scholarly journals Fiscal Policy in a Financial Crisis: Standard Policy versus Bank Rescue Measures

2012 ◽  
Vol 102 (3) ◽  
pp. 77-81 ◽  
Author(s):  
Robert Kollmann ◽  
Werner Roeger ◽  
Jan in't Veld
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Banking Sector ◽  
Banking System ◽  
State Aid ◽  
Government Support ◽  
Real Activity ◽  
Government Purchases ◽  
Macroeconomic Effects ◽  
Positive Effect

A key dimension of fiscal policy during the financial crisis was massive government support for the banking system. The macroeconomic effects of that support have, so far, received little attention in the literature. This paper fills this gap, using a quantitative dynamic model with a banking sector. Our results suggest that state aid for banks may have a strong positive effect on real activity. Bank state aid multipliers are in the same range as conventional fiscal spending multipliers. Support for banks has a positive effect on investment, while a rise in government purchases crowds out investment.

Bank Capital Requirements after the Financial Crisis

2019 ◽  
pp. 706-735
Author(s):  
Mark E. Van Der Weide ◽  
Jeffrey Y. Zhang
Keyword(s):  
Financial Crisis ◽  
Structural Changes ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Capital Requirements ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Stress Tests ◽  
Global Banking

Regulators responded with an array of strategies to shore up weaknesses exposed by the 2008 financial crisis. This chapter focuses on reforms to bank capital regulation. We first discuss the ways in which the post-crisis Basel III reforms recalibrated the existing framework by improving the quality of capital, increasing the quantity of capital, and improving the calculation of risk weights. We then shift to the major structural changes in the regulatory capital framework—capital buffers on top of the minimum requirements; a leverage ratio that explicitly accounts for off-balance-sheet exposures; risk-based and leverage capital surcharges on the largest banks; bail-in debt to facilitate orderly resolution; and forward-looking stress tests. We conclude with a quantitative assessment of the evolution of capital in the global banking system and in the US banking sector.

scholarly journals Navigating the financial crisis in Helvetic Waters: An analysis of the banking sector (2007-09)

2011 ◽  
Vol 1 (2) ◽  
pp. 65-78
Author(s):  
Elisabeth Paulet ◽  
Francesc Relano
Keyword(s):  
Financial Crisis ◽  
Business Model ◽  
Financial Institutions ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Characteristic Structure ◽  
International Banks ◽  
Business Approach ◽  
Domestic Banks

As has been argued throughout this paper, the different way in which banks have been affected by the crisis is closely linked to their distinct business model. Consequently, the characteristic structure of the balance sheet in big banks and ethical banks is correlated with their divergent dynamic during the crisis. While the financial turmoil has left the business approach of ethical banks unchanged, as evidenced in the striking stability of their balance sheet from 2007 to 2009, the pattern shown by big banks has substantially changed over this same period. These developments would tend to suggest the need to reform the business model of big banks. There is no clear empirical evidence that a banking system with a large number of small institutions would be any more stable than the system as it currently stands. Besides, financing certain big projects would always require the existence of large international banks. Both types of financial institutions are in fact complementary. How to regulate the banking and financial sector is thus a complex and multifaceted issue. One cannot impose the same requirements on big international-oriented banks and small domestic banks. As this paper has tried to demonstrate, both have a distinct business model.

scholarly journals BANKING SECTOR MODERNIZATION(SPANISH RECIPE)

2017 ◽  
pp. 47-54
Author(s):  
Timofey Malashenko
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
National Economy ◽  
Banking Sector ◽  
Banking System ◽  
Crisis Period

The aim of the research is to analyze transformation of the Spanish banking sector after the financial crisis of the year 2008. The author examines a hypothesis that banking system played an important role in the development of Spain’s economy. Spain’s banking sector was substantially transformed during the economic crisis, and now serves as a prerequisite for development of Spain’s national economy during post crisis period

State Aid and the Banking System in the Financial Crisis: From Bail-out to Bail-in

2016 ◽  
Author(s):  
Stefano Lucchini ◽  
Jacques Moscianese ◽  
Irene de Angelis ◽  
Fabrizio Di Benedetto
Keyword(s):  
Financial Crisis ◽  
Banking System ◽  
State Aid ◽  
Bail Out

Current Tendencies of the Russian Banking Sector Development

2005 ◽  
pp. 18-31
Author(s):  
A. Steinherr
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Banking Sector ◽  
Banking System ◽  
Level Playing Field ◽  
Playing Field ◽  
Enabling Environment ◽  
Current State ◽  
Banking Sector Development ◽  
Monetary Authorities

The reasons of the financial crisis of 1998 in Russia are considered in the article. It is stressed that the monetary authorities missed the chance to establish the banking sector framework in the country closer to tested Western standards. The current state of the Russian banking system is analyzed, its unresolved problems are formulated: lack of an enabling environment, difficulties with choosing the banking model, absence of a level playing field, low trust, deficiencies of regulatory framework and corporate governance. Privatization of state banks and introduction of a two-tier banking system are proposed.

