Greece Financial Crises and Sukuk Markets: Experience From Gulf Countries

Directory of Open Access Journals (Sweden)

Aldrin Herwany

2016-12-01

Full Text Available Many studies have been carried out to investigate the impact of recent European financial crises on the performance of financial instruments in other regions. Nevertheless, there have been insufficient studies explaining such impact on Islamic financial instrument. In particular, whether Greece Financial crises have affected performance of Sukuk traded in Gulf Markets needs to be answered. This study is aimed at empirically investigating the causality of credit and liquidity risk on Sukuk Markets in Gulf economies in the period of Greece Financial Crises. We analyzed the Sukuk data by employing Granger casuality test, with all the associated vector autoregression model procedures. Our findings show that Bahrain sukuk market is cointegrated with those of Qatar and UAE in the full period observation. Meanwhile, during the crisis, Qatar Sukuk market is cointegrated with those of UAE Bahrain. We also find that Bahrain Sukuk triggers market shock in both Qatar and UAE Sukuk markets. Bahrain consistently causes changes in price and spread of UAE Sukuk, both in the context of the full period and the during-crisis period.DOI: 10.15408/aiq.v9i1.3733

Financial integration and liquidity crises

NARCIS (Netherlands)

Castiglionesi, Fabio; Feriozzi, F.; Lorenzoni, G.

2017-01-01

This paper analyzes the effects of financial integration on the stability of the banking system. Financial integration allows banks in different regions to smooth local liquidity shocks by borrowing and lending on a common interbank market. We show under which conditions financial integration

Indicators of financial crises do work! : an early-warning system for six Asian countries

NARCIS (Netherlands)

Lestano, [No Value; Jacobs, Jan; Kuper, Gerard H.

2003-01-01

Indicators of financial crisis generally do not have a good track record. This paper presents an early warning system for six countries in Asia, in which indicators do work.We distinguish three types of financial crises, currency crises, banking crises and debt crises, and extract four groups of

Financial Crises and Danish Contract Law

DEFF Research Database (Denmark)

Andersen, Mads Bryde; Lookofsky, Joseph

2016-01-01

of these exceptions - e.g. with specific focus on exceptions related to the possible effects of financial crises ("Hardship") - account must also be taken of their interaction in Danish legal theory and practice, not least because Danish courts do not always specify the exact legal principle which they apply when...

The impact of financial crises on the risk-return tradeoff and the leverage effect

DEFF Research Database (Denmark)

Christensen, Bent Jesper; Nielsen, Morten Ørregaard; Zhu, Jie

50% in magnitude during …financial crises. No such changes are observed during NBER recessions, so in this sense …financial crises are special. Applications to a number of major developed and emerging international stock markets confirm the increase in the leverage effect, whereas the international......We investigate the impact of financial crises on two fundamental features of stock returns, namely, the risk-return tradeoff and the leverage effect. We apply the fractionally integrated exponential GARCH-in-mean (FIEGARCH-M) model for daily stock return data, which includes both features...... and allows the co-existence of long memory in volatility and short memory in returns. We extend this model to allow the financial parameters governing the volatility-in-mean effect and the leverage effect to change during financial crises. An application to the daily U.S. stock index return series from 1926...

The impact of financial crises on the risk-return tradeoff and the leverage effect

DEFF Research Database (Denmark)

Christensen, Bent Jesper; Nielsen, Morten Ørregaard; Zhu, Jie

2015-01-01

% in magnitude during financial crises. No such changes are observed during NBER recessions, so in this sense financial crises are special. Applications to a number of major developed and emerging international stock markets confirm the increase in the leverage effect, whereas the international evidence......We investigate the impact of financial crises on two fundamental features of stock returns, namely, the risk-return tradeoff and the leverage effect. We apply the fractionally integrated exponential GARCH-in-mean (FIEGARCH-M) model for daily stock return data, which includes both features...... and allows the co-existence of long memory in volatility and short memory in returns. We extend this model to allow the financial parameters governing the volatility-in-mean effect and the leverage effect to change during financial crises. An application to the daily U.S. stock index return series from 1926...

Reshaping globalisation: a new order for international financial markets

OpenAIRE

Dieter, Heribert

2002-01-01

Since the Mexican crisis in 1994/95, a large number of developing countries and emerging markets have been hit by financial crises. Argentina is the last country that is suffering from dramatic economic problems. The main cause of these crises are the deregulation and liberalisation of financial markets that have been associated with the current model of globalisation. This model is not sustainable: Is has contributed to massive economic problems in the developing world without providing the ...

