scholarly journals Institutional development and bank competitive transformation in late industrializing economies: the Spanish case

2016 ◽  
Vol 18 (1) ◽  
pp. 27-62 ◽  
Author(s):  
Angela Garcia Calvo
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Historical Analysis ◽  
Institutional Development ◽  
The State ◽  
Role Of The State ◽  
Strategic Coordination ◽  
The Government ◽  
New Generation ◽  
Late Industrializing

This paper explores the contribution of national institutions to the competitive transformation of big commercial banks in late industrializing countries through the analysis of the Spanish case. The paper uses a comparative historical analysis to establish that strategic coordination between the state and large banks is a structural feature of the banking sector but may be articulated differently depending on the balance of power between states, banks and industry, the preferences of these actors, and their resources. Using evidence from Spain since the late 1970s, the paper argues that in this country, state-bank coordination was articulated as a non-hierarchical system of negotiated interactions and mutual exchanges of benefits between small groups of decision-makers at the government, the central bank, and big banks. Under the Spanish model, large banks contributed to the fulfillment of public policy objectives to develop the central bank's capacity to conduct monetary policy, strengthen supervision of the banking system, and modernize the financial sector. In exchange, big banks benefited from a favorable regulation that enabled them to restructure, consolidate the leadership of a new generation of bankers, and reach the efficiency frontier of their industry. The paper contributes to the literature of institutionalism by questioning the traditional dichotomy between market and strategic coordination. It also contributes to the literature of competitiveness by stimulating debate about the role of the state in supporting the transformation of big business.

Fixing Azerbaijani bank may dent sovereign's image

2017 ◽  
Keyword(s):  
Economic Growth ◽  
Sovereign Debt ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Content Type ◽  
The Government

Significance If two-thirds of creditors agree to the scheme by a July 13 meeting, the government will exchange IBA debt for sovereign loans but it has made it clear it does not bear responsibility for the state-owned bank's liabilities. Impacts Banking sector instability has negative implications for confidence and economic growth. The potential increases in sovereign debt appear manageable. Reducing the size of IBA will bring more competition to the banking system.

Shipbuilding and the State in Japan since the 1850s

1977 ◽  
Vol 11 (4) ◽  
pp. 601-613 ◽  
Author(s):  
Seymour Broadbridge
Keyword(s):  
Economic Development ◽  
Significant Role ◽  
Economic History ◽  
Private Enterprise ◽  
Banking System ◽  
The State ◽  
The Past ◽  
Role Of The State ◽  
The Government

In the past decade or so there have been several critical revisions of the long-accepted view of the important role of the state in Japan's economic development and programme of modernization generally. Professor Harry Oshima has attempted to demolish the argument that the Meiji governments' policies were at all economically beneficial. On the contrary, he has said, those policies retarded growth, particularly through their neglect of agriculture. Professor Hugh Patrick has cautioned us against giving the Meiji governments too much credit for the development of the banking system. Private enterprise, he has insisted, was also important. Most recently, Professor Kozo Yamamura has delivered yet another broadside against what he considers the myths of Japanese economic history. This time he criticizes the view that the government, by intervening and pioneering model plants, played a significant role in Meiji Japan's industrial dcvelopment.

scholarly journals RETHINKING THE ROLE OF STATE IN ADDRESSING FINANCIAL DIFFICULTIES OF THE BANKING SECTORS IN EASTERN EUROPE

2020 ◽  
Vol 9 (20) ◽  
Author(s):  
Svetlana Popović ◽  
Velimir Lukić
Keyword(s):  
Eastern Europe ◽  
Financial Stability ◽  
Banking Sector ◽  
Institutional Environment ◽  
Banking System ◽  
The State ◽  
Positive Role ◽  
Nonperforming Loans ◽  
Role Of The State

