scholarly journals The Role of Central Banks and Competition Policies in the Rescue and Recapitalisation of Financial Institutions During (and in the Aftermath of) the Financial Crisis

2010 ◽  
Author(s):  
Marianne Ojo
Keyword(s):  
Financial Crisis ◽  
Financial Institutions ◽  
Central Banks

scholarly journals Developments in Monetary Policies before and after the Recent Financial Crisis and the Change in the Role of Central Banks

2014 ◽  
Author(s):  
Zekayi Kaya ◽  
Erkan Tokucu
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Stability ◽  
Policy Instruments ◽  
Central Banks ◽  
Price Stability ◽  
Lender Of Last Resort ◽  
Monetary Policies ◽  
Recent Financial Crisis

During the historical process, application of the monetary policies and the roles of the central banks have changed within the framework of the developments in the world economy, problems encountered and the economic policies as a solution to these problems. The financial crises after 1990 and the recent financial crisis as the biggest experienced one after 1930s, caused an increase in the importance of the task of providing financial stability besides price stability and in this context in the function of “lender of last resort” of the central bank. The crisis required using new policy instruments in addition to interest rate instrument which was not sufficient enough in providing financial stability and the roles of the central banks in providing financial stability changed. In this study, applications of monetary policies and the changing role of the central banks will be examined. Within this framework, traditional and non-traditional instruments will be explained and the problems that can be confronted by a central bank when providing price stability besides financial stability will be remarked.

scholarly journals Calculating the Unknown. Rationalities of Operational Risk in Financial Institutions

2010 ◽  
Vol 8 (2) ◽  
pp. 237-250
Author(s):  
Hajo Greif ◽  
Matthias Werner
Keyword(s):  
Information Technology ◽  
Risk Perception ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Low Frequency ◽  
Risk Category ◽  
Operational Risks ◽  
High Magnitude ◽  
Risk Analysis And Management

In this paper, findings of a study on the perception and policing of information-technology (ICT) related operational risks are presented, with a view on identifying some part of the role that these technologies, and the specific organisational settings in which they are embedded, may have played in the making of the 2007+ financial crisis. The study’s findings concern, firstly, biases in risk perception that turn a blind eye towards certain operational risks; secondly, competing, qualitative vs. quantitative norms and methods of risk analysis and management and their significance for the governance of financial institutions; and thirdly, the role of ICTs as organisational technologies that work both as sources and as remedies of operational risks. The use of ICTs in financial institutions, it is concluded, while not being fully acknowledged in its organisational role, caters to the calculative rationality to which the analysis, management and governance of operational and other risks are increasingly subjected. Presuming that all kinds of risk can be made calculable and computable, this calculative rationality either misses out or obscures one important risk category: low frequency/ high magnitude risks, which tend to cross the boundary between calculable risk and genuine uncertainty of knowledge.

Central banks

2015 ◽  
Author(s):  
Willem H. Buiter
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Credit Risk ◽  
Financial Institutions ◽  
Central Banks ◽  
Structural Reform ◽  
Lender Of Last Resort ◽  
Advanced Economies ◽  
Central Bankers ◽  
Clear Line

The economic and political importance of central banks has grown markedly in advanced economies since the start of the Great Financial Crisis in 2007. In this article it is argued that the preservation of the central bank’s legitimacy and independence requires that a clear line be drawn between the central bank’s provision of liquidity and the Treasury’s solvency support for systemically important financial institutions. Central banks should not be materially involved in regulation and supervision of the financial sector. All activities of the central bank that expose it to material credit risk should be guaranteed by the Treasury. In addition, central banks must increase their accountability by increasing the transparency of their lender-of-last-resort and market-maker-of-last resort activities. Central banks ought not to engage in quasi-fiscal activities. Finally, central banks should stick to their knitting and central bankers should not become participants in public debates and deeply political arguments about matters beyond their mandate and competence, including fiscal policy and structural reform.

Unfinished Business

2020 ◽  
pp. 299-334
Author(s):  
Arthur E. Wilmarth Jr.
Keyword(s):  
Financial Crisis ◽  
Financial Institutions ◽  
Central Banks ◽  
Unfinished Business ◽  
Government Officials ◽  
Top Executives ◽  
Market Participants ◽  
Shadow Banks ◽  
Systemic Crisis ◽  
The U.S

In 2009, the U.S. and other G20 nations agreed on reforms designed to improve the regulation of systemically important financial institutions and markets. However, those reforms did not change the fundamental structure of the financial system, which continues to be dominated by universal banks and large shadow banks. Those giant institutions are too big, too complex, and too opaque to be effectively managed by their executives or adequately disciplined by market participants and regulators. In addition, government officials have failed to hold top executives accountable for widespread misconduct at financial giants during and after the financial crisis. The extensive networks linking capital markets, universal banks, and shadow banks create a strong probability that serious problems arising in one financial sector will spill over into other sectors and trigger a systemic crisis. Consequently, governments face enormous pressures to rescue universal banks and large shadow banks whenever a financial disruption occurs. There are serious doubts whether many governments and central banks will possess the necessary resources in the future to provide comprehensive bailouts similar to those arranged during the last crisis. Accordingly, the next systemic financial crisis might not be contained and could potentially lead to a second Great Depression.

Do Central Banks Have a Role in Financial Inclusion?

2021 ◽  
pp. 119-137
Author(s):  
David Ferrand ◽  
Ignacio Mas
Keyword(s):  
Financial Institutions ◽  
Mobile Networks ◽  
Financial Stability ◽  
Central Banks ◽  
Financial Inclusion ◽  
Policy Makers ◽  
Bank Management ◽  
Formal Services

The chapter focuses on the role of central banks in fostering financial inclusion and specifically on the potential impact of financial inclusion on financial stability and economic growth. It examines the expansion of financial inclusion, from the reliance on informal solutions to the availability of formal services, through the engagement of policy-makers who have impacted on the way the financial sector has developed to be increasingly networked, driven by digitization, and supported by digital mobile networks. It highlights Kenya’s global success in financial inclusion; Kenya is used as a case study in central bank management, financial inclusion, and its contribution to economic development. It concludes by pointing out the risks associated with the absence of countervailing policies by financial institutions which may lead to unexpected losses to the financial system, and ultimately a banking crisis.

scholarly journals The limits of ignorance – financial literacy and the corporate responsibilization to the business of life

2015 ◽  
Vol 19 (2) ◽  
Author(s):  
Erik Højbjerg
Keyword(s):  
Financial Crisis ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Life Skills ◽  
Global Financial Crisis ◽  
Private Enterprise ◽  
Ordinary Citizen ◽  
Individual Citizen ◽  
The Individual

AbstractHow do corporations seek to construe and mobilize responsible consumers by offering products and services, the consumption of which are assumed to transform the individual’s self-relationship along proclaimed ethical and political goals? In the aftermath of the 2008 global financial crisis, increasing the financial literacy of ordinary citizen-consumers has taken a prominent position among regulators and financial institutions alike. The logic seems to be that financially capable individuals will enjoy social and political inclusion as well as an ability to exercise a stronger influence in markets. The article specifically contributes to our understanding of the governmentalization of the present by addressing how - at least in part - the corporate spread of financial literacy educational initiatives can be observed as a particular form of power at-a-distance responsibilizing the consumer. The focus is on the role of private enterprise in governmentalizing the business of life by establishing and mobilizing specific conceptual forms around which the life skills of the entrepreneurial self involves a responsibilization of the individual citizen-consumer.

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