Empirical Research on the Contagion Effect of Financial Crisis

2013 ◽  
Vol 740 ◽  
pp. 364-367
Author(s):  
Yi Xian Chai ◽  
Dan Liu ◽  
Zhi Bo Zhang ◽  
Yan Li Xu
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
International Economic Order ◽  
Economic Security ◽  
Conditional Heteroskedasticity ◽  
Contagion Effect ◽  
New Approach ◽  
International Financial Crisis ◽  
Economic Markets ◽  
The Stability

The international financial crisis has caused broad impact and serious consequences to international economic order and the economic development of every country. Therefore, making modeling research on the effect of crisis contagion between some economic markets in order to take timely measures to prevent the further spread of contagion is of great significance for maintaining a countrys economic security, and the stability of global economic and financial system. To prevent economy from being destroyed by financial crisis contagion, this paper puts forward a new testing approach on the contagion effect of financial crisis. This approach is to test the contagion effect of financial crisis by examining whether the conditional variances of different countries financial markets in crisis period are correlated through Generalized Autoregressive Conditional Heteroskedasticity model. Empirical study shows that, this new approach is effective and practical in testing the contagion effect of financial crisis.

The COVID-19 and bond spreads

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Rui Esteves ◽  
Nathan Sussman
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Emerging Economies ◽  
Explanatory Power ◽  
Financial Stress ◽  
International Financial Crisis ◽  
Bond Spreads

AbstractFinancial markets reacted with a vengeance to the COVID-19 pandemic. We argue that while the spread of the pandemic is statistically significant in explaining changes to bond spreads, it has little additional explanatory power over variables that capture financial stress. Financial markets reacted as in any international financial crisis by penalizing emerging economies exposing existing vulnerabilities. This finding highlights the need for credible, but flexible, sovereign currencies and the need to build up liquidity reserves.

scholarly journals Banking activity. Management by risk assessment and measurement

2009 ◽  
Author(s):  
Vasile Gotcu
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Markets ◽  
New Products ◽  
Financial Flows ◽  
New Approach ◽  
Banking Activity ◽  
Activity Management ◽  
The Stability

Rapid innovations in financial markets and the internationalization of the financial flows have created opportunities for developing some new products and supplying a wider product and service range to the banks. Liberalization of the financial markets , the severe competition and the diversification of the offered products expose banks to new risks and provocations. This new approach confirms the fact that the banking management generally and the risk management especially represents essential concern for the security and the stability both of each bank and the entire banking<br />system.

scholarly journals Financial Stability: Risks, Resilience, and Policy

2020 ◽  
pp. 1-4
Author(s):  
Joseph G. Haubrich
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Financial Stability ◽  
Financial System ◽  
Financial Sector ◽  
Markets And Institutions ◽  
Recent Conference ◽  
The Stability

As the COVID-19 pandemic and its economic fallout continue, policymakers keep a watchful eye on the stability of the financial system. Having learned many lessons from the financial crisis of 2007–2009, they may again turn to that crisis for insights into potential vulnerabilities emerging in the financial sector and ways to make financial markets and institutions more resilient to shocks. At a recent conference on financial stability, 12 papers and two keynotes explored this ground. This Commentary summarizes the papers’ findings and the keynotes.

scholarly journals THE RISK OF DEVELOPMENT OF LITHUANIAN DERIVATIVES MARKETS

2021 ◽  
Vol 22 (2) ◽  
pp. 346-368
Author(s):  
Kristina Garškaitė-Milvydienė
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Global Financial Crisis ◽  
Market Liquidity ◽  
The Past ◽  
Macroeconomic Fundamentals ◽  
Potential Risks ◽  
The Stability ◽  
Derivatives Markets ◽  
Tremendous Impact

Derivative financial instruments play a very important role in financial markets, but they are seen as rather contradictory and their impact on financial markets and the stability of these markets has not been comprehensively examined. Therefore, the aim of this article is to systematise the potential risks of derivatives in the context of the past global financial crisis, and the recent situation in Lithuania. In particular, growing international tension and deteriorating economic situation, make it necessary to re-analyse the recent crisis, its causes and consequences. The 2007–2008 global financial crisis revealed the challenges and risks of derivatives and showed the tremendous impact that their imprudent use may have on the stability of a financial system. The Lithuanian economy recently joined the euro, but its macroeconomic fundamentals show certain risks. Infrastructures of the derivatives market, liquidity and an adequate supervisory framework are necessary to maintain stability.

Did the financial crisis bring any changes in the monetary policy preferences of Romania?