Diversification at Financial Institutions and Systemic Crises

NARCIS (Netherlands)

Wagner, W.B.

2006-01-01

We show that the diversification of risks at financial institutions has unwelcome effects by increasing the likelihood of systems crises.As a result, complete diversification is not warranted adn the optimal degree of diversification is arbitrarily low.We also identify externalities that cause

Finite-time singularities in the dynamics of Mexican financial crises

Science.gov (United States)

Alvarez-Ramirez, Jose; Ibarra-Valdez, Carlos

2004-01-01

Historically, symptoms of Mexican financial crises have been strongly reflected in the dynamics of the Mexican peso to the dollar exchange currency market. Specifically, in the Mexican financial crises during 1990's, the peso suffered significant depreciation processes, which has important impacts in the macro- and micro-economical environment. In this paper, it is shown that the peso depreciation growth was greater than an exponential and that these growth rates are compatible with a spontaneous singularity occurring at a critical time, which signals an abrupt transition to new dynamical conditions. As in the major 1990's financial crisis in 1994-1995, some control actions (e.g., increasing the USA dollar supply) are commonly taken to decelerate the degree of abruptness of peso depreciation. Implications of these control actions on the crisis dynamics are discussed. Interestingly, by means of a simple model, it is demonstrated that the time at which the control actions begin to apply is critical to moderate the adverse effects of the financial crisis.

Liquidity, banking and financial crises / B. de Waal

OpenAIRE

De Waal, B

2013-01-01

Some financial experts have blamed deficiencies in Basel II capital regulation for the exacerbation of financial crises in 2007 to 2012. In response to this, new proposals in the form of Basel III attempt to raise the quality, consistency and transparency of the regulatory capital base in order to enhance the risk coverage of Basel II via appropriate ratios. In this article, the authors explore how the new Basel liquidity standards, as encapsulated by the liquid coverage ratio ...

Rationalised panics : The consequences of strategic uncertainty during financial crises

NARCIS (Netherlands)

Daniëls, T.

2009-01-01

This dissertation is about currency and related financial crises such as the contagious Southeast Asian crisis of 1997 or Argentina's collapse and default in 2001. It argues that key to understanding these crises is the doubt that they inflict on market participants about the intentions and actions

Financial crises of the early twentieth century in Ukraine

Directory of Open Access Journals (Sweden)

S.Z. Moshenskyi

2015-12-01

Full Text Available The article analyzes the major financial crises in Ukraine at early twentieth century dealing with the crises of 1899–1902 and 1908–1910. The main attention is paid to the large-scale crisis of 1899–1902 at the new industrial region in Eastern Ukraine where numerous steel and mining companies based on massive foreign investment (mainly Belgian and French were created shortly. The general boom of new joint-stock companies and insufficient provision of these companies by state orders were the main reason of the crisis which was the reflection of the international industrial and financial crisis of those years. The author also researches the crisis of 1908–1910 in the Ukrainian sugar industry.

FINANCIAL INSTABILITY IN ROMANIA

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Cristian, IONESCU

2014-11-01

Full Text Available The aim of this paper is to empirically study the concept of financial stability in Romania, from both a monetary policy perspective and a financial perspective. In this paper, I also compute an aggregate index of financial stability, for the period 2008-2013, explaining the correlations between several extremely important macroeconomic and sectorial variables and financial stability. The article also debates the aspect of policy instruments that aim to promote, highlighting the undertaken measures and also giving some measures recommendations, pointing out the main pillars: crises management; cross-sectoral challenges; banking sector; securities markets and capital markets; insurance sector; pensions sector; access to financial services.

Financial gradualism and banking crises in North Africa region: an investigation by a panel logit model

OpenAIRE

KHATTAB, Ahmed; IHADIYAN, Abid

2017-01-01

Abstract. In order to overcome the troubles of the crisis in the seventies, North African countries have adopted financial liberalization policies to enhance their economic growth. Moreover, these policies have affected the stability of their banking systems. The purpose of this study is to test the impact of financial liberalization on the probability of appearance of banking crises which covers a sample of four countries of the North Africa region during the period 1970-2003 by using a pane...

