Reform of key interest rates on the money market and some implications for credit markets

Ongoing reform of key interest rates on the money market is one of the most significant events on financial markets in the world. This is due to the fact that most of the LIBOR rates in different currencies will be discontinued at the end of 2021. Cessation of LIBOR after a number of scandals following emerging global financial crisis in 2008 lead to existence of more benchmark rates constructed as risk-free rates based on transactions, from SOFR in the U.S.A. to SARON in Switzerland. Intention of EU regulators is to replace EURIBOR with ESTR in the future so that ESTR becomes benchmark for EU and EFTA. The last analysis of lenders and borrowers' positions indicates that EURIBOR is satisfactory reformed based on the fact that in its determination data about transaction and expert judgment are included. According to the current prevailed thinking in the banking industry EURIBOR could be continually used. True, not necessarily on the derivatives market, but certainly on the credit and mortgage markets which are particularly related to EURIBOR in eurozone.

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Growth Prospects for Advanced and Emerging Market Economies

Global Economy Journal ◽

10.1515/gej-2016-0045 ◽

2016 ◽

Vol 16 (4) ◽

pp. 599-614 ◽

Cited By ~ 1

Author(s):

Dominick Salvatore

Keyword(s):

Financial Crisis ◽

Interest Rates ◽

Global Financial Crisis ◽

Emerging Market ◽

Emerging Market Economies ◽

Fiscal Stimulus ◽

Secular Stagnation ◽

Market Economies ◽

The World ◽

Growth Prospects

This paper examines the reasons for the slow growth in the advanced countries since the recent global financial crisis, the slowdown in growth or recession in emerging market economies, the danger that the world may be drifting toward a new global financial crisis, and that it may face even secular stagnation. The paper concludes that growth is likely to remain slow for the rest of this decade in advanced countries and to continue to decline in emerging market economies. It also examines the danger that with interest rates at the zero-bound level in advanced nations, a new financial bubble may be in the making as investors, in search of returns, undertake excessively risky investments, and that this may lead to a new global financial crisis. It is not certain, however, that the world is facing secular stagnation and, if so, that a new massive fiscal stimulus (as advocated but some) would prevent it or correct it.

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Assessing The Impact Of The Global Financial Crisis On GCC Countries

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v8i2.682 ◽

2010 ◽

Vol 8 (2) ◽

Cited By ~ 4

Author(s):

Hisham H. Abdelbaki

Keyword(s):

Financial Crisis ◽

Interest Rates ◽

Global Financial Crisis ◽

The United States ◽

Font Size ◽

Negative Effects ◽

Gcc Countries ◽

The World ◽

The Global Financial Crisis ◽

The Impact

No doubt, the international financial crisis that started in the United States of America will cast its effects on all countries of the world, developed and developing. Yet these effects vary from one country to another for several reasons. The GCC countries would not escape these negative effects of this severe crisis. The negative effects of the crisis on gulf countries come from many aspects: first, decrease in price of oil on whose revenues the development programs in these countries depend; second, decrease in the value of US$ and the subsequent decrease in the assets owned by these countries in US$; third, a case of economic stagnation will prevail in the world with effects starting to appear. It is obvious that this would be reflected on the real sector in the economies causing a series of negative effects through decrease of the world demand for exports of GCC countries of oil, petrochemicals and aluminum.  Lastly, increased inflation rates with decreased interest rates will result in a decrease in real interest with an accompanying decrease in incentives for saving and consequently investment and economic development. The main aim of the research is to assess the economic effects of the global financial crisis on GCC countries. The paper results are that the big reserves of foreign currencies achieved by the GCC countries in the past few years have helped increase their ability to bear the effects of the financial effects on one hand and their ability to adopt expansionary policies through pumping liquidity to absorb the regressive effects of the crisis on the other. The paper recommends the necessity of taking precautionary procedures for the effects which will result from the expansionary policies effective in GCC countries.

