scholarly journals THE INTER-TIER SPREAD OF HOUSING BUBBLES: ARE LUXURY MARKETS TO BLAME?

2021 ◽  
Vol 25 (2) ◽  
pp. 115-126
Author(s):  
Shew-Huei Kuo ◽  
Ming-Te Lee ◽  
Ming-Long Lee
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Global Financial Crisis ◽  
The Other ◽  
Policy Makers ◽  
Asset Bubbles ◽  
Mass Housing ◽  
Price Bubbles ◽  
Housing Bubbles ◽  
The Global Financial Crisis

Understanding the spread of asset bubbles is pivotal to the effectiveness of risk management. This study thus estimates housing bubbles and investigates how and to what extent price bubbles spread between the tiers of luxury and mass housing in Hong Kong. The results show that price bubbles spread between housing tiers, the spreading of bubbles is not uni-directional from luxury to mass tiers, and more than 60% of bubbles come from inter-tier spreading. Moreover, bubble shocks from the luxury tier have stronger spreading influences on the movements of bubbles in the mass housing tier than the other way around during the period before the end of the global financial crisis (GFC), whereas the opposite is true for the period after GFC. The findings are important for policy makers attempting to tackle soaring housing bubbles, financial institutions seeking to managing lending risk, and housing investors wanting to time the submarkets.

Innovative Methods in Financial Risk Management

2019 ◽  
pp. 141-163
Author(s):  
Ozge Doguc
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Financial Risk ◽  
Global Financial Crisis ◽  
Financial Risk Management ◽  
Innovative Methods ◽  
Innovative Solutions ◽  
Assessment And Monitoring ◽  
New Methodologies ◽  
The Global Financial Crisis

The regulations that emerged from the global financial crisis of 2008 and fines that were imposed afterwards triggered a wave of changes in how risk is managed. Innovative methods for risk management became more important as the standards for compliance and management tightened. Institutions also invested in strengthening their risk cultures and involved their boards more closely in key risk decisions. This chapter discusses major risk factors for financial institutions and the innovative solutions that they introduced to manage risk better. Innovative solutions in risk management are not limited to advances in technology such as machine learning and data mining, but also include new regulations, better monitoring, and stricter auditing. Financial institutions improved boards' oversight of risk, created new committees for risk assessment and monitoring. and developed new methodologies for risk management.

scholarly journals Measurement of Systemic Risk in Global Financial Markets and Its Application in Forecasting Trading Decisions

2020 ◽  
Vol 12 (10) ◽  
pp. 4000 ◽  
Author(s):  
Jianxu Liu ◽  
Quanrui Song ◽  
Yang Qi ◽  
Sanzidur Rahman ◽  
Songsak Sriboonchitta
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Systemic Risk ◽  
Decision Model ◽  
Global Financial Crisis ◽  
Joint Models ◽  
Policy Makers ◽  
Trading Decisions ◽  
The Global Financial Crisis ◽  
First Time

The global financial crisis in 2008 spurred the need to study systemic risk in financial markets, which is of interest to both academics and practitioners alike. We first aimed to measure and forecast systemic risk in global financial markets and then to construct a trade decision model for investors and financial institutions to assist them in forecasting risk and potential returns based on the results of the analysis of systemic risk. The factor copula-generalized autoregressive conditional heteroskedasticity (GARCH) models and component expected shortfall (CES) were combined for the first time in this study to measure systemic risk and the contribution of individual countries to global systemic risk in global financial markets. The use of factor copula-based models enabled the estimation of joint models in stages, thereby considerably reducing computational burden. A high-dimensional dataset of daily stock market indices of 43 countries covering the period 2003 to 2019 was used to represent global financial markets. The CES portfolios developed in this study, based on the forecasting results of systemic risk, not only allow spreading of systemic risk but may also enable investors and financial institutions to make profits. The main policy implication of our study is that forecasting systemic risk of global financial markets and developing portfolios can provide valuable insights for financial institutions and policy makers to diversify portfolios and spread risk for future investments and trade.

scholarly journals Risk Management Disclosure In Malaysian Islamic Financial Institutions: Pre- And Post-Financial Crisis

2013 ◽  
Vol 29 (2) ◽  
pp. 419 ◽  
Author(s):  
Rosnadzirah Ismail ◽  
Rashidah Abdul Rahman ◽  
Normah Ahmad
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Islamic Law ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Risk Disclosure ◽  
Font Size ◽  
Islamic Financial Institutions ◽  
The Global Financial Crisis

