scholarly journals Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis

2020 ◽  
Vol 20 (4) ◽  
pp. 431-444
Author(s):  
Senanu Kwasi Klutse
Keyword(s):  
Financial Crisis ◽  
Market Integration ◽  
Banking Sector ◽  
Level Playing Field ◽  
The European Union ◽  
2008 Financial Crisis ◽  
Playing Field ◽  
Fixed Assets ◽  
The 2008 Financial Crisis ◽  
Capital Expense

AbstractThe constitutional conception of market integration within the European Union entails creating a level playing field for competition in the consolidated banking sector. The financial crisis of 2008 brought with it the need to proceed with care as it rolled back the gains of improving competitive conditions in the financial sector. Even though a lot of studies have investigated competitive conditions prior to the crisis, the same cannot be said of periods after the crisis. Using both structural and non-structural measures of competitive conditions, this study found that the consolidated banking sector in Europe shows signs of a monopolistic competitive market structure based on its revenue and cost measures. As five countries – United Kingdom, France, Germany, Spain, Italy – control about 70 per cent of total assets in the consolidated banking sector. The capital expense to fixed assets and total assets in the Europe area were found to be negatively related to measures of profitability in the sector. They were indicating that the accumulation of assets eats into the incomes of banks in the sub-region, whereas bank exposures may be affecting bank profits.

Small States, Nationalism and Institutional Capacities: An Explanation of the Difference in Response of Ireland and Denmark to the Financial Crisis

2015 ◽  
Vol 56 (1) ◽  
pp. 143-174 ◽  
Author(s):  
John L. Campbell ◽  
John A. Hall
Keyword(s):  
Financial Crisis ◽  
Market Economy ◽  
Banking Sector ◽  
Financial Burden ◽  
State Intervention ◽  
Small States ◽  
2008 Financial Crisis ◽  
The Difference ◽  
The 2008 Financial Crisis ◽  
Liberal Market Economy

AbstractThis paper uses theories of small states (e.g. Katzenstein) and nationalism (e.g. Gellner) to explain why Denmark and Ireland responded to the 2008 financial crisis in different ways. In Denmark, a coordinated market economy with considerable corporatism and state intervention, the private sector shouldered much of the financial burden for rescuing the banking sector. In Ireland, a liberal market economy without much corporatism or state intervention, the state shouldered the burden. The difference stems in large part from the fact that Denmark had comparatively thick institutions and a strong sense of nationalism whereas Ireland did not. Lessons for the theories of small states and nationalism are explored.

scholarly journals Have EU derivative policy reforms since the 2008 financial crisis been designed effectively?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles Fergus Graham
Keyword(s):  
Financial Crisis ◽  
Heterogeneous Firms ◽  
Public Disclosure ◽  
The European Union ◽  
Policy Reforms ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Reporting Requirements ◽  
Firm Compliance ◽  
The 2008 Financial Crisis

Purpose In response to the 2008 financial crisis, the European Union (EU) comprehensively restructured its derivative regulation. A key component of this new framework is a reporting obligation for every derivative trade. As the reporting requirement does not involve public disclosure of the information, existing academic analysis on reporting regulations to-date, which focusses on public disclosure, is limited in predicting the effectiveness of the reform. This paper aims to assess whether the reform has been designed effectively based on the regulatory setup in the UK. Design/methodology/approach Framing the reporting regulation as a moral hazard problem with asymmetric information, this paper uses a game-theoretical approach to evaluate whether the new derivative reporting obligation effectively induces firm compliance. I also discuss potential extensions of the derivative reporting model, with particular emphasis on how the framework could account for heterogeneous firms and different regulatory tools. Findings Based on the theoretical analysis, this paper finds that while firms are unlikely to comply fully with derivative reporting requirements, it is possible to induce relatively high firm compliance. Although this does not mean we are immune from another financial crisis, the derivative reporting requirements should equip EU regulators to monitor a more transparent and secure derivatives market. Originality/value This paper provides a theoretical foundation for further study of post-crisis derivatives reforms. In particular, the implications of the model point to an empirical strategy to test the accuracy of the model.

Current Tendencies of the Russian Banking Sector Development

2005 ◽  
pp. 18-31
Author(s):  
A. Steinherr
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Banking Sector ◽  
Banking System ◽  
Level Playing Field ◽  
Playing Field ◽  
Enabling Environment ◽  
Current State ◽  
Banking Sector Development ◽  
Monetary Authorities

The reasons of the financial crisis of 1998 in Russia are considered in the article. It is stressed that the monetary authorities missed the chance to establish the banking sector framework in the country closer to tested Western standards. The current state of the Russian banking system is analyzed, its unresolved problems are formulated: lack of an enabling environment, difficulties with choosing the banking model, absence of a level playing field, low trust, deficiencies of regulatory framework and corporate governance. Privatization of state banks and introduction of a two-tier banking system are proposed.

