scholarly journals Asset securitization problems and prospects

2008 ◽  
Vol 5 (4) ◽  
pp. 403-412
Author(s):  
Arumugam Seetharaman ◽  
John Rudolph Raj ◽  
A.S. Saravanan
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Emerging Economies ◽  
Commercial Banks ◽  
Balance Sheet ◽  
Financial System ◽  
Asset Securitization ◽  
Contributory Factors ◽  
Functional Capabilities ◽  
Financing Mechanism

Applying off balance sheet financing mechanism is largely driven by its practicality, flexibility, and the most importantly it provides a platform for cheaper capital and solves many accounting related issues. Off balance sheet financing, particularly asset securitization, will continue to become the most dominant financing alternatives in view of its multi-functional capabilities in solving financing requirement and hedging needs. Asset securitization has been widely applied by the emerging economies in helping them during the economic crisis. Securitization has also been a lifesaver for banks in helping them recapitalizing during financial crisis. Securitization to a certain extent has contributed to the disintermediation of commercial banks being a major provider of capital. Despite the significant benefits and impacts, asset securitization has also its flaws or weaknesses. A flaw in structuring the deal could be one of the contributory factors of a failed deal. It could also attract excessive abuse, which consequently will be catastrophic to the financial system. Thus, proper control and regulation of off-balance sheet financing is inevitable

Editorial Introduction to the Symposium on the Global Financial Crisis

2009 ◽  
Vol 17 (2) ◽  
pp. 103-108 ◽  
Author(s):  
Sam Ashman
Keyword(s):  
United States ◽  
Political Economy ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
The United States ◽  
Editorial Introduction ◽  
The Global Financial Crisis

AbstractThe current global economic crisis is historically unprecedented in that it began when poor groups in the United States defaulted on their mortgage-payments and spread fear of 'toxic debt' through an internationalised financial system, bringing the banking system close to collapse and highlighting the very individualised nature of contemporary financial relations. The symposium explores contemporary finance and banking practices in the context of Marxist political economy seeking to develop the notion of financialisation and arguing that banks' increasing reliance on individual households as a source of profits amounts to a form of financial expropriation or additional profit generated in the sphere of circulation.

scholarly journals Comportamiento de las entidades integrantes del sistema financiero costarricense durante la crisis económica mundial de 2008. Costa Rican financial system entities behavoir during 2008 world economic crisis.

2017 ◽  
Vol 11 (3) ◽  
pp. 27
Author(s):  
Hernán Rojas Blanco
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Financial Analysis ◽  
Financial System ◽  
Costa Rican ◽  
Mitigation Strategies ◽  
Actual Duration ◽  
El Sistema ◽  
World Economic ◽  
World Economic Crisis

<p><strong>Resumen </strong></p><p>Uno de los fenómenos financieros de mayor importancia e impacto mundial de las últimas décadas fue la crisis económica mundial de 2008. Fenómeno que, a pesar de tener un origen territorialmente focalizado, tuvo un impacto global. El presente artículo analiza el comportamiento del sistema financiero costarricense en medio del fenómeno económico citado. Para explicar dicha conducta, es de suma importancia ahondar en el actuar financiero y contable de cada una de las entidades que lo componen, con el objetivo de determinar su proceder y evolución en los períodos de pre-crisis, crisis y post-crisis. El análisis financiero propuesto se desarrolló mediante una metodología basada en el análisis de datos a nivel granular (extracción, procesamiento y visualización), agrupados posteriormente mediante la generación y caracterización de clúster. La implementación de este tipo de metodología posibilitó la determinación del período real de la vigencia de los efectos de la crisis en el sistema financiero, las estrategias de mitigación implementadas contra sus efectos y comportamiento cíclico mantenido por las entidades financieras en observación.</p><p> </p><p><strong>Abstract</strong> </p><p>The 2008 world economic crisis became one of the most important and globally impacting events of the last decades. Despite having a specific territorial origin, this phenomenon had a major global impact. The present article analyzes the performance of one of the main economic components, which is the financial system, particularly the Costa Rican financial system, throughout the aforementioned economic phenomenon. To explain such performance, it is important to go into detail on the financial and accounting procedures of each of its entities, in order to determine its behaviors and evolution before, after, and mainly, throughout the duration of this financial crisis. The proposed financial analysis was developed following an approach based on data analysis at a granular level (extractions, processing, and visualization), subsequently grouped through a cluster generation and characterization. The implementation of this methodology allowed to determine the actual duration of the effects of such financial crisis, and the mitigation strategies that were implemented against its effects and cyclical behavior (with predictive characteristics) of the overall observed financial entities.</p><p><strong><br /></strong></p>

To Remember or Forget?