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none; mso-hyphenate: none;" class="MsoNormal"><span style="font-family: Times New Roman;"><span lang="EN-GB" style="color: black; font-size: 10pt; mso-ansi-language: EN-GB; mso-fareast-language: AR-SA; mso-themecolor: text1;">The East Asian financial crisis in 1997 and later the global financial crisis in 2007 and 2008 had a big impact on the corporate world as many companies and financial institutions collapsed during that period.<span style="mso-spacerun: yes;"> </span>Poor governance systems and lack of transparency in reporting including lack of risk reporting and disclosure were blamed as the roots of the problem.<span style="mso-spacerun: yes;"> </span></span><span style="color: black; font-size: 10pt; mso-fareast-language: AR-SA; mso-themecolor: text1;">Conventional financial institutions have widely practiced risk management within their organization, but it is still under-developed in Islamic financial institutions due to new emerging market and unique business structures which are based on Shariah or Islamic law.<span style="mso-spacerun: yes;"> </span>Therefore, t</span><span lang="EN-GB" style="color: black; font-size: 10pt; mso-ansi-language: EN-GB; mso-fareast-language: AR-SA; mso-themecolor: text1;">his study examined the risk management disclosure by all 17 Islamic financial institutions in Malaysia from 2006 to 2009, covering the period before, during, and after the global financial crisis.<span style="mso-spacerun: yes;"> </span>A disclosure checklist consists of mandatory and voluntary items developed to measure the level of risk disclosure.<span style="mso-spacerun: yes;"> </span>The descriptive result shows the risk management disclosure among the Islamic Financial Institutions was satisfactory.<span style="mso-spacerun: yes;"> </span>Analysis for a four year period revealed that the risk disclosure has greatly improved before and after crisis indicating that Islamic Financial Institutions have taken the necessary steps to improve their disclosure.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

50 Years of Central Banking in Kenya

2021 ◽  
Keyword(s):  
Central Bank ◽  
Financial Institutions ◽  
Global Financial Crisis ◽  
Central Banking ◽  
Eastern Africa ◽  
African Region ◽  
Policy Makers ◽  
Bank Executives ◽  
The Global Financial Crisis ◽  
High Level

This book documents important milestones in the epic journey traversed by the Central Bank of Kenya over the last 50 years, putting into perspective the evolution of central banking globally and within the East African region, and contemplating future prospects and challenges. The book is timely, mainly because the global financial landscape has shifted. Central bankers have expanded their mandates, beyond the singular focus on inflation and consider economic growth as their other important objective. Financial crises have continued to disrupt the functioning of financial institutions and markets, the most devastating episodes being the global financial crisis, which broke out in 2008 and from which the global financial system has not fully recovered, and the unprecedented challenges posed by the global coronavirus pandemic. Bank regulation has moved from Basel I, to Basel II, and somehow migrated to Basel III, although some countries are still at the crossroads. The book originated from the wide-ranging discussions on central banking, from a symposium to celebrate the 50 year anniversary on 13 September 2016 in Nairobi. The participants at the symposium included current and former central bank governors from Kenya and the Eastern Africa region, high-level officials from multilateral financial institutions, policy-makers, bank executives, civil society actors, researchers and students. The book is an invaluable resource for policy-makers, practitioners, and researchers, on how monetary policy and financial practices in vogue today in Kenya have evolved through time and worked very well, but also about some pitfalls.

2011 Triennial Surveillance Review - External Study - IMF and Global Financial Stability

Policy Papers ◽  
2011 ◽  
Vol 2011 (52) ◽  
Author(s):  
Keyword(s):  
Financial Institutions ◽  
Executive Director ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Monetary Authority ◽  
Policy Makers ◽  
Crisis Prevention ◽  
Run Up ◽  
The Global Financial Crisis ◽  
The Imf

External study prepared by John Palmer, Chair, Toronto Leadership Centre, former Superintendent, Office of the Superintendent of Financial Institutions, Canada, former Deputy Managing Director Monetary Authority of Singapore, former Canadian Managing Partner of KPMG and Yoke Wang Tok, Former Senior Advisor to the IMF Executive Director representing ASEAN, Nepal, Fiji and Tonga and former Principal Economist, Monetary Authority of Singapore: This report aims to provide an independent view of how the Fund is discharging its multilateral surveillance responsibilities, in particular its contribution to global financial stability and crisis prevention, working in coordination with other relevant international groupings/institutions such as the FSB and BIS. As we emerge from the global financial crisis (GFC), the Fund has regained much of its credibility and relevance. The GFC caught many, including the IMF, by surprise. Since then, the Fund has done considerable self-analysis and taken active steps to strengthen its surveillance and policy advice and to improve traction with policy makers. The IEO report on the Fund’s performance in the run-up to the financial and economic crisis identified various shortcomings that needed to be addressed. One of its key findings was the inability of the Fund to connect-the dots, to deliver hard-hitting messages and the difficulty experienced by the Fund in thinking beyond mainstream/official views. Many of the IEO’s findings have relevance to this review.

