scholarly journals Subprime Attention Crisis: Advertising and the Time Bomb at the Heart of the Internet

2021 ◽  
Vol 9 (1) ◽  
pp. 19-26
Author(s):  
Jim Holmes
Keyword(s):  
New York ◽  
Financial Crisis ◽  
Business Model ◽  
Technology Policy ◽  
Global Financial Crisis ◽  
The Internet ◽  
Subprime Mortgage ◽  
Policy Researcher ◽  
The Global Financial Crisis ◽  
Mortgage Securities

In 2020, Tim Hwang, a writer, lawyer and technology policy researcher based in New York, published a short book entitled Subprime Attention Crisis: Advertising and the Time Bomb at the Heart of the Internet, which seeks to analyse the issues that are developing around the business model associated with the continued operation of the Internet, at least in its current manifestation, and the weaknesses and potential instability associated with that model. The book is of particular interest because the problems and possible next developments of the “time bomb” are set out in a plausible manner, together with some discussion on possible solutions. In particular, the author makes a credible comparison of the business model of the Internet with the subprime mortgage securities sector, the collapse of which contributed to the Global Financial Crisis in 2008.

International Financial Centres after the Global Financial Crisis and Brexit

2018 ◽  
Keyword(s):  
New York ◽  
Financial Crisis ◽  
Global Economy ◽  
Global Financial Crisis ◽  
New Technology ◽  
Interdisciplinary Approach ◽  
Important Change ◽  
Social Scientists ◽  
The Global Financial Crisis ◽  
Financial Technology

This book gathers leading economic historians, geographers, and social scientists to focus on the developments in key international financial centres following the 2008 Global Financial Crisis and to consider the likely effects of Brexit on these centres. Eleven centres in eight countries are taken into consideration: New York, London, Frankfurt, Paris, Zurich/Geneva, Hong Kong/Shanghai/Beijing, Tokyo, and Singapore. The book addresses three main issues. The first is the hierarchy of international financial centres, in particular whether Asian financial centres have taken advantage of the crisis in the West. The second is the medium-term effects of the crisis, with respect to the volume of business activity (including employment), and the level of regulation, with concerns regarding the risks of regulatory overkill. And the third is the rise of new technology, known as fintech, possibly the most important change in the decade following the crisis, with questions as to whether it will render financial centres, as we know them, unnecessary for the functioning of the global economy, and which cities are likely to emerge as hubs of new financial technology. Finally, the book discusses the likely effects of Brexit on international financial centres, in particular London, Paris, and Frankfurt. The book takes a decidedly interdisciplinary approach, with a general introduction providing a global overview from a historical perspective, and a general conclusion providing a global overview from a geographical perspective. Its focus on the implications for global financial centres is unique among books about the aftermath of the Global Financial Crisis.

Corporate Change After the Global Financial Crisis

2020 ◽  
Vol 53 (2) ◽  
pp. 245-271
Author(s):  
Ivo Arnold
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Business Model ◽  
Global Financial Crisis ◽  
Jel Classification ◽  
Long Run ◽  
Corporate Change ◽  
History Of ◽  
Using Data ◽  
The Global Financial Crisis

Abstract This paper examines the strategic response of the Dutch bank ING to the global financial crisis. Prior to the crisis, ING was a prominent global exponent of direct banking, using the so-called pure play internet (PPI) business model. PPI banking is a hybrid business model that combines features of relationship and transaction banking. Downsides of this business model are that it may lead to overexposure in securities and that it may attract savers that have an above-average sensitivity to interest rates or risk. Using data on the geographical activities of ING, the timeline of relevant events in the history of ING and strategy statements of ING management, we examine how ING has responded to the strategic challenges of the crisis. We conclude that PPI banking should be viewed more as a market penetration strategy than as a full-blown business model that is tenable in the long run. JEL Classification: G01, G21

scholarly journals Post-Crisis Changes in Global Bank Business Models

2019 ◽  
Vol 19 (295) ◽  
Author(s):  
John Caparusso ◽  
Yingyuan Chen ◽  
Peter Dattels ◽  
Rohit Goel ◽  
Paul Hiebert
Keyword(s):  
Financial Crisis ◽  
Business Model ◽  
Capital Flows ◽  
Business Models ◽  
Global Financial Crisis ◽  
Four Dimensions ◽  
International Banks ◽  
Bank Business Models ◽  
The Global Financial Crisis ◽  
Systemically Important Banks

The Global Financial Crisis unleashed changes in the operating and regulatory environments for large international banks. This paper proposes a novel taxonomy to identify and track business model evolution for the 30 Global Systemically Important Banks (G-SIBs). Drawing from banks’ reporting, it identifies strategies along four dimensions –consolidated lines of business and geographic orientation, and the funding models and legal entity structures of international operations. G-SIBs have adjusted their business models, especially by reducing market intensity. While G-SIBs have maintained international orientation, pressures on funding models and entity structures could affect the efficiency of capital flows through the bank channel.

