(s):  
Financial Markets ◽  
Financial Crises ◽  
Banking Sector ◽  
Banking System ◽  
Republic Of Moldova ◽  
Banking Systems ◽  
The Republic ◽  
And Performance ◽  
The Stability ◽  
Financial Balance

The banking sector is constantly affected by a multitude of risks, which jeopardize its stability and performance. The multiplication, diversification and continuous intensification of banking risks emphasizes the need to define, identify, analyze and manage these phenomena, this process having a major impact on the stability of national banking systems and global financial balance. Efforts to this end must maintain the stability of financial-banking systems, characterized by a lack of major imbalances, which could lead to systemic financial crises, the inability of financial institutions to conduct financial operations, or the collapse of financial markets.

9. The Political Economy of Global Financial Crises

2016 ◽  
Author(s):  
Louis W. Pauly
Keyword(s):  
Political Economy ◽  
Financial Crises ◽  
Emerging Market ◽  
The United States ◽  
The Political ◽  
Economic Downturn ◽  
Crisis Prevention ◽  
Governance Challenges ◽  
Late Twentieth ◽  
The One

This chapter examines the political economy of global financial crises. The current world economy reflects an experiment involving the opening and integration of financial markets on the one hand, and the dispersion of political authority on the other hand, The resulting governance challenges are evident in the circumstances surrounding financial crises spilling ever more readily across national borders. In the late twentieth century, most such crises began in emerging-market countries. In 2008, however, the experiment almost failed catastrophically when policy mistakes in the United States combined with an economic downturn to spawn a global emergency. This chapter considers the changing political economy of systemic risk assessment, crisis prevention, and emergency management as the experiment continues. The timeline for the financial crisis of 2008 is presented.

scholarly journals A Comprehensive Approach for Calculating Banking Sector Risks

2020 ◽  
Vol 8 (4) ◽  
pp. 69
Author(s):  
Carmelo Salleo ◽  
Alberto Grassi ◽  
Constantinos Kyriakopoulos
Keyword(s):  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Contingent Claims ◽  
Comprehensive Approach ◽  
Real Economy ◽  
Claims Analysis ◽  
Contingent Claims Analysis ◽  
Government Sector ◽  
Risk Metric

We propose a comprehensive approach for the analysis of real economy and government sector risk transmission to the banking system and apply it in ten Euro-Area countries from 2005 to 2017. A flexible methodology is developed to model banks’ assets according to the risk-adjusted balance sheet of the counterparts. The use of distance to distress as a popular risk metric shows that Contingent Claims Analysis underestimates banks risk in stable periods and overstates it during crisis. Furthermore, the approach succeeds in detecting spillovers from households, non-financial corporations and sovereign sectors: for the countries examined the main source of instability comes from the Non-Financial Corporation sector and its increased assets volatility.

scholarly journals EVALUATING STABILITY IN DUAL BANKING SYSTEM: COMPARISON BETWEEN CONVENTIONAL AND ISLAMIC BANKS IN MALAYSIA

2019 ◽  
Vol 7 (2) ◽  
pp. 510-518
Author(s):  
Omar Alaeddin ◽  
Ahmed Khattak ◽  
Moutaz Abojeib
Keyword(s):  
Financial Crises ◽  
Banking Sector ◽  
Banking System ◽  
Central Banks ◽  
Islamic Banks ◽  
Policy Makers ◽  
Banking Stability ◽  
Widespread Belief ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

Purpose of Study: This paper aims to explore whether Islamic banks are more stable when compared with conventional banks in a dual banking system. Methodology: This research employs Pooled OLS methodology for 42 banks, including 27 conventional banks and 15 Islamic banks, for the period of 2005-2016. Results: The study suggests that Islamic banks are less stable compared to conventional banks in overall banking sector. Furthermore, it is found that big Islamic banks are less stable than big conventional banks and small Islamic banks are less stable than small conventional banks. The results disapprove of the widespread belief that Islamic banks are more stable and more resilient to adverse shocks in the financial crisis. Moreover, while investigating the shift in overall level of banking stability with respect to financial crises, regardless of bank type and bank size, it is observed that the overall banking stability is enhanced after the financial crises. This is intriguing and a sigh of relief for policy makers and regulators in the country. Implications/Applications: This research is of contribution to policy makers and central banks in the countries with highly dual banking environment and for the central banks striving to become International Islamic financial hub.