Bank Structure and Liquidity Shocks: Evidence from Emerging Markets During the 2008 Financial Crisis

2017 ◽  
Vol 20 (03) ◽  
pp. 1750015 ◽  
Author(s):  
Pu Liu ◽  
Yingying Shao ◽  
Yiwen Gu
Keyword(s):  
Financial Crisis ◽  
Stock Price ◽  
Banking Sector ◽  
Foreign Bank ◽  
2008 Financial Crisis ◽  
Ample Evidence ◽  
Credit Supply ◽  
Bank Structure ◽  
The 2008 Financial Crisis ◽  
Bank Concentration

There is ample evidence on how bank structure (bank concentration, development of the banking sector, and presence of foreign banks) is related to credit supply and economic growth. However, little is known about how bank structure affects credit supply when the banking sector itself is in crisis and thus credit supply is impaired. The paucity of studies in examining the relationship between bank structure and credit supply during financial crisis is probably due to the complication that bank structure itself is significantly related to financial crisis. In this study, we avoid the endogeneity problem caused by the correlation between bank structure and financial crisis by studying the stock price performance of firms in 20 emerging countries during the 2008 financial crisis because the financial hardship in these countries was caused exogenously by the crisis originated from the U.S. We find firms that are more dependent on external financing tend to suffer greater stock price declines. However, the severity of the decline is significantly smaller for firms in countries with higher level of bank concentration, greater advancement in banking sector, and higher level of foreign bank presence. The results suggest that bank concentration, bank development, and foreign bank presence all contribute to the alleviation of liquidity crunch caused by crisis transmitted from other countries.

Part III The EU Resolution Regime, 9 Resolution in the European Union

2016 ◽  
Author(s):  
Gleeson Simon ◽  
Guynn Randall
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Legal Framework ◽  
The European Union ◽  
2008 Financial Crisis ◽  
Member States ◽  
Bank Resolution ◽  
The 2008 Financial Crisis ◽  
Investment Firm ◽  
The Eu

This chapter analyses the Bank Recovery and Resolution Directive and how it is applied to banks and investment firms alike. The BRRD establishes an improved resolution framework to be implemented among the member states of the European Union. The scope of its application is broader than most bank resolution regimes, since in the aftermath of the 2008 financial crisis, it became abundantly clear that the failure of an investment firm could do just as much damage to the financial system as the failure of a deposit taking bank. The chapter considers the legal framework governing the interaction of the EU Resolution Fund, the European Stability Fund, and the contributions of member states in resolving an EU bank.

Ireland

2017 ◽  
Author(s):  
John L. Campbell ◽  
John A. Hall
Keyword(s):  
Financial Crisis ◽  
Multinational Corporations ◽  
European Central Bank ◽  
The European Union ◽  
2008 Financial Crisis ◽  
European Central ◽  
National Question ◽  
The 2008 Financial Crisis ◽  
The Impact ◽  
Capital Injections

This chapter examines how Ireland managed the 2008 financial crisis. It first provides an overview of Ireland's transition from colony to nation-state before discussing its institutions and legacies as well as the national question that it had to deal with. It then considers Ireland's political economy, focusing on the impact of the multinational corporations on the economy, along with the origins of the 2008 financial crisis and a number of issues faced by Ireland, such as the possibility of groupthink and the lack of expertise and regulation in the country. Finally, it analyzes Ireland's response to the crisis in the form of a package of state guarantees, capital injections, efforts to clean up the banks' loan books, and a bailout deal with the Troika of the European Union, European Central Bank, and International Monetary Fund.

Mathematics without Apologies

2017 ◽  
Author(s):  
Michael Harris
Keyword(s):  
Number Theory ◽  
Financial Crisis ◽  
Pop Culture ◽  
First Century ◽  
2008 Financial Crisis ◽  
Dinner Party ◽  
Mathematical Life ◽  
Personal Experiences ◽  
The 2008 Financial Crisis ◽  
Guided Tour

What do pure mathematicians do, and why do they do it? Looking beyond the conventional answers, this book offers an eclectic panorama of the lives and values and hopes and fears of mathematicians in the twenty-first century, assembling material from a startlingly diverse assortment of scholarly, journalistic, and pop culture sources. Drawing on the author's personal experiences as well as the thoughts and opinions of mathematicians from Archimedes and Omar Khayyám to such contemporary giants as Alexander Grothendieck and Robert Langlands, the book reveals the charisma and romance of mathematics as well as its darker side. In this portrait of mathematics as a community united around a set of common intellectual, ethical, and existential challenges, the book touches on a wide variety of questions, such as: Are mathematicians to blame for the 2008 financial crisis? How can we talk about the ideas we were born too soon to understand? And how should you react if you are asked to explain number theory at a dinner party? The book takes readers on an unapologetic guided tour of the mathematical life, from the philosophy and sociology of mathematics to its reflections in film and popular music, with detours through the mathematical and mystical traditions of Russia, India, medieval Islam, the Bronx, and beyond.

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