scholarly journals German Public Banks, Financial Competition, and Crisis: Institutional Change in German Banking and Financial Vulnerability Before the Global Financial Crisis

2020 ◽  
Author(s):  
Nina Eichacker
Keyword(s):  
Financial Crisis ◽  
Small Businesses ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Financial Vulnerability ◽  
Subprime Mortgage ◽  
Savings Banks ◽  
Private Banks ◽  
Public Banks ◽  
The Global Financial Crisis

This paper asks why Landesbanks, public banks designed to provide credit to German firms in regions underserved by private banks, embraced risky asset and liability balances in the years before the Global Financial Crisis, and subsequently lost billions of dollars in write-downs after the US subprime mortgage bubble burst in 2007. It argues that the German government’s decisions to eliminate protections for Landesbanks increased competitive pressure for public banks, increased the propensity for those banks to adopt risky strategies in order to maximize profits. These actions by Landesbanks and large private banks exposed German households and firms to greater risk and financial vulnerability, and indirectly exposed European financial systems to subprime mortgage risk. It uses balance sheet analysis for different sectors of German finance to show that Landesbanks and Germany’s large private banks adopted higher risk asset and liabilities, engaged in more international activity, and shifted from lending to security acquisition while competing for profits, while Sparkassen, small public savings banks, did not adopt such risky strategies, and successfully shielded German households and small businesses from credit market spillovers following the Global Financial Crisis. The paper contributes nuance to debates about whether public banks are beneficial institutions to promote, and shows that Landesbanks’ failures stemmed from external pressures for them to increase their profits, which increased financial and economic instability in Germany and beyond.

scholarly journals THE IMPACT OF FUNDING STRUCTURE ON EU BANKING SECTOR STABILITY

2020 ◽  
pp. 143-154
Author(s):  
Lech Kujawski ◽  
Monika Liszewska ◽  
Marta Penczar
Keyword(s):  
Financial Crisis ◽  
Business Model ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Eu Countries ◽  
Macroeconomic Indicators ◽  
Banking Business ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Eu

In our paper, we analyse the impact of funding structure on banking sector stability in EU countries. Our findings show that after the global financial crisis (GFC) there are four main funding models in the EU banking sectors. We document that funding structure is an important factor influencing the banking sector stability. We report that there are also some other banking business model characteristics as well as macroeconomic indicators which have impact on banking sector risk.

scholarly journals INTERNET MARKETING TOOLS IN THE PERIOD OF THE GLOBAL FINANCIAL CRISIS: URGENCY AND EFFICIENCY

2021 ◽  
Author(s):  
Mariia Bahorka ◽  
Iryna Kadyrus ◽  
Nataliy Yurchenko
Keyword(s):  
Financial Crisis ◽  
High Efficiency ◽  
Global Financial Crisis ◽  
Marketing Research ◽  
Active Phase ◽  
Internet Marketing ◽  
The Internet ◽  
Current Trends ◽  
The Global Financial Crisis ◽  
The Impact

The article states that the impact of Internet technologies on public life has become a prerequisite for creating a new type of marketing – Internet marketing, which contains all components of marketing activities and a set of methods of marketing research on the Internet, mastering algorithms and ensuring high efficiency of advertising campaigns. Internet marketing is one of the most effective tools of today for the promotion of goods and services of companies in various areas. The authors note that under the current conditions of development of the world economy and the economy of Ukraine, in particular, there are significant changes in the activities of enterprises and approaches to doing business. The most obvious change is that most companies and people have gone online. The authors of the article emphasize that one of the significant and important factors influencing the development of enterprises in the context of the Global Financial Crisis 2020, which is currently in an active phase, is the effective use of the Internet in their activities. Taking into account the analysis of modern scientific research, the authors noted that they did not substantiate the tools of Internet marketing, which are relevant in the context of the Global Financial Crisis 2020. The authors analyzed the total advertising market in Ukraine and concluded that the Internet segment is growing faster than other types of advertising. Taking into account the current trends in the development of online communications, the authors, based on a study of modern publications, summarize the current tools of Internet marketing during the Global Financial Crisis and systematized current trends in Internet marketing. The authors emphasize that during the Global Financial Crisis there are various tools of marketing communications, but the relevance and momentum are gaining online tools, the effectiveness of which in a pandemic exceeded the effectiveness of traditional marketing tools. The authors believe that the generalization of existing tools of Internet marketing and the selection of many of the most relevant and effective, will allow companies to quickly navigate and choose those that will benefit in a particular area of business.

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