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Inter-linkages and performance of Asian stock markets amidst COVID 2019

International Journal of Financial Engineering ◽

10.1142/s2424786320500280 ◽

2020 ◽

Vol 07 (03) ◽

pp. 2050028

Author(s):

Rajani B. Bhat ◽

V. N. Suresh

Keyword(s):

Financial Markets ◽

Interest Rates ◽

Stock Markets ◽

Global Economy ◽

Global Financial Crisis ◽

World Health ◽

Corona Virus ◽

The World ◽

Health Organization ◽

The Impact

The corona virus outbreak, which originated in China, has infected lakhs of people. Its spread has left businesses around the world counting costs. The corona virus is going global, and it could bring the world economy to a standstill. COVID-2019 that began in the depths of China’s Hubei province is spreading rapidly, persuading the World Health Organization to declare it as a pandemic. There are now significant outbreaks from South Korea to Italy and Iran, from America to Britain. The ongoing spread of the new corona virus has become one of the biggest threats to the global economy and financial markets. The economic impact of the COVID-2019 pandemic has introduced extraordinary volatility in global financial markets, as participants are obliged to reassess their valuations of all investments and associated derivatives as the situation develops. In an environment where uncertainty makes it unusually hard to price assets and for market-makers to operate, exchanges are providing the only way to establish consensus on these valuations in real time. Volatility has reached levels comparable with the Global Financial Crisis of 2008, with one-day losses not seen since 1987. The situation is made more challenging by high levels of indebtedness and already low interest rates. The financial markets are all integrated into one as global markets in the current era of globalization. It is important that financial markets remain able to perform their role — providing investors with liquidity, facilitating price discovery, and allowing for risk transfer and the transmission of monetary policy. This study aims at examining the performance of the selected Asian stock markets amidst the times of COVID-2019. This study intends to examine the interlinkages of Asian stock markets selected and to observe the impact of COVID-2019 on these markets. The period of study is from 1st December, 2019 to 31st March, 2020. The tools adopted for the study are correlation, regression, ANOVA and paired sample [Formula: see text] test.

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IMPACT OF GLOBAL FINANCIAL CRISIS ON JAPAN, CHINA, INDIA AND USA STOCK EXCHANGE AND INTER-LINKAGE BETWEEN THEM

International Journal of Research -GRANTHAALAYAH ◽

10.29121/granthaalayah.v4.i5.2016.2693 ◽

2016 ◽

Vol 4 (5) ◽

pp. 189-197

Author(s):

Rabia Najaf

Keyword(s):

Financial Crisis ◽

Stock Market ◽

Financial Markets ◽

Global Financial Crisis ◽

Stock Exchange ◽

Garch Model ◽

The World ◽

Prime Objective ◽

The Impact

In this paper, we analyzed the impact of financial crisis on different countries by the using of E-GARCH model .our main finding is that in the financial crisis has impact on the stock exchange of different countries. We proved that due to financial crisis most of countries stock exchange have been affected badly. In the world,the American stock exchange was established in 1792. Two dozen brokers were started the stock trading.Now a day, 2,429 companies are listed under this stock exchange. The prime objective of the scholars is to find out the impact of financial crisis on the different stock market. Scholars have proved that financial crisis have always impacted on the financial markets.

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The global financial crisis and the behavior of short-term interest rates: International and Serbian aspects

Panoeconomicus ◽

10.2298/pan0904491d ◽

2009 ◽

Vol 56 (4) ◽

pp. 491-506 ◽

Cited By ~ 3

Author(s):

Djordje Djukic ◽

Malisa Djukic

Keyword(s):