scholarly journals Emerging Trends of NPAs in Priority and Non-Priority Sector in India: A Study of Public and Private Sector Banks

2018 ◽  
Vol 5 (01) ◽  
Author(s):  
Sanjeev Kumar ◽  
Prem Prakash
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Alternative Hypothesis ◽  
Public And Private ◽  
Emerging Trends ◽  
Long Run ◽  
Private And Public ◽  
The One ◽  
Level Of Significance ◽  
Public And Private Sector

This paper analyses the growth and structure of NPAs in priority and non-priority sector lending of public vis-a-vis private sector banks from the year 2004 to 2017. The exponential growth rate, co-efficient of correlation and co-efficient of variation has been calculated. The null and alternative hypothesis with respect to NPAs has been tested with t-test at 5% level of significance. It was found that, both the priority and nonpriority sector NPAs have contributed significantly to total NPAs of the banks. However, non-priority sector NPAs contribution to total NPAs was found to be more than priority sector NPAs, both in case of public as well as private sector banks from the year 2013 onwards. The reduction in entire NPAs is difficult for the banks in the short as well as long run, keeping in view the risks attached with the priority sector lending on the one hand and the social responsibility of the banking sector on the other hand. It is recommended that, government, policy makers, private and public sector banks should make efforts for reducing sector-wise NPA

scholarly journals The European banking system before and after the crises

2014 ◽  
Vol 11 (3) ◽  
pp. 358-368 ◽  
Author(s):  
Themistokles Lazarides ◽  
Electra Pitoska
Keyword(s):  
Ownership Structure ◽  
Banking Sector ◽  
Banking System ◽  
Local Economy ◽  
Governance System ◽  
Legal Origin ◽  
Corporate Governance System ◽  
Before And After ◽  
European Banking ◽  
The One

The European banking system is not isomorphic. The differences can be traced to the differences in their local economy development, legal origin, ownership status, corporate governance system, etc. The 2008 crisis has found the banking system of Europe in a transition status. The adoption of Euro, the establishment of the European Central Bank, the Basil III initiative, the adoption of legal isomorphism as policy in E.U., and finally the crises have been creating a unique environment for the banking system. The paper will address the issue of convergence of the banking system in Europe using a set of data from 27 countries of Europe. The analysis shows that the banks haven’t changed their financial and ownership structure. Some changes in strategy are not adequate to formulate the opinion that the banking sector in Europe is different than the one before it.

scholarly journals Shadow Banking, Bank Liquidity and Monetary Policy Shocks in Emerging Countries: A Panel VAR Approach

2020 ◽  
Vol 11 (6(J)) ◽  
pp. 52-65
Author(s):  
Sheunesu Zhou
Keyword(s):  
Monetary Policy ◽  
Banking Sector ◽  
Emerging Market ◽  
Banking System ◽  
Shadow Banking ◽  
Panel Var ◽  
Shadow Banking System ◽  
Monetary Policy Shock ◽  
Positive Shock ◽  
The Impact

The study provides an analysis of the relationships between monetary policy, shadow banking and bank liquidity in emerging market economies. It is aimed at broadening knowledge on the effect of shadow banking on monetary policy transmission. Furthermore, the study seeks to analyze the impact of changes in bank liquidity on the growth of the shadow banking sector. We employ panel VAR technique to analyse the dynamics of monetary policy, shadow banking and bank liquidity using data for 15 emerging economy countries. A contractionary monetary policy shock results in a decrease in shadow banking and a decrease in bank liquidity. We also find that a positive shock in bank liquidity increases shadow bank growth and a positive shock in shadow banking also increases bank liquidity. The results point to complementarity between shadow banking and bank liquidity; and the interconnectedness between the two markets in emerging economies. We suggest continuous monitoring of shadow banking activities to minimize transmission of risk from the shadow banking system into the banking sector.

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