scholarly journals RETHINKING THE ROLE OF STATE IN ADDRESSING FINANCIAL DIFFICULTIES OF THE BANKING SECTORS IN EASTERN EUROPE

2020 ◽  
Vol 9 (20) ◽  
Author(s):  
Svetlana Popović ◽  
Velimir Lukić
Keyword(s):  
Eastern Europe ◽  
Financial Stability ◽  
Banking Sector ◽  
Institutional Environment ◽  
Banking System ◽  
The State ◽  
Positive Role ◽  
Nonperforming Loans ◽  
Role Of The State

Financial problems in the banking sector have historically entailed significant government intervention and the allocation of significant funds for its rehabilitation. The recent financial crisis, manifested in Europe primarily as a banking crisis, reaffirmed the unwritten call of the state to intervene extensively to preserve economic and financial stability, but only for a set of old and developed EU Member States. The paper therefore analyzes the reformed role of the state in solving acute problems in transformed banking systems in Eastern Europe in the light of the post-crisis escalation of the volume of nonperforming loans. The focus of the role of the state was shifted from direct fiscal expenditures to raising the quality of the institutional environment and the rule of law, which enabled an impressive reduction in the rates of nonperforming loans. Foreign ownership in the banking sector has played a positive role because the financial backing of foreign subsidiaries has reduced potential fiscal costs on the one hand and on the other hand it contributed to maintaining confidence in the banking system.

scholarly journals Institutional development and bank competitive transformation in late industrializing economies: the Spanish case

2016 ◽  
Vol 18 (1) ◽  
pp. 27-62 ◽  
Author(s):  
Angela Garcia Calvo
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Historical Analysis ◽  
Institutional Development ◽  
The State ◽  
Role Of The State ◽  
Strategic Coordination ◽  
The Government ◽  
New Generation ◽  
Late Industrializing

This paper explores the contribution of national institutions to the competitive transformation of big commercial banks in late industrializing countries through the analysis of the Spanish case. The paper uses a comparative historical analysis to establish that strategic coordination between the state and large banks is a structural feature of the banking sector but may be articulated differently depending on the balance of power between states, banks and industry, the preferences of these actors, and their resources. Using evidence from Spain since the late 1970s, the paper argues that in this country, state-bank coordination was articulated as a non-hierarchical system of negotiated interactions and mutual exchanges of benefits between small groups of decision-makers at the government, the central bank, and big banks. Under the Spanish model, large banks contributed to the fulfillment of public policy objectives to develop the central bank's capacity to conduct monetary policy, strengthen supervision of the banking system, and modernize the financial sector. In exchange, big banks benefited from a favorable regulation that enabled them to restructure, consolidate the leadership of a new generation of bankers, and reach the efficiency frontier of their industry. The paper contributes to the literature of institutionalism by questioning the traditional dichotomy between market and strategic coordination. It also contributes to the literature of competitiveness by stimulating debate about the role of the state in supporting the transformation of big business.

scholarly journals The role of the state in ensuring food import substitution at the regional level in a pandemic

2021 ◽  
Vol 37 ◽  
pp. 00087
Author(s):  
Tatyana Solovyova ◽  
Danil Zyukin
Keyword(s):  
Financial Support ◽  
Financial Stability ◽  
Arable Land ◽  
Import Substitution ◽  
The State ◽  
Production Cycle ◽  
Investment Activity ◽  
Role Of The State ◽  
The Impact

The study analyzes the aspects that determine the change in the role of the state and the form of its impact on the agricultural sector in the context of the impact of the pandemic on all socio-economic processes in the country. The article reveals the importance of implementing the import substitution program from social and economic positions for Russia. A complex of adverse consequences brought by the pandemic to the public life and economy of the country is given, which determines the change in the role of the state in matters of regulation and direct financial support of agricultural production. The article discusses the advisability of using "helicopter money" as a way to help the population in difficult social conditions and at the same time as a way to stimulate effective demand for essential domestic products, including food products. In the context of a pandemic, the necessity of payments to support direct agricultural producers to maintain their financial stability is substantiated, the calculation of which is recommended to be tied to the arable land area and livestock population. The study provides a list of basic principles that are recommended to be applied when using instruments of direct financial support and regulation from the state. It is important to ensure not only the survival of agribusiness in the current conditions, but also to create opportunities for maintaining investment activity in the implementation of large projects, as well as to ensure the maintenance of the level of intensification in the current production cycle.