State Aid and the Banking System in the Financial Crisis: From Bail-Out to Bail-In

2016 ◽  
Author(s):  
Stefano Lucchini ◽  
Jacques Moscianese ◽  
Irene de Angelis ◽  
Fabrizio Di Benedetto
Keyword(s):  
Financial Crisis ◽  
Banking System ◽  
State Aid ◽  
Bail Out

scholarly journals THE PECULIARITY OF THE COOPERATIVE AND MUTUAL MODEL: EVIDENCE FROM THE EUROPEAN BANKING SECTOR

2019 ◽  
Vol 07 (01) ◽  
pp. 1940001
Author(s):  
VINCENZO PACELLI ◽  
FRANCESCA PAMPURINI ◽  
STEFANIA SYLOS LABINI
Keyword(s):  
Financial Crisis ◽  
Credit Risk ◽  
Cost Efficiency ◽  
Banking Sector ◽  
Local Development ◽  
Banking System ◽  
Empirical Literature ◽  
Frontier Analysis ◽  
Mutual Banks ◽  
The Cost

The crucial role of mutual banks in promoting local development is highlighted by an extensive theoretical and empirical literature. The historical success of mutual banks derives not only from their specific business model, but also from their peculiar and distinguishing corporate governance with member ownership. According to a copious literature, these features have probably allowed mutual banks to better withstand financial crisis. This work compares the cost efficiency of European mutual banks by analyzing a sample which consists of the universe of all the banks operating in Italy, Germany, France and Spain over the period 2011–2016, by employing a stochastic approach (Stochastic Frontier Analysis-SFA) to determine the effects of the recent financial crisis on the efficiency level of this particular kind of bank. The analysis aims to point out the determinants of efficiency in order to understand if the mutual model reveals to be still attractive in the modern banking system. The main contribution of the paper to previous literature consists in comparing different impacts of financial crisis on efficiency of mutual banks in main European countries. Furthermore, the results enrich the recent debate about the cooperative and mutual banking system and its raison d’être. Our results show that the European mutual banks reveal a higher degree of efficiency with respect to commercial banks. Cost efficiency appears to be significantly and negatively related to the level of regulatory capital, the level of credit risk, the level of leverage and the cost-income ratio. On the other hand, it is significantly and positively related to the profitability of the traditional lending activity, to the level of prudence in terms of provisions against credit risk and to the amount of liquidity as a buffer against unexpected troubles.

scholarly journals PROBLEMS IN RUSSIAN FEDERATION BANKING SYSTEM IN CONNECTION WITH THE PANDEMIC AND WAYS OF THEIR SOLUTION

2020 ◽  
pp. 100-106
Author(s):  
О. Г. Ситникова ◽  
Е.А. Посная ◽  
М.И. Казнова ◽  
К.Г. Заярная
Keyword(s):  
Russian Federation ◽  
Banking Sector ◽  
Banking System ◽  
Government Support ◽  
Financial Indicators ◽  
Financial Situation ◽  
Consumer Lending ◽  
Banking Institutions ◽  
The Russian Federation

В статье рассматриваются интересные и актуальные вопросы и проблемы, связанные с функционированием банковских учреждений Российской Федерации в условиях пандемии коронавируса. Выделены основные проблемные направления, которые присутствуют в настоящее время в банковской сфере из-за «коронакризиса», обозначены последствия и предложены пути решения проблемных вопросов. Также проведен анализ финансовой ситуации в банковских учреждениях Российской Федерации. Акцент сделан на таких параметрах как капитал, платежеспособность, ликвидность, профицит. Произведено сравнение основных финансовых показателей деятельности банковских учреждений до пандемии и в настоящее время. Исследована динамика на рынке потребительского кредитования банковскими учреждениями Российской Федерации, выявлены и обоснованы основные тенденции. Проанализированы действующие направления поддержки работы банковского сектора со стороны государства. Сделаны соответствующие выводы и даны рекомендации. The article examines interesting and topical issues and problems related to the functioning of banking institutions of the Russian Federation in the context of the coronavirus pandemic. The main problem areas that are currently present in the banking sector due to the "coronacrisis" are highlighted, the consequences are indicated and ways of solving problematic issues are proposed. The analysis of the financial situation in banking institutions of the Russian Federation was also carried out. The emphasis is on such parameters as capital, solvency, liquidity, surplus. Comparison of the main financial indicators of banking institutions' activities before the pandemic and at present is made. The dynamics of the consumer lending market by banking institutions of the Russian Federation is investigated, the main trends are identified and substantiated. The current directions of government support for the banking sector are analyzed. The corresponding conclusions are made and recommendations are given.