2021 ◽  
pp. 105-130
Author(s):  
Mats Larsson ◽  
Kristina Lilja
Keyword(s):  
Twentieth Century ◽  
Risk Management ◽  
Financial Crisis ◽  
Central Bank ◽  
Financial Crises ◽  
Commercial Banks ◽  
Financial System ◽  
Business Strategies ◽  
Financial Problems ◽  
Governmental Control

Since the early twentieth century, the Swedish financial system has experienced five major financial crises—both domestic and internationally generated. With three crises within 25 years, the use of memories from previous financial problems seems a little far-fetched. But so far this has not explicitly been analysed. However, with sources from official investigations, material from the Swedish central bank (the Riksbank) as well as memos from the Bank Inspection Board and larger commercial banks, it would be possible to reconstruct how experiences from earlier financial crises influenced banks risk management and business strategies. During the financial crisis of the 1990s the lack of memories from the 1920s and 1930s was noticed. It was said that knowledge of risk management had been reduced during 60 years of governmental control. This chapter explores this loss of memory using archives and interviews.

ANTI-CRISIS STATE INTERVENTION AND CREATED IN MEDIA IMAGES OF GLOBAL FINANCIAL CRISIS

2018 ◽  
Vol 8 (2) ◽  
pp. 177-179
Author(s):  
Dariusz Prokopowicz
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Federal Reserve ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Financial System ◽  
State Intervention ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
The Global Financial Crisis

The global financial crisis in 2008 was the reason for increasing the scale of interventionist economic policies in developed countries. The main instrument of this policy was the significant development of a mild monetary policy and interventionist measures aimed at forcing the restructuring processes of heavily indebted enterprises and stopping the decline in lending by commercial banks. As part of the pro-development activities of the state intervention, the Federal Reserve Bank applied a mild monetary policy of low interest rates and a program for activating lending and maintaining liquidity in the financial system by financing the purchase from commercial banks of the most endangered assets. A few years later, the European Central Bank applied the same activities of activation monetary policy. The functioning of the financial system will not be fully corrected as long as there will be a message in the media encouraging the banks that the global financial crisis is primarily attributable to the Federal Reserve Bank in the USA. In many para-documentary films, which, as a para-scientific explanation and education of citizens, promote the philosophy of combining deregulation of financial markets with the development of a free market, and attempts to regulate markets are trying to implement the principles of real socialism, a system quite different from that considered an ultramarine US economy.

scholarly journals Liquidity of Czech and Slovak commercial banks

2012 ◽  
Vol 60 (7) ◽  
pp. 463-476 ◽  
Author(s):  
Pavla Vodová
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Annual Reports ◽  
Lender Of Last Resort ◽  
Liquidity Crises ◽  
Lending Activity ◽  
The Impact

As liquidity problems of some banks during global financial crisis re-emphasized, liquidity is very important for functioning of financial markets and the banking sector. The aim of this paper is therefore to evaluate comprehensively the liquidity positions of Czech and Slovak commercial banks via different liquidity ratios in the period of 2001–2010 and to find out whether the strategy for liquidity management differs by the size of the bank. We used unconsolidated balance sheet data over the period from 2001 to 2010 which were obtained from annual reports of Czech and Slovak banks. The sample includes significant part of Czech and Slovak banking sector (not only by the number of banks, but also by their share on total banking assets). We have calculated five different liquidity ratios for each bank in the sample. The results showed that liquidity of Czech banks has declined during last ten years. On the contrary, liquidity of Slovak banks fluctuated only slightly during the period 2001–2008. Bank liquidity has fallen due to the financial crisis in both countries; the impact is worse for Slovak banks. Both Czech and Slovak banks have become less liquid also as a result of increase in lending activity. Czech and Slovak banks have the same strategies how to insure against liquidity crises: big banks rely on the interbank market or on a liquidity assistance of the Lender of Last Resort, small and medium sized banks hold buffer of liquid assets.

scholarly journals Development of a methodology of evaluation of financial stability of commercial banks

2014 ◽  
Vol 61 (3) ◽  
pp. 349-367 ◽  
Author(s):  
Willem Brauers ◽  
Romualdas Ginevicius ◽  
Askoldas Podviezko
Keyword(s):  
Financial Crisis ◽  
Information Asymmetry ◽  
Commercial Banks ◽  
Financial Stability ◽  
Financial System ◽  
Primary Sources ◽  
Economic Variables ◽  
Rating Agencies ◽  
Risk Return ◽  
Economic Level

The field of evaluation of financial stability of commercial banks, which emanates from persistent existence of financial crisis, induces interest of researchers for over a century. The span of prevailing methodologies stretches from over-simplified risk-return approaches to ones comprising large number of economic variables on the micro- and/or macro-economic level. Methodologies of rating agencies and current methodologies reviewed and applied by the ECB are not intended for reducing information asymmetry in the market of commercial banks. In the paper it is shown that the Lithuanian financial system is bankbased with deposits of households being its primary sources, and its stability is primarily depending on behavior of depositors. A methodology of evaluation of commercial banks with features of decreasing information asymmetry in the market of commercial banks is being developed by comparing different MCDA methods.