Financial problems in the banking sector have historically entailed significant government intervention and the allocation of significant funds for its rehabilitation. The recent financial crisis, manifested in Europe primarily as a banking crisis, reaffirmed the unwritten call of the state to intervene extensively to preserve economic and financial stability, but only for a set of old and developed EU Member States. The paper therefore analyzes the reformed role of the state in solving acute problems in transformed banking systems in Eastern Europe in the light of the post-crisis escalation of the volume of nonperforming loans. The focus of the role of the state was shifted from direct fiscal expenditures to raising the quality of the institutional environment and the rule of law, which enabled an impressive reduction in the rates of nonperforming loans. Foreign ownership in the banking sector has played a positive role because the financial backing of foreign subsidiaries has reduced potential fiscal costs on the one hand and on the other hand it contributed to maintaining confidence in the banking system.

scholarly journals The Greatest Problems of Economic Security of Ukraine

2019 ◽  
Author(s):  
Bogdan Ilychok
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Internal State ◽  
Banking System ◽  
Economic Security ◽  
The State ◽  
High Price ◽  
Existing Problems ◽  
The Government ◽  
Ordinary Citizens

In Ukraine, 27 years in a row, catastrophic processes in the field of demography are continuing, which are caused by an extremely unsatisfactory standard of living for ordinary citizens. The main reason for existing problems is the abuse of state leadership, particularly in the banking sector. As of March 2019, in Ukraine, 52 % of the volume of loans granted to the population and entrepreneurs, is $ 22.5 billion in default. Along with the plunder of the population’s funds by transferring Ukrainians’ deposits into defaulted loans, the banking mafia strips out the most economically active Ukrainians, in particular entrepreneurs, also because of the monopoly high price of a loan, which is actually twice as high as the market-determined norm. Only in the past 12 months, the banking mafia has impunity plundered Ukrainians by 89 billion hryvnia because of excessively high interest rates on loans, which exceeded the budget of the Ministry of Defense of Ukraine in 2018, which amounted to 83 billion hryvnia. The author of the study developed a draft law «On Penal Bank Reserves», the introduction of which will reduce ten times the possibilities of the banking mafia to plunder the resources of the banking system of Ukraine The leadership of the state, parliamentarians in their activities demonstrate a solid commitment and unwillingness to eliminate the schemes of robbery of the Ukrainian people. The government has created a virtual reality, according to which banks are no longer interested in lending to entrepreneurs and people, but in the purchase of Bonds of an internal state loan. As of April 2019, the government attracted and spent $ 28 billion through this scheme. The catastrophic scam is only gaining momentum and its scale will have devastating consequences for the national economy of Ukraine, in particular for the hryvnia against the US dollar and the welfare of ordinary citizens. The solution of existing problems is proposed through a radical renewal by democratic elections of the parliament of Ukraine, further eliminating the greatest problems of the economic security of the state. Key words: default loans; interest rates; banking mafia; welfare; economic security.

Reflections from the Margins: Complexities, Transitions and Developmental Challenges - The Case of the Eastern Cape Province, South Africa

2021 ◽  
Keyword(s):  
Citizen Participation ◽  
Historical Analysis ◽  
The State ◽  
Eastern Cape ◽  
The People ◽  
Role Of The State ◽  
Leadership Accountability ◽  
Multiple Challenges ◽  
Colonial Oppression

Since the dawn of colonialism in Southern Africa, the province of the Eastern Cape emerged as the cradle of African resistance against colonial oppression. A closer look at the province reveals opportunities for progress and ultimate resurgence of economic and social development, yet conflated by a myriad of challenges. This book brings together different perspectives and realities of the post-apartheid Eastern Cape to provide an in-depth exploration of the developmental dilemmas that the province faces. This book provides insightful reflections on development and its sustainability some 25 years since democracy, and specifically focuses on sociological and demographic realities in the areas of migration and its impact on families. The book further grapples with the role of the state in developing culture and heritage in the province, pointing to fundamental and multiple challenges of deprivation, unemployment and subsequent community resilience in a variety of sectors including health and education. While it provides a historical analysis of contextual issues facing the province, the book also highlights the agency of the people of the Eastern Cape in confronting challenges in leadership, accountability, citizen participation and service provision. The book will be useful for development scholars and practitioners who are interested in understanding the state of the province, and similar settings, and the degree to which it has emerged from the shadows of its colonial and apartheid legacies.

