scholarly journals Systemic Illiquidity Noise-Based Measure—A Solution for Systemic Liquidity Monitoring in Frontier and Emerging Markets

Risks ◽  
2021 ◽  
Vol 9 (7) ◽  
pp. 124
Author(s):  
Ewa Dziwok ◽  
Marta A. Karaś
Keyword(s):  
Global Financial Crisis ◽  
Debt Crisis ◽  
Financial System ◽  
Risk Characteristics ◽  
European Public ◽  
Alternative Approach ◽  
Increased Risk ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Fitting Error

The paper presents an alternative approach to measuring systemic illiquidity applicable to countries with frontier and emerging financial markets, where other existing methods are not applicable. We develop a novel Systemic Illiquidity Noise (SIN)-based measure, using the Nelson–Siegel–Svensson methodology in which we utilize the curve-fitting error as an indicator of financial system illiquidity. We empirically apply our method to a set of 10 divergent Central and Eastern Europe countries—Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia—in the period of 2006–2020. The results show three periods of increased risk in the sample period: the global financial crisis, the European public debt crisis, and the COVID-19 pandemic. They also allow us to identify three divergent sets of countries with different systemic liquidity risk characteristics. The analysis also illustrates the impact of the introduction of the euro on systemic illiquidity risk. The proposed methodology may be of consequence for financial system regulators and macroprudential bodies: it allows for contemporaneous monitoring of discussed risk at a minimal cost using well-known models and easily accessible data.

scholarly journals Islamic Banking: The Firewall Against The Global Financial Crisis

2011 ◽  
Vol 28 (1) ◽  
pp. 9 ◽  
Author(s):  
Rohana Othman ◽  
Nooraslinda Abdul Aris ◽  
Rafidah Mohd Azli ◽  
Roshayani Arshad
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Free Market ◽  
Financial System ◽  
Capitalist System ◽  
Islamic Economic ◽  
The Global Financial Crisis ◽  
Financial Transactions ◽  
The Impact ◽  
Fundamental Values

The global financial crisis that devastated many of the worlds financial systems in a manner never seen before exposed the glaring weakness in risk management and interest-driven policies. The crisis brought the collapse of several iconic financial institutions once perceived to be too strong to capitulate. The crisis engulfed one economy after another from corporations to eventually bring about the collapse of governments of countries reeling from the impact of the crisis. Asset values plummeted and the crisis clearly demonstrated the fragility of the western capitalist system and the free market economy. The Islamic economic and financial system is anchored on universal honorable values, ideals and morals - honesty, credibility, transparency, co-operation and solidarity. These fundamental values uphold stability, security and safety in any financial transactions. Of paramount consideration is that the Shariah prohibits any economic and financial transactions that involve usury, lying, gambling, cheating, unsubstantiated risk or uncertainty (gharar), monopoly, exploitation, greed, unfairness and taking other peoples money unjustly. Another key aspect to the philosophy behind the Islamic financial system is money issued must be fully asset backed. It is impermissible to allow money to be traded for money except at par. Islam is not just the prohibition of riba and zakah (alms); it is a comprehensive system to fulfill societys basic necessities (food, clothing and shelter). History has demonstrated that Islam has the capacity to deliver and has succeeded in providing a viable economic system.

On Financial Contagion Through ETFs

2020 ◽  
pp. 82-101
Author(s):  
Alexia Thomaidou ◽  
Dimitris Kenourgios
Keyword(s):  
Financial Crisis ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Financial Contagion ◽  
Sovereign Debt Crisis ◽  
European Sovereign Debt Crisis ◽  
The Interest Rate ◽  
The Global Financial Crisis ◽  
The Impact

This chapter investigates the impact of the Global Financial Crisis and the European Sovereign Debt Crisis in ETFs across regions and segments. In particular, two tests are taking place, with the first one to examine if there is evidence of contagion effect and the second one to test the affection of risks in each pair of ETFs. The evidence across the stable period and the two crisis periods suggests the existence of the transmission of shocks from the Global Financial ETF to regional and sectoral ETFs. However, there is evidence that some of the ETFs remain less unaffected during both crises and some of them are immune. Moreover, the authors examine the impact of several control variables, which represent various risks, to the correlation of each pair of ETFs and the results show the influence of the interest rate risk and interbank liquidity risk during the Global Financial Crisis and the European Sovereign Debt Crisis.

scholarly journals NON-PARAMETRIC MULTIPLE CHANGE POINT ANALYSIS OF THE GLOBAL FINANCIAL CRISIS

