Spare Tire? Stock Markets, Banking Crises, and Economic Recoveries

CFA Digest ◽  
2017 ◽  
Vol 47 (1) ◽  
Author(s):  
Rich Wiggins
Keyword(s):  
Stock Markets ◽  
Banking Crises

scholarly journals Spare tire? Stock markets, banking crises, and economic recoveries

2016 ◽  
Vol 120 (1) ◽  
pp. 81-101 ◽  
Author(s):  
Ross Levine ◽  
Chen Lin ◽  
Wensi Xie
Keyword(s):  
Stock Markets ◽  
Banking Crises

scholarly journals Spare Tire? Stock Markets, Banking Crises, and Economic Recoveries

2015 ◽  
Author(s):  
Ross Levine ◽  
Chen Lin ◽  
Wensi Xie
Keyword(s):  
Stock Markets ◽  
Banking Crises

scholarly journals Spare Tire? Stock Markets, Banking Crises, and Economic Recoveries

2015 ◽  
Author(s):  
Ross Levine ◽  
Chen Lin ◽  
Wensi Xie
Keyword(s):  
Stock Markets ◽  
Banking Crises

Stock markets and the costs of banking crises

2014 ◽  
Vol 6 (4) ◽  
pp. 342-361 ◽  
Author(s):  
Tess DeLean ◽  
Joseph P. Joyce
Keyword(s):  
Stock Markets ◽  
Empirical Investigation ◽  
Equity Markets ◽  
Banking Crises ◽  
Regulatory Oversight ◽  
Content Type ◽  
Output Losses ◽  
The Impact ◽  
Practical Implications ◽  
Output Costs

Purpose – This paper aims to investigate whether stock markets can reduce the output costs of banking crises. The work is motivated by Alan Greenspan’s claim that capital markets serve as a financial “spare tire” in the event of a banking crisis. Design/methodology/approach – We test the impact of stock market capitalization, liquidity and turnover on the output losses of 76 banking crises in 66 countries over the period of 1975-2008. Findings – Our results indicate that stock markets can mitigate the effect of banking crises on economic activity. There is also some evidence that foreign equity holdings lower output costs. Practical implications – These results suggest that the development of equity markets will contribute to reducing the costs of banking crises. Such development, however, should be accompanied by adequate supervisory and regulatory oversight. Originality/value – Our analysis is the first direct empirical investigation of the impact of stock markets on the output costs of banking crises. This paper demonstrates that equity markets can lessen the severity of such crises.

China’s growing influence and risk in Asia–Pacific stock markets: evidence from spillover effects and market integration

2020 ◽  
Vol 22 (4) ◽  
pp. 338-361
Author(s):  
Xiaomeng Ma ◽  
Dong Zou ◽  
Chuanchao Huang ◽  
Shuliang Lv
Keyword(s):  
Stock Markets ◽  
Market Integration ◽  
Spillover Effects ◽  
Asia Pacific

Growing Russian Economy against Growing External Tension

2012 ◽  
pp. 4-32
Author(s):  
I. Borisova ◽  
B. Zamaraev ◽  
A. Kiyutsevskaya ◽  
A. Nazarova ◽  
E. Sukhanov
Keyword(s):  
Economic Growth ◽  
Stock Markets ◽  
Negative Effects ◽  
Russian Economy ◽  
Investment Demand ◽  
The World

Conditions and features of the Russian economy development in 2011 are considered in the article. Having caused unprecedented outflow of the capital abroad, rising tension and turbulence on the world financial and stock markets have not broken off recovery of the Russian economy. Crisis recession was overcome. Record-breaking low inflation, rapid credit restoration and active government adjustment neutralized negative effects of the external tension and supported economic growth, having encouraged consumer and investment demand.

Russian Banking System under Conditions of Global Crisis

2009 ◽  
pp. 4-14 ◽  
Author(s):  
G. Gref ◽  
K. Yudaeva
Keyword(s):  
Banking System ◽  
Commodity Prices ◽  
Financial Sector ◽  
Banking Crises ◽  
Economic Recovery ◽  
Balance Sheets ◽  
Current Economic Crisis ◽  
Risk Appetite ◽  
The Us ◽  
The Face

Problems in the financial sector were at the core of the current economic crisis. Therefore, economic recovery will only become sustainable after taking care of the major weaknesses in the financial sector. This conclusion is relevant both for the US and UK - the two countries where crisis has started, and for other economies which financial institutions turned out to be fragile in the face of the swings in the risk appetite. Russia is one of the countries where the crisis has revealed serious deficiency in the financial sector. Our study of 11 banking crises during the last 25-30 years shows that sustainable economic recovery and decrease in the dependence on commodity prices will be virtually impossible without cleaning of balance sheets and capitalization of the financial sector.

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