Financial Sustainability and Infrastructure Finance

2018 ◽  
Author(s):  
Felipe Carvalho de Rezende
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Financial Sustainability ◽  
Infrastructure Finance ◽  
Strategic Role ◽  
Development Banks ◽  
The Global Financial Crisis ◽  
Capital Development

Among the lessons that can be drawn from the global financial crisis is that private financial institutions have failed to promote the capital development of the affected economies, and to dampen financial fragility. This chapter analyses the macroeconomic role that development banks can play in this context, not only providing long-term funding necessary to promote economic development, but also fostering financial stability. The chapter discusses, in particular, the need for public financial institutions to provide support for infrastructure and sustainable development projects. It concludes that development banks play a strategic role by funding infrastructure projects in particular, and outlines the lessons for enhancing their role as catalysts for mitigating risks associated with such projects.

A Discussion of Aida H. Hozic and Jacqui True’s Scandalous Economics: Gender and the Politics of Financial Crises

2017 ◽  
Vol 15 (2) ◽  
pp. 503-504
Author(s):  
Dara Z. Strolovitch
Keyword(s):  
Political Economy ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Economic Order ◽  
Macroeconomic Models ◽  
Gender And Race ◽  
Back Cover ◽  
The Global Financial Crisis

“Critical analyses of the global financial crisis of 2008 (GFC) have neglected the ways in which structural inequalities around gender and race factor into (and indeed make possible) the current economic order. Scandalous Economics breaks new ground by arguing that an explicitly gendered approach to the GFC and its ongoing effects can help us to understand both the root causes of the crisis and the failure to significantly reform financial institutions and macroeconomic models.” These words, from the blurb on the back cover of Scandalous Economics, nicely summarize the book’s topic and the general approach to it. Because the book contains contributions from a number of the top political scientists writing about the gendering of political economy, and because this topic is such an important one, we have invited a range of political scientists to comment on the book and on the broader theme of the gendering of political economy.

A Discussion of Aida H. Hozic and Jacqui True’s Scandalous Economics: Gender and the Politics of Financial Crises

2017 ◽  
Vol 15 (2) ◽  
pp. 511-512
Author(s):  
Daniel W. Drezner
Keyword(s):  
Political Economy ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Economic Order ◽  
Macroeconomic Models ◽  
Gender And Race ◽  
Back Cover ◽  
The Global Financial Crisis

“Critical analyses of the global financial crisis of 2008 (GFC) have neglected the ways in which structural inequalities around gender and race factor into (and indeed make possible) the current economic order. Scandalous Economics breaks new ground by arguing that an explicitly gendered approach to the GFC and its ongoing effects can help us to understand both the root causes of the crisis and the failure to significantly reform financial institutions and macroeconomic models.” These words, from the blurb on the back cover of Scandalous Economics, nicely summarize the book’s topic and the general approach to it. Because the book contains contributions from a number of the top political scientists writing about the gendering of political economy, and because this topic is such an important one, we have invited a range of political scientists to comment on the book and on the broader theme of the gendering of political economy.

scholarly journals Systemically important financial institutions in Latin America - a Primer

2016 ◽  
Vol 36 (2) ◽  
pp. 410-429
Author(s):  
JACOB KLEINOW ◽  
MARIO GARCIA MOLINA ◽  
ANDREAS HORSCH
Keyword(s):  
Latin America ◽  
Latin American ◽  
Financial Institutions ◽  
Global Financial Crisis ◽  
State Of The Art ◽  
Risk Exposure ◽  
Historical Experience ◽  
Systemic Risks ◽  
Depth Analysis ◽  
The Global Financial Crisis

ABSTRACT Financial institutions show a characteristic risk exposure and vulnerability, making them prone to instability. Financial systems in Latin America, however, were left largely unscathed by the global financial crisis starting in 2008. This state-of-the-art survey provides an in-depth analysis on the identification and regulation of systemically important financial institutions (SIFIs). While Latin America benefits from its rich historical experience in managing systemic risks, we find the problem of SIFIs to be still underestimated. However, there are first efforts to cope with SIFIs in science and particularly Latin American supervisors and regulators are starting to take the threat posed by SIFIs seriously.

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