scholarly journals PERANAN NEGARA DAN HUKUM DALAM MEMBERANTAS KEMISKINAN DENGAN MEWUJUDKAN KESEJAHTERAAN UMUM

2010 ◽  
Vol 40 (3) ◽  
pp. 390
Author(s):  
Yohanes Suhardin
Keyword(s):  
Social Justice ◽  
The State ◽  
Public Welfare ◽  
The Public ◽  
Role Of The State ◽  
Strategic Role ◽  
The Creation ◽  
The Government ◽  
Legal Product

AbstrakThe role of the state in combating poverty is very strategic. Combatingpoverty means to free citizens who are poor. The strategic role given thenational ideals (read: state) is the creation of public welfare. Therefore,countries in this regard the government as the organizer of the state musthold fast to the national ideals through legal product that is loaded withsocial justice values in order to realize common prosperity. Therefore, thenature of the law is justice, then in the context of the state, the lawestablished for the creation of social justice. Law believed that social justiceas the path to the public welfare so that the Indonesian people in a relativelyshort time to eradicate poverty.

scholarly journals Too Much Technology and Too Little Regulation? The Spectacular Demise of P2P Lending in China

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ding Chen ◽  
Simon Deakin ◽  
Andrew Johnston ◽  
Boya Wang
Keyword(s):  
Banking Sector ◽  
Central Government ◽  
Focal Point ◽  
Banking System ◽  
Internal Controls ◽  
Banking Activity ◽  
P2p Lending ◽  
Fundamental Uncertainty ◽  
The Government ◽  
Specific Regulation

Abstract In this paper we trace the rapid growth and spectacular demise of online peer to peer lending in China. Drawing on a series of interviews conducted in China in 2017 and 2018, we follow the expansion of the sector from the establishment of the first major platform in 2007, through the introduction of limited regulation in 2015 in response to a series of platform failures to the final de facto closure of the whole sector by the regulator in 2019–20. However, contrary to claims that technology would reduce risk, the new platforms appear to have given rise to new risks by connecting dispersed borrowers and lenders whilst the regulator had decided to leave the sector to evolve without specific regulation. While there were hopes that P2P lending might increase flows of finance to the SMEs that are excluded from the formal banking system, ultimately too much of the activity on the P2P platforms was characterised by what we term ‘transactional ambiguity’ and ‘legal fluidity’: it occurred on the fringes of legality, often amounting to Ponzi schemes, fraud or unlicensed banking activity. In contrast to the banking sector, where their intermediation role ensures that banks are the focal point in the event of borrower default, and conventional moneylending, where moneylenders bear the risk of default, defaults and platform failures in the P2P sector distributed losses far and wide around the country, often to lenders who were not capable of bearing them. Whilst the central government did not formally stand behind the P2P sector (as it does with banks because of the systemic implications of their operations), the government could not help but become involved where P2P lending transmitted losses to lenders who were dispersed around the whole country. Ultimately, central government announced a wholesale reversal of policy that led to the sector effectively being closed down. The episode cautions against overly optimistic claims that technology can eradicate the risks of fraud and fundamental uncertainty inherent in lending, and reminds us that, without appropriate regulation and adequate internal controls, financial institutions will always operate in ways that result in instability.

scholarly journals Recreation and work in an emerging country: a combination of regulatory and motivational influences

2021 ◽  
Vol 343 ◽  
pp. 10018
Author(s):  
Hanna Shevchenko ◽  
Borys Burkynskyi ◽  
Mykola Petrushenko
Keyword(s):  
Public Space ◽  
The State ◽  
Regulatory Function ◽  
Homo Economicus ◽  
Effective Work ◽  
Role Of The State ◽  
Motivational Influences ◽  
The Government ◽  
The Individual ◽  
Vital Forces

The work can not be considered in isolation from the recreation as a process of an individual’s vital forces restoration. In emerging economies, recreational management needs an actualization at both the macro and micro levels. The purpose of the study is an analysis of the possibilities of combining the functions of regulation and motivation in the direction of increasing productivity and employment due to improved recreation. The research methodology is the Breton-Brennan-Buchanan model, within which homo economicus feels the influence from the government and adjusts the ratio of “work – leisure”. A modified view on this model is that the state is seen not only in terms of income maximization. If the collected taxes are returned to the individual, in particular in the form of qualitative recreation, then in this case the demotivation in the form of non-effective work is reduced. The paper substantiates the directions of recreational sphere activation in Ukraine, namely in relation to: increasing the motivational role of the state, along with its exclusively regulatory function; participation of enterprises in the processes of discussion and implementation of measures relevant to improving the quality of the recreational environment and infrastructure within the framework of public space renovation.