Financial Crisis ◽

Interest Rates ◽

Global Financial Crisis ◽

Banking Industry ◽

Developed Countries ◽

Short Term ◽

Cross Border ◽

The Us ◽

National Bank ◽

The Global Financial Crisis

Throughout the current global financial crisis the market has continued to fall due to a lack of confidence of those banks that are not yet prepared to lend on the interbank money market. For instance, the negative repercussions of the crisis onto the Serbian financial sector have created a number of issues including a significant increase in lending rates, a difficulty, or impossibility, for the corporate sector to use cheap cross-border loans and a reduction in the supply of foreign exchange on that basis. The inability of the National Bank of Serbia to follow the aggressive reduction of the key interest rate that has been implemented by central banks in developed countries, partly explains the lack of a decline in short-term interest rates by the Serbian banking industry. The first section of the paper focuses on the effects of the financial crisis through the behavior of short-term interest rates in the US and Europe, while the second section gives an estimation of the effects of the global financial crisis on interest rates in the banking industry in Serbia.

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Attitude of Investors to Capital and Money Market Investments Before and After Financial Crisis

International Journal of Sustainable Economies Management ◽

10.4018/ijsem.2014010105 ◽

2014 ◽

Vol 3 (1) ◽

pp. 53-64

Author(s):

Felicia Omowunmi Olokoyo ◽

Babajide Michael Oyewo ◽

Abiola A. Babajide

Keyword(s):

Financial Crisis ◽

Financial Markets ◽

Capital Market ◽

Stock Exchange ◽

Secondary Data ◽

Money Market ◽

Economic Recovery ◽

The World ◽

Before And After ◽

Multivariable Regression

In the second half of 2008, the world experienced financial and economic storm. Value of investments crashed and investors lost money to the extent of their exposure to financial markets. In the light of gradual global economic recovery from the effect of the financial crisis in recent times, the research comparatively studied the attitude of investors to investments before and after the financial melt-down in Nigeria. Secondary data sourced from the Nigerian Stock Exchange (NSE) for the period 1961 to 2011 were analysed using statistical procedures such as correlation, multivariable regression and t-test. The study found out that there was significant change in the attitude of investors before and after the financial crisis to investments, as investors switched funds from capital market securities in favour of money market instruments which guaranteed fixed interest income. Despite the fact that the capital market is gradually recovering; investors still demonstrate low confidence in the market. It was therefore recommended that the NSE should strive to regain and retain common investors' confidence in the primary market through improvement in their corporate performance.

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ASPEK ETIK DAN SISTEMIK DALAM EKONOMI DAN BISNIS ISLAM

ALQALAM ◽

10.32678/alqalam.v31i1.1110 ◽

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

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AN EMPIRICAL STUDY OF INDIAN INSURANCE INDUSTRY POST GLOBAL FINANCIAL CRISIS

GBAMS- Vidushi ◽

10.26829/vidushi.v6i01-02.9723 ◽

2015 ◽

Vol 6 (01-02) ◽

Author(s):

Anis Ur Rehman ◽

Yasir Arafat Elahi ◽

Sushma .

Keyword(s):

Financial Crisis ◽

Global Financial Crisis ◽

Insurance Industry ◽

Primary Data ◽

Policy Recommendations ◽

Insurance Sector ◽

The World ◽

The Impact ◽

The New Deal

India has recently emerged as a major political and economic power in the world. The financial crisis that engulfed the world in 2008 needed developing countries like India to lead the rescue and recovery, instead of G7 westerns countries who dealt with such crisis in the past. Recently, discussions and negotiations are going amongst G20 countries regarding a new global financial architecture (G-20 Summit, 2008). The outcome will affect the relevant industries in India and hence it is a public interest issue for the actuarial profession in the country. Increased and more intrusive and costly regulations and red tapes are likely to be a part of the new deal (Economic Survey 2009-10). The objective of this paper is to study the perception of higher level authorities in Insurance sector regarding the role of regulator in minimizing the impact of global financial crisis. The primary data has been collected from 200 authorities in insurance industry. The data has been analyzed with statistical tools like MS-Excel. On the basis of the findings, various measures and policy recommendations for insurers have been suggested to minimize the impact of crisis.

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