scholarly journals Bank size as a source of competitive advantage of Chinese global systemically important banks

2020 ◽  
pp. 30-46
Author(s):  
Magdalena Markiewicz
Keyword(s):  
Financial Institutions ◽  
System Stability ◽  
Too Big To Fail ◽  
Market Segments ◽  
Fannie Mae ◽  
Lehman Brothers ◽  
The World ◽  
The Stability ◽  
Freddie Mac ◽  
Systemically Important Banks

During the financial crisis in 2007–2009 banks all around the world suffered liquidity problems and were a subject to a system stability testing. The problems of large financial institutions, such as Bear Sterns, Fannie Mae or Freddie Mac, drew attention to the issue of financial liquidity more than ever in 2007. After the collapse of Lehman Brothers a question was raised about the stability and system security of the largest institutions in the financial system. Credit institutions recognised as systemically important, are distinguished by the enormous size of assets, which creates the risk of being too big to fail or too important to fail. The extent of links with other institutions on the market through various market segments makes them also too connected to fail.

Bailouts Without End

2020 ◽  
pp. 265-298
Author(s):  
Arthur E. Wilmarth Jr.
Keyword(s):  
Great Recession ◽  
Small Businesses ◽  
Too Big To Fail ◽  
Troubled Asset Relief Program ◽  
The Great Recession ◽  
Fannie Mae ◽  
Lehman Brothers ◽  
The World ◽  
Relief Program ◽  
Freddie Mac

The Fed’s rescue of Bear Stearns and the Treasury Department’s nationalization of Fannie Mae and Freddie Mac in 2008 provoked widespread criticism. Consequently, the Fed and Treasury were very reluctant to approve further bailouts, and they allowed Lehman Brothers to fail in September 2008. Lehman’s collapse triggered a global panic and a meltdown of financial markets around the world. The Fed and Treasury quickly arranged a bailout of AIG, and Congress approved a $700 billion financial rescue bill. Treasury established the Troubled Asset Relief Program, which injected capital into large universal banks, while the Fed provided trillions of dollars of emergency loans and the FDIC established new guarantee programs for bank debts and deposits. In February 2009, federal regulators pledged to provide any further capital that the nineteen largest U.S. banks needed to survive, thereby cementing the “too big to fail” status of U.S. megabanks. The U.K. and other European nations arranged similar bailouts for their universal banks. Meanwhile, thousands of small banks and small businesses failed, millions of people lost their jobs, and millions of families lost their homes during the Great Recession.

The threat of outflow of individual deposits in systemically important banks of the Russian Federation: A retrospective analysis and regulatory outlook

2021 ◽  
Vol 27 (1) ◽  
pp. 4-21
Author(s):  
Yuliya S. EVLAKHOVA
Keyword(s):  
Statistical Analysis ◽  
Retrospective Analysis ◽  
Russian Federation ◽  
Too Big To Fail ◽  
Bank Run ◽  
Business Operations ◽  
The Russian Federation ◽  
The Stability ◽  
High Threat ◽  
Systemically Important Banks

Subject. The article focuses on the dynamics of individual deposits in the Russian systemically important banks as a factor of the stability of available resources. Objectives. I assess the threat of individual deposits outflowing from the Russian too-big-to-fail banks within 2015–2019. I correspondingly outline recommendations for mitigating the threat in the future. Methods. The study is based on methods of logic, comparative and statistical analysis. I devised and applied our own algorithm for classifying too-big-to-fail banks by threat of individual deposit outflow and its level. Results. Systemically important banks were found to have not been exposed to the high threat of bank run within 2015–2019. Three fundamental credit institutions were constantly exposed to the threat of individual deposit outflow. One of eleven systemic banks continuously demonstrated the low threat of individual deposit outflow. The rest of the banks were migrating among the low-threat and high-threat classes. Conclusions and Relevance. The Russian systemically important banks can refer to our findings to articulate their deposit policy, set and use digital accounts of retail customers. The Bank of Russian can rely on the analysis of the threat of individual deposit outflow and other data on financial and business operations of the banks and its sustainability as part of bank oversight procedures.

scholarly journals Changes In The Financial System Stability Of Asean Founder Countries Due To Covid-19

2021 ◽  
Vol 2 (5) ◽  
pp. 1635-1643
Author(s):  
Rusiadi ◽  
Anwar Sanusi ◽  
Ade Novalina ◽  
Milenia M Tafonao ◽  
Audre Aprillia
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Financial System ◽  
Secondary Data ◽  
T Test ◽  
System Stability ◽  
Test Model ◽  
Paired Sample ◽  
The World ◽  
The Stability

The threat of the spread of coronavirus to economic growth and inflation in countries in the world will also seep into the global and domestic macrofinancial sector. This research was conducted to analyze how the level of change in the stability of the financial system of ASEAN Founders (ASEFO) with the emergence of the covid 19 pandemic. This study used secondary data (time series) in asefo countries. The model used is a different test model paired sample t-test. The results of the analysis showed that the Covid 19 pandemic had a significant effect on the stability of the financial system with the ASEFO State NPL indicator.