2018 ◽  
Vol 13 (02) ◽  
pp. 1850008 ◽  
Author(s):  
DAVID E. ALLEN ◽  
MICHAEL McALEER ◽  
ROBERT J. POWELL ◽  
ABHAY K. SINGH
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Parametric Estimation ◽  
Change Points ◽  
Change Point Analysis ◽  
Financial Return ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Non Parametric

This paper presents an application of a recently developed approach by Matteson and James ( 2014 ) for the analysis of change points in a dataset, namely major financial market indices converted to financial return series. The general problem concerns the inference of a change in the distribution of a set of time-ordered variables. The approach involves the non-parametric estimation of both the number of change points and the positions at which they occur. The approach is general and does not involve assumptions about the nature of the distributions involved or the type of change beyond the assumption of the existence of the [Formula: see text] absolute moment, for some [Formula: see text]. The estimation procedure is based on hierarchical clustering and the application of both divisive and agglomerative algorithms. The method is used to evaluate the impact of the Global Financial Crisis (GFC) on the US, French, German, UK, Japanese and Chinese markets, as represented by the S&P500, CAC, DAX, FTSE All Share, Nikkei 225 and Shanghai A share Indices, respectively, from 2003 to 2013. The approach is used to explore the timing and the number of change points in the datasets corresponding to the GFC and subsequent European Debt Crisis.

scholarly journals Global Financial Crisis of Islamic and Conventional Banking in Middle East – A Case Study in Turkey

2017 ◽  
Vol 9 (8) ◽  
pp. 239
Author(s):  
Ayman Abdal-Majeed Ahmad Al-Smadi ◽  
Mahmoud Khalid Almsafir ◽  
Muzamri Bin Mukthar
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Secondary Data ◽  
Islamic Banking ◽  
The Social ◽  
The Global Financial Crisis ◽  
The Impact

The financial tools all over the world become extremely decisive in these days. The main goal of this paper is to measure then to discuss the impact of performance of conventional and Islamic banking in Turkey during the financial crisis. some variables such as profitability, liquidity, operational efficiency and business growth are used as a measuring factor to determine the performance for both financial models. The period of study is taken during the financial crisis in 1997 and during the global financial crisis in 2007. The comparison in this study is made between the performances of Islamic banking  and conventional banking in Turkey.Some secondary data had examines in this study which was drown from the annual report from one of Turkey bank since 2002 until 2013. SPSS (Statistical Package for the Social Sciences) “18.0” has been used to compare between Islamic finance model and other model. The findings of this paper shows that Islamic financial system is performing superior than conventional financial system for the period of this study. Hence, it can be concluded that the system of Islamic banking is able to sustain and compete with the conventional banking system especially during any financial crisis.

IMPACT OF EUROZONE SOVEREIGN DEBT CRISIS ON CHINA AND INDIA

2017 ◽  
Vol 62 (05) ◽  
pp. 1137-1164 ◽  
Author(s):  
PAMI DUA ◽  
DIVYA TUTEJA
Keyword(s):  
Financial Markets ◽  
Great Recession ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Eurozone Crisis ◽  
China And India ◽  
Trade And Financial Linkages ◽  
The Global Financial Crisis ◽  
The Impact

This paper analyzes the impact of the Eurozone debt crisis on China and India. Using Markov-switching analysis, we discern regimes in economic growth as well as financial markets and study the impact of the global financial crisis and Eurozone crisis on the same. We identify vulnerability and robustness factors governing the degree of exposure and resilience to the crisis for both these economies. In view of strong trade and financial linkages, the Eurozone crisis may have marred prospects of recovery in the aftermath of the recent Great Recession in both China and India. China, however, is found to be more resilient to the crisis possibly due to stronger macroeconomic fundamentals.

scholarly journals The financial system reform in China: The lesson learnt from the global financial crisis

2011 ◽  
Vol 8 (4) ◽  
pp. 56-63
Author(s):  
Jessica Hong Yang ◽  
Nada Kakabadse
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Financial System ◽  
Production Model ◽  
Financial Reform ◽  
Social Market Economy ◽  
System Reform ◽  
The Global Financial Crisis ◽  
The Impact

This paper reviews the impact of the global financial crisis on financial system reform in China. Scholars and practitioners have critically questioned the efficiencies of the Anglo-American principal-agent model of corporate governance which promotes shareholder-value maximisation. Should China continue to follow the U.K.-U.S. path in relation to financial reform? This conceptual paper provides an insightful review of the corporate governance literature, regulatory reports and news articles from the financial press. After examining the fundamental limitations of the laissez-faire philosophy that underpins the neo-liberal model of capitalism, the paper considers the risks in opening up China’s financial markets and relaxing monetary and fiscal policies. The paper outlines a critique of shareholder-capitalism in relation to the German team-production model of corporate governance, promoting a “social market economy” styled capitalism. Through such analysis, the paper explores numerous implications for China to consider in terms of developing a new and sustainable corporate governance model. China needs to follow its own financial reform through understanding its particular economy. The global financial crisis might help China rethink the nature of corporate governance, identify its weakness and assess the current reform agenda.