scholarly journals The Bahamas

2019 ◽  
Vol 19 (199) ◽  
pp. 1
Author(s):  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Banking Supervision ◽  
Property Market ◽  
The Bahamas ◽  
Poor Growth ◽  
Nonperforming Loans ◽  
Consumer Loans ◽  
Risk Monitoring

The Bahamas appears to be resilient to current threats to its financial stability, but action is needed to safeguard against potential weaknesses. There is a large stock of problem assets that needs to be dealt with from a variety of perspectives: systemic risk monitoring, banking supervision, and crisis management. Vulnerabilities to natural disasters and external economic contagion heighten this need. The banking sector dominates the financial system and has focused on residential mortgages and consumer loans during a long period of economic stagnation. Despite poor growth the sector has remained profitable. However, the small domestic residential property market backing most secured lending is prone to shocks and illiquidity. This has historically led to high and persistent levels of nonperforming loans (NPLs), which significantly increase uncertainty and fragility in the banking system.

scholarly journals THE ROLE OF BANKS AND SECURITIES MARKETS IN THE POST-TRANSITION ECONOMIES OF EASTERN EUROPE

2020 ◽  
Author(s):  
Sasho Arsov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Eastern Europe ◽  
Banking Sector ◽  
Positive Impact ◽  
Financial Sector ◽  
Securities Markets ◽  
Positive Role ◽  
The Impact

Economic theory predicts that the development of the financial sector should have a positive impact on the overall economic development. Research has predominantly confirmed this expectation, with the remark that at earlier stages of economic development this impact should be higher, while a disproportionate banking sector has detrimental effect on growth through its impact on attracting highly skilled workforce, increased presence of moral hazard and the associated banking crises. This issue has been studied only occasionally in the case of the former socialist economies of Central and Eastern Europe and the former USSR. This paper represents an attempt to analyze the impact of the banking sector and securities markets development on the economic growth of these countries. A sample of 22 countries is assembled, using data from 1995 to 2018 and a panel regression and a GMM technique are used to derive conclusions on the researched topic. The analysis has shown that the banking sector has played a positive role in the economic growth throughout the analyzed period, while the role of the stock market is not significant. This is in line with the previous studies which have confirmed that the positive role of the securities markets should be expected only at higher levels of economic development. Also, the impact of the overall financial sector is deemed to be positive.

scholarly journals A structural approach to financial stability: On the beneficial role of regulatory governance

2013 ◽  
Vol 2 (1) ◽  
pp. 7-26 ◽  
Author(s):  
Benjamin Mohr ◽  
Helmut Wagner
Keyword(s):  
Latent Variables ◽  
Financial Stability ◽  
Structural Equation ◽  
Banking Sector ◽  
Institutional Environment ◽  
Equation Modeling ◽  
Regulatory Governance ◽  
Economic Statistics ◽  
Financial Soundness

This paper examines whether the governance of regulatory agencies – regulatory governance – is positively related to financial sector soundness. We model regulatory governance and financial stability as latent variables, using a structural equation modeling approach. We include a broad range of variables potentially relevant to financial stability, employing aggregate regulatory, banking and financial, macroeconomic and institutional environment data for a sample of 55 countries over a period from 2001 to 2005. Given the growing importance of macro-prudential analysis, we use the IMF’s financial soundness indicators, a relatively new body of economic statistics which focuses on the banking sector as a whole. Our empirical evidence indicates that regulatory governance has a beneficial influence on financial stability. Thus, our findings support the view that the improvement of regulatory governance arrangements should be a building block of financial reform

Shipbuilding and the State in Japan since the 1850s

1977 ◽  
Vol 11 (4) ◽  
pp. 601-613 ◽  
Author(s):  
Seymour Broadbridge
Keyword(s):  
Economic Development ◽  
Significant Role ◽  
Economic History ◽  
Private Enterprise ◽  
Banking System ◽  
The State ◽  
The Past ◽  
Role Of The State ◽  
The Government

In the past decade or so there have been several critical revisions of the long-accepted view of the important role of the state in Japan's economic development and programme of modernization generally. Professor Harry Oshima has attempted to demolish the argument that the Meiji governments' policies were at all economically beneficial. On the contrary, he has said, those policies retarded growth, particularly through their neglect of agriculture. Professor Hugh Patrick has cautioned us against giving the Meiji governments too much credit for the development of the banking system. Private enterprise, he has insisted, was also important. Most recently, Professor Kozo Yamamura has delivered yet another broadside against what he considers the myths of Japanese economic history. This time he criticizes the view that the government, by intervening and pioneering model plants, played a significant role in Meiji Japan's industrial dcvelopment.

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