scholarly journals Ideology and Pragmatism: Discourse Factors in Infrastructure Development in Indonesia’s Jokowi-JK Era

2019 ◽  
Vol 4 (2) ◽  
pp. 297
Author(s):  
Fredick Broven Ekayanta
Keyword(s):  
The State ◽  
Infrastructure Development ◽  
Economic Policies ◽  
Development Discourse ◽  
Dominant Discourse ◽  
Ernesto Laclau ◽  
Role Of The State ◽  
The Reformation ◽  
The Government

The discussion about development discourse in a country talking about how an idea affect economic policies. In Indonesia, the development discourse continues to change depending on the ruling regime. After the reformation, the dominant discourse is a neoliberal one that minimizes the role of the state in development. During the reign of Jokowi-JK, however, the role of the state strengthened. The government plans to build a massive infrastructure of the physical economy. The government legitimized its choice of action as the implementation of the Pancasila and Trisakti ideologies. Using the theories of Ernesto Laclau and Chantal Mouffe, this article argues that the state legitimizes its policies as implementing ideology by building infrastructure development discourse, but covers only pragmatic practices that occur. The practices themselves are pragmatic because the government ignored the fate and rights of citizens affected by infrastructure development.

scholarly journals DEFIBRILLATORS OF EXPECTED MINES IN THE DEVELOPMENT OF THE BANKING SYSTEM OF UKRAINE: LESSONS OF THE CRISIS

2019 ◽  
pp. 26-36
Author(s):  
Bohdan LUTSIV
Keyword(s):  
Monetary Policy ◽  
Banking Sector ◽  
Internal State ◽  
Substantial Reduction ◽  
Banking System ◽  
Significant Deterioration ◽  
Policy Paradigm ◽  
Loan Portfolios ◽  
National Bank ◽  
The Government

Introduction. The effective functioning of the banking system determines the stability of the monetary market in the country. Stability and transparency of functioning and effective management are a guarantee of growth of deposits and attractiveness for investors. However, in recent years, the Ukrainian banking system is in a state of recession and does not fulfil the functions assigned to it. This led to the need for a so-called “purge” of the banking system and led to significant losses for both banks and for all the country’s economists. The instability that resulted from the crisis has caused even more distrust from people to banks. The main problems of the banking system of Ukraine in recent years is the curtailment of lending, a significant deterioration in the quality of loan portfolios, the reduction of its own capital and loss-making activity. Purpose. There is an analysis of the current post-crisis situation and expectations of changes in the development of the banking system of Ukraine in accordance with the new monetary policy paradigm. Results. The last economic crisis (2014–2015) is not generated by the banking system itself, but rather by economical quality. The policy of the Government and the monetary policy of the National Bank of Ukraine. Ukrainian banks are heavy and burdened with a large share of unprofitable loans, and the banking system itself is highly concentrated but not sufficiently consolidated. At the beginning of the crisis, the state of the banking sector was characterized by fictitious capitalization of banks, the involvement of the business of its shareholders, the with drawal of regulator refinancing, huge volumes of “garbage” securities in bank portfolios, etc. The National Bank of Ukraine has resorted to a “purge” of the banking system, in which the subjectivity and opacity appeared. The whole burden of reimbursing the costs associated with the withdrawal from the market of bankrupt banks took upon itself the fund for guaranteeing deposits of individuals. The influence of state banks on the general state of banking sector reform and ways to improve corporate governance in state banks is shown. The so-called defibrillators of changes which are expected in the near future in development of the banking system of Ukraine are defined. Conclusions. At present, the banking system of Ukraine demonstrates the following key trends: the end of the “bankruptcy” period; the problem of improvement of loan portfolios and optimization of operations with the bonds of an internal state loan is acute; the need for a substantial reduction of state participation in the banking system.

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