El estado de bienestar y la crisis financiera internacional

1970 ◽  
Vol 1 (1) ◽  
pp. 16-17
Author(s):  
Andrés Escalante
Keyword(s):  
Fannie Mae ◽  
Lehman Brothers ◽  
Freddie Mac

La crisis financiera internacional que originó la actual contracción de la actividad económica mundial--que por su magnitud y tiempo ha sido bautizada por historiadores económicos como la Gran Recesión--empezó en los Estados Unidos en la década pasada con la explosión de la burbuja inmobiliaria, que consecuentemente le puso el fin al boom del sector vivienda; precipitó el colapso de instituciones públicas y privadas, como Freddie Mac, Fannie Mae y Lehman Brothers en 2008; hizo del otorgamiento de créditos hipotecarios una actividad financiera disfuncional; y generó cuantiosas pérdidas de riqueza, de las que todavía no nos recuperamos.

America's Political Crisis: The Unsustainable State in a Time of Unraveling

2009 ◽  
Vol 42 (02) ◽  
pp. 277-285 ◽  
Author(s):  
Lawrence Jacobs ◽  
Desmond King
Keyword(s):  
Political Crisis ◽  
Federal Reserve Bank ◽  
International Group ◽  
The Great Depression ◽  
Fannie Mae ◽  
Reserve Bank ◽  
Lehman Brothers ◽  
Freddie Mac ◽  
American Economy ◽  
The U.S

The American economy and financial system is experiencing upheaval on a scale not seen since the Great Depression of the 1930s. A number of the largest and most established banks and investment firms have declared bankruptcy (including Bear Stearns and Lehman Brothers) or been taken over at fire-sale rates (as was the case, for example, with Merrill Lynch). In the fall of 2008, Congress and the U.S. Treasury along with the Federal Reserve Bank committed more than eight trillion dollars in payments, loans, and guarantees of various sorts to prop up financial institutions (including the semi-governmental mortgage entities, Fannie Mae and Freddie Mac) as well as the country's largest insurer, American International Group (AIG). The speed, number, and scope of these interventions lack historical precedent.

ASPEK ETIK DAN SISTEMIK DALAM EKONOMI DAN BISNIS ISLAM

ALQALAM ◽  
2014 ◽  
Vol 31 (1) ◽  
pp. 187
Author(s):  
Budi Harsanto
Keyword(s):  
Financial Crisis ◽  
Business Ethics ◽  
Moral Hazard ◽  
Global Financial Crisis ◽  
Financial Institution ◽  
Research Question ◽  
Academic Journals ◽  
Lehman Brothers ◽  
The World ◽  
The Global Financial Crisis

The fall of Enron, Lehman Brothers and other major financial institution in the world make researchers conduct various studies about crisis. The research question in this study is, from Islamic economics and business standpoint, why the global financial crisis can happen repeatedly. The purpose is to contribute ideas regarding Islamic viewpoint linked with the global financial crisis. The methodology used is a theoretical-reflective to various article published in academic journals and other intellectual resources with relevant themes. There are lots of analyses on the causes of the crisis. For discussion purposes, the causes divide into two big parts namely ethics and systemic. Ethics contributed to the crisis by greed and moral hazard as a theme that almost always arises in the study of the global financial crisis. Systemic means that the crisis can only be overcome with a major restructuring of the system. Islamic perspective on these two aspect is diametrically different. At ethics side, there is exist direction to obtain blessing in economics and business activities. At systemic side, there is rule of halal and haram and a set of mechanism of economics system such as the concept of ownership that will early prevent the seeds of crisis. Keywords: Islamic economics and business, business ethics, financial crisis 

Unveiling the Theoretical Mistakes in the World Bank Formation and its Implication on Survival of Africa Monetary Union

2019 ◽  
Vol 10 (1) ◽  
pp. 119-124
Author(s):  
Olatunji Abdul Shobande ◽  
Kingsley Chinonso Mark
Keyword(s):  
World Bank ◽  
Monetary Union ◽  
Political Interest ◽  
World Bank Group ◽  
Policy Makers ◽  
The World Bank ◽  
The World ◽  
Bank Group ◽  
The Stability ◽  
Developed Nations

Abstract The quest for urgent solution to resolve the world liquidity problem has continued to generate enthusiastic debates among political economists, policy makers and the academia. The argument has focused on whether the World Bank Group was established to enhance the stability of international financial system or meant to enrich the developed nations. This study argues that the existing political interest of the World Bank Group in Africa may serve as lesson learned to other ambitious African Monetary Union.

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