2014 ◽  
Vol 64 (Supplement-1) ◽  
pp. 111-131 ◽  
Author(s):  
Ágnes Nagy ◽  
Annamária Benyovszki
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Financial Crisis ◽  
Financial Markets ◽  
Financial Integration ◽  
Policy Preferences ◽  
Policy Preference ◽  
Policy Goals ◽  
The Stability ◽  
Stability Indices

The turbulence in global financial markets presents a serious challenge to the stability of the monetary policy trilemma configuration. The trilemma states that a country may simultaneously choose only two of the following three policy goals: monetary policy independence, exchange rate stability, and financial integration. In order to analyse if the financial crisis brought changes in Romania’s monetary policy preference, we have constructed indexes that measure the trilemma policy goals individually in the period between 2005 and 2012. Using these indices, we have shown that there are significant differences between the means of monetary independence and exchange rate stability indices in the pre- and post-crisis periods.

scholarly journals Analysis of countering threats to the economic security of banking

2021 ◽  
Vol 8 (4) ◽  
pp. 46-50
Author(s):  
Artem Ivanov ◽  
Mihail Maksimcov
Keyword(s):  
Financial Markets ◽  
Banking System ◽  
Economic Security ◽  
The State ◽  
Institutional Factors ◽  
Banking Supervision ◽  
Depth Analysis ◽  
Legitimate Interests ◽  
The Stability

Security is an integral part of the bank's activities. The state of security is the ability and ability of a bank to reliably resist any attempts by criminal structures or unscrupulous competitors to damage its legitimate interests. Banking supervision should be based on an in-depth analysis of internal and external vulnerabilities of the banking system. This includes macroeconomic and institutional factors, as well as the stability of the financial markets in which banks operate.

scholarly journals Financial Regulation in Achieving Financial Stability: Selected EU Countries and Turkey Comparison

2014 ◽  
Author(s):  
İsmail Ciğerci ◽  
Cem Gökce
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Financial Stability ◽  
Financial Regulation ◽  
Financial Instability ◽  
Payment Systems ◽  
Eu Countries ◽  
Financial Regulations ◽  
Economic Decisions ◽  
The Stability

Financial stability means the stability in payment systems and also means resistance against shocks in financial markets and in foundations being active in such markets. Stability in financial markets usually brings along the financial system’s stable action, accordingly the allocation of sources in economy in a productive way and the management and distribution of risks in a suitable way. It is, however, a certain fact that financial instability causes important problems in economy. Such instabilities cause financial crisis and so, high costs of the financial crisis emphasizes the importance of financial stability. One of the most common methods used to prevent financial instability is the ‘’financial regulation’’. Financial regulations are the rules and limitations laid down by the public to the financial spies’ economic decisions and actions in order to increase its own social purpose function. Financial regulatory services are composed of three parts: to observe the actions of financial foundations, to discipline them, and to coordinating them. Since financial markets are of more importance in economy comparing to other markets, financial regulation is different from the other regulations as well. The purpose of the financial regulation implemented for the financial markets is to equalize the distribution of the data owned by individuals who are transacting in the financial system. In this research, the importance of financial regulations in achieving financial stability is being emphasized and selected-EU countries and Turkey will be compared.

Emerging Transnational Practices and Capabilities of Syrian Refugees in Turkey

2020 ◽  
Vol 17 (1) ◽  
pp. 125-138
Author(s):  
Zeynep Sahin Mencütek
Keyword(s):  
Legal Status ◽  
Country Of Origin ◽  
Economic Security ◽  
Economic Capital ◽  
Diaspora Studies ◽  
Cross Border ◽  
Global North ◽  
Displaced People ◽  
The Stability ◽  
Transnational Activities

Transnational activities of refugees in the Global North have been long studied, while those of the Global South, which host the majority of displaced people, have not yet received adequate scholarly attention. Drawing from refugee studies, transnationalism and diaspora studies, the article focuses on the emerging transnational practices and capabilities of displaced Syrians in Turkey. Relying on qualitative data drawn from interviews in Şanlıurfa – a border province in south-eastern Turkey that hosts half a million Syrians - the paper demonstrates the variations in the types and intensity of Syrians’ transnational activities and capabilities. It describes the low level of individual engagement of Syrians in terms of communicating with relatives and paying short visits to the hometowns as well as the intentional disassociation of young refugees from homeland politics. At the level of Syrian grassroots organisations, there have been mixed engagement initiatives emerging out of sustained cross-border processes. Syrians with higher economic capital and secured legal status have formed some economic, political, and cultural institutional channels, focusing more on empowerment and solidarity in the receiving country than on plans for advancement in the country of origin. Institutional attempts are not mature enough and can be classified as transnational capabilities, rather than actual activities that allow for applying pressure on the host and home governments. This situation can be attributed to the lack of political and economic security in the receiving country as well as no prospects for the stability in the country of origin. The study also concerns questions about the conceptual debates on the issue of refugee diaspora. Whilst there are clear signs of diaspora formation of the Syrian refugee communities, perhaps it is still premature to term Syrians in Turkey as refugee diaspora.

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