Effects of gender quotas in Italy: a first impact assessment in the Italian banking sector

2018 ◽  
Vol 38 (7-8) ◽  
pp. 673-694 ◽  
Author(s):  
Luisa De Vita ◽  
Antonella Magliocco
Keyword(s):  
Financial Crisis ◽  
Impact Assessment ◽  
Boards Of Directors ◽  
Banking Sector ◽  
Gender Diversity ◽  
Banking System ◽  
Gender Quotas ◽  
Female Representation ◽  
Content Type ◽  
The Law

Purpose The purpose of this paper is to provide a first impact assessment of the Italian quota law in order to explore whether “gender equality by law” contributes to redefining, albeit in part, consolidating and establishing positions of power and decision making. The paper analyses these dynamics by focusing on a specific economic sector, the banking sector. The analysis strives to determine: whether binding quotas are giving rise to an apparent enforcement by building up new distortionary equilibria (such as new forms of horizontal segregation); what extent the financial crisis has impacted on the rhetoric of female representation, and whether it has pushed towards a “regenerative” organizational change aimed at achieving a more inclusive and egalitarian image. Design/methodology/approach The paper is organized as follows. Section 2 reviews the theoretical and empirical debate on gender diversity and quota impact. Section 3 reports macro and micro data on the italian system; Section 4 describes the Italian banking system and gives a first impact assessment on Italian banks of the mandatory gender quotas in Italy (the so-called “Golfo-Mosca law,” named after MPs who proposed the law); some qualitative considerations are carried out on the reactions of Italian banks to the financial crisis in terms of “bridge policies” aimed at corresponding to a higher demand of customer satisfaction and fairness. Section 5 concludes and summarizes the finding of the study. Findings The Italian banking system is not so dramatically ranked among the EU countries as in the recent past. The gender rebalance in management bodies could be considered rather satisfying. If we compare ten-year-old findings, the number of women on board of directors has tripled. But data clearly show a dichotomy due to significant differences between listed and non-listed banks. In non-listed banks, women are still relegated to an under-represented position, reaching only 13 percent on boards of directors (as against 33 percent in listed banks). The data confirm the results found in non-financial sector that women are significantly better represented on audit boards. In accordance with all previous studies, no relevant changes can be noticed on key-decision roles: no CEOs or Directors general are women in listed banks, and women are always more represented in non-executive functions. Originality/value The paper analyses the law experience in Italy as a significant case study by proving that rules such as temporary binding gender quotas (introduced by law in 2011) can be useful, but not always enough to remove blocking or distortive factors in organizational ladders.

scholarly journals The Effect and Policy Analysis of Global Financial Crisis on Nigeria Economy

2017 ◽  
Vol 3 (4) ◽  
pp. 58-64
Author(s):  
Jimoh Olatunji ◽  
He Weihang
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Focal Point ◽  
Banking System ◽  
System Stability ◽  
Implementation Policy ◽  
The Global Financial Crisis ◽  
High Level

The purpose of this study is to examine the changing trends of the global financial crisis and its effects on the Nigeria economy. It aims to study the rising success of the policy responds by the Central Bank of Nigeria, using banking sector and the economy as a focal point. Descriptive method data analysis is used to analysis the data collected for the research, the finding from the banking officials of the First Bank Plc on the research topic. The research results show that Nigeria economy has achieved a medium or even high level of implementation policy by Central Bank of Nigeria (CBN) to constraint complexity and widespread of Global Financial Crisis (GFC) in the economy, and implored adequately, stability comprehensive measures to address the future penetrated of the financial crisis. It was recommended that the immediate response of the CBN to ensure the maintenance of the banking system stability and injecting liquidity into the system and prudential supervision and regulation of the financial sector.

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