Liquidity, Leverage, and Regulation 10 Years After the Global Financial Crisis

2018 ◽  
Vol 10 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Tobias Adrian ◽  
John Kiff ◽  
Hyun Song Shin
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Financial System ◽  
Regulatory Reform ◽  
Market Liquidity ◽  
Current Evidence ◽  
Balance Sheets ◽  
Reform Agenda ◽  
The Global Financial Crisis ◽  
The Impact

The financial system has undergone far-reaching changes since the global financial crisis of 2008. We cast those changes in terms of shifts in the manner in which financial intermediaries manage their balance sheets. We also discuss the regulatory reform agenda, and we review the impact of regulations on market liquidity and credit availability. Current evidence suggests that the financial system has become safer, at limited unintended cost.

scholarly journals Unemployment in Greece: Econometric Evidence after the Athens 2004 Olympics and before the Global Financial Crisis of 2007–2009

2012 ◽  
Vol 2012 ◽  
pp. 1-9
Author(s):  
Stavros Rodokanakis
Keyword(s):  
Financial Crisis ◽  
Economic History ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Labour Force ◽  
Fiscal Stimulus ◽  
Econometric Evidence ◽  
The Global Financial Crisis ◽  
The Impact

This paper investigates the probability of employment in Greece and focuses on 2006, namely, well after the Athens 2004 Olympics and its fiscal stimulus and before the eruption of the global financial crisis of 2007–2009 that transformed into an economic and sovereign debt crisis with unprecedented consequences in the country's postwar economic history. Based on microdata from the Labour Force Survey, the analysis depicts the impact of gender, age, marital status, area of residence, level of education, and immigrant status on finding a job, in Greece as a whole and the two most populated Greek regions, Attica and Central Macedonia. The findings of the logit model show differences in the three areas under examination mainly among the educational variables and area of residence.

Trends in Collective Bargaining, Wage Stagnation and Income Inequality under Austerity

2020 ◽  
pp. 71-96
Author(s):  
Ian Cunningham ◽  
Philip James
Keyword(s):  
Collective Bargaining ◽  
Public Debt ◽  
Trade Unions ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Economic Policies ◽  
Factors Influencing ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Wage Outcomes

This chapter discusses the impact of the Global Financial Crisis (GFC) and austerity on collective bargaining and wage outcomes internationally. It adopts a perspective that sees the GFC and austerity as providing a convenient point from which to further consolidate neoliberalism's hold on society and simultaneously undermine one of the chief forms of resistance — trade unions and collective bargaining. The chapter begins by exploring trends in collective bargaining in the EU and North America (US and Canada) in the post-GFC period. In doing so, it identifies a common trajectory in nation-state policies that encompasses a shift towards identifying the GFC as a public debt crisis; the blaming of trade unions and their members (in particular public sector workers) for the crisis; and the introduction of reforms to collective bargaining and union security designed to reinforce deflationary austerity policies. The chapter then examines trends in wage growth and equality since 2008 and considers the factors influencing them and the extent to which they can be viewed as a product of the neoliberal-informed economic policies and reforms adopted in response to the crisis.

Welfare Reform in Greece

2017 ◽  
Author(s):  
Maria Petmesidou
Keyword(s):  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Refugee Crisis ◽  
Social Investment ◽  
New Parties ◽  
Future Direction ◽  
The Global Financial Crisis ◽  
Spending Cuts ◽  
Large Sections

Greece developed a pension-heavy, clientelist, hybrid Mediterranean welfare state with many gaps in coverage. The global financial crisis of 2008 triggered a severe sovereign debt crisis, compelling the country to accept three bailout packages with stringent conditions as to spending cuts, privatization, and openness to international competition. Severe austerity has caused a protracted recession: the economy lost more than a quarter of its GDP between 2008 and 2015. The Mediterranean refugee crisis impacted severely on the country. New parties of the extreme left (SYRIZA) and extreme right (Golden Dawn) have gained support. SYRIZA was elected on an anti-austerity platform but failed to deliver and a fourth rescue package is under negotiation. The more likely future direction consists in an ever-tighter austerity programme with the immizeration of large sections of the population. A move towards neo-Keynesian intervention and social investment seems unlikely, given the level of debt and the bailout conditions.

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