scholarly journals The National Bank of Romania monetary policy characteristics in addition to the current financial crisis

2012 ◽  
Author(s):  
Stefan Sambotin ◽  
Andreea Bucur
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Economic Crisis ◽  
Commercial Banks ◽  
Economic Life ◽  
Starting Point ◽  
Global Economic Crisis ◽  
National Bank ◽  
Current Financial Crisis

Considering the starting point for research the Central Bank key role in economic life, through the implementation of the monetary policy, by exercising prudential control and supervision of commercial banks, the present paper proposes an analysis of the National Bank of Romania monetary policy coordinates in the frame of the increased intensification harsh effects of the global economic crisis.

scholarly journals The development of customers’ satisfaction in the banking sector of Slovakia in the turbulent economic environment

2013 ◽  
Vol 61 (7) ◽  
pp. 1995-2003
Author(s):  
Jaroslav Belás ◽  
Lubor Homolka
Keyword(s):  
Financial Crisis ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Economic Crisis ◽  
Questionnaire Survey ◽  
Commercial Banks ◽  
Banking Sector ◽  
Successful Business ◽  
Satisfaction Factors

Satisfaction of bank’s customers presents important area of building of long-term relationships with the client, which significantly determines the financial performance of commercial banks through successful business. Satisfied customer buy bank’s products, is willing to pay also higher price for the product or service and represents some form of free advertising and considerable less effort, time and money needed for keep him, than to get a new one. This article presents current situation in the banking sector in Slovakia and quantifies changes in the area of customer satisfaction, which occurred during the financial and economic crisis. Customer satisfaction research has been conducted through a questionnaire survey. First research has been carried out on the first half of 2008 on the sample of 298 respondents, ie. the time before the financial crisis. In that time, the greatest satisfaction has been assigned to the availability of bank’s products and services, and the greatest dissatisfaction has been expressed by respondents to the prices of banking products and services. In 2012, this research has been conducted on the sample of 320 respondents. The change of satisfaction factors, respectively dissatisfied bank’s customers compared with 2008 has been investigated by standard statistical methods. Results of our research in 2012 showed satisfaction reduction of bank customers and also changes in respondents’ preferences of the perception of satisfaction factors, respectively dissatisfaction in relation to commercial banks.

scholarly journals Japan's Financial Crisis and Economic Stagnation

2004 ◽  
Vol 18 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Takeo Hoshi ◽  
Anil K Kashyap
Keyword(s):  
Financial Crisis ◽  
Life Insurance ◽  
Commercial Banks ◽  
Banking System ◽  
Financial System ◽  
Financial Sector ◽  
Insurance Companies ◽  
Financial Problems ◽  
Economic Stagnation ◽  
Loan Program

We survey the macroeconomic stagnation and financial problems in Japan. The financial sector assessment includes separate analyses of the commercial banks, the life insurance companies and the government's fiscal investment and loan program (FILP). We estimate that the Japanese taxpayer will have to pay at least another ¥100 trillion (20% of GDP) to cover financial system losses. We explain how the current dysfunctional Japanese banking system misallocates funds by keeping many insolvent firms in business. These inefficient firms crowd out potentially profitable ones and worsen macroeconomic stagnation. A sustained macroeconomic recovery requires serious restructuring aimed at stopping this cycle.

scholarly journals Community Structure and Systemic Risk of Bank Correlation Networks Based on the U.S. Financial Crisis in 2008

Algorithms ◽  
2021 ◽  
Vol 14 (6) ◽  
pp. 162
Author(s):  
Yajing Huang ◽  
Feng Chen
Keyword(s):  
Community Structure ◽  
Financial Crisis ◽  
Systemic Risk ◽  
Balance Sheet ◽  
Banking System ◽  
Financial System ◽  
Point Of View ◽  
Correlation Network ◽  
Power Law Distribution ◽  
Correlation Networks

This paper studies the community structure of the bank correlation network in the financial system and analyzes the systemic risk of the community sub-networks. Based on the balance sheet data of U.S. commercial banks from 2008, we establish a bank correlation network for each state according to the banks’ investment portfolio ratio. First, we analyze the community structure of each bank’s correlation network and verify the effectiveness of the community division from the point of view of the importance of nodes. Then, combining the data of failed banks after the 2008 financial crisis, we find that for small communities, the financial systemic risk will appear to have obvious volatility, and it is quite likely to reach an extremely high level. With the increase in the number of nodes in the community, systemic risk will tend towards a stable and low level. Furthermore, if only communities with failed banks are considered, the regression analysis shows that systemic risk and the size of the community almost follow a power law distribution trend. These results reveal the importance of supervising the banking system at the level of community sub-networks, which has certain guiding significance for the stability of the financial system.

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