Financial Crises As the Failure of Arbitrage: Implications for Monetary Policy

OpenAIRE

Saito, Makoto; Shiratsuka, Shigenori

2001-01-01

This paper attempts to view financial crises as the failure of arbitrage among financial markets, and takes the “Japan premium” phenomenon observed in offshore money markets as an important example in favor of this view. In addition, we reconsider, from this perspective, the open market operations conducted by a central bank during a period of financial distress. The paper first derives from the existing theoretical literature several implications regarding how arbitrage among markets is prev...

Macro-prudentiality and financial stability

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Cristian Ionescu

2012-12-01

Full Text Available Taking into consideration the fact that financial crises, as a manifestation form of the financial instability, are becoming more and more frequent, complex and severe, it is important to discuss about the macroeconomic prudentiality, in order to protect and save the economy of a country or of a region by the inherent fragility of a very developed financial system. Therefore, the paper aims to analyze the following aspects: the macro-prudential regulation (in order to a better understanding of the financial instability process, the development of the macro-prudential vision and instruments (but emphasizing the existing limits and economic policies (in order to implement an operational macro-prudential regulation.

String of defaults: Spanish financial crises through the years

OpenAIRE

Shachmurove, Tomer; Shachmurove, Yochanan

2011-01-01

Like many countries, Spain has gone through a series of financial crises, both before and after its industrialization. There are many underlying causes for these crises, as well as for the current Spanish downturn. It is worth noting that there are similarities between recessions throughout the history of Spain. The role of government spending, government regulation, credit institutions, budget deficits, the political climate, and international trade have been important determinants of the st...

State network approach to characteristics of financial crises

Science.gov (United States)

Qiu, Lu; Gu, Changgui; Xiao, Qin; Yang, Huijie; Wu, Guolin

2018-02-01

Extensive works have reported that a financial crisis can induce significant changes to topological structure of a stock network constructed with cross-correlations between stocks. But there are still some problems to be answered, such as what is the relationship between different crises in history and how to classify them? In the present work, we propose a new network-based solution to extract and display the relationships between the crises. The Dow Jones stock market is investigated as a typical example. The cross-correlation matrix between stocks is used to measure the state of stock market, called state matrix. All the states cluster into six sub-categories. A state network is constructed further to display the relationships between all the states, which contains a total of nine communities. It is found that three crises C , D and E (refer to the Lehman's bankruptcy in 2008, the Euro-zone and International Monetary Fund decide the first bailout for Greece in 2010, and the European sovereign debt crisis in 2011, respectively) belong to a specific sub-category and cluster in a single community. The mid-stage of C is closely linked with E, while the other stages with D. The other two crises A and B (refer to the financial crisis in Asia in 1997, and the burst of "dot-com bubble" in 2002, respectively) belong to another sub-category and gather in a corner of another single community. A and B are linked directly with C and D by two edges. By this way, we give a clear picture of the relationships between the crises.

Corporate financial restructuring in Asia: implications for financial stability

OpenAIRE

Michael Pomerleano

2007-01-01

Corporate financial fragility preceding the Asian financial crisis heightened vulnerabilities. Many countries in the region undertook significant corporate financial restructuring after the crisis, with some countries bouncing back much faster than others. These sounder corporate financial practices bode well for financial stability.

Financial Liberalization and Financial Fragility

OpenAIRE

Enrica Detragiache; Asli Demirgüç-Kunt

1998-01-01

The authors study the empirical relationship between banking crises and financial liberalization using a panel of data for 53 countries for 1980-95. They find that banking crises are more likely to occur in liberalized financial systems. But financial liberalization's impact on a fragile banking sector is weaker where the institutional environment is strong--especially where there is respect for the rule of law, a low level of corruption, and good contract enforcement. They examine evidence o...

Does Financial Inclusion Induce Financial Stability? Evidence from Cross-country Analysis

Directory of Open Access Journals (Sweden)

Md. Nur Alam Siddik

2018-04-01

Full Text Available In recent times, financial inclusion and financial stability issue have become a priority on policy agendas across the world. However, there is relative dearth of empirical studies addressing and establishing the link between the same. This study fills this gap. Using panel data of 2001-2013, this study empirically investigated whether financial inclusion contributes to country’s financial stability, measured by Z-score. Robust results from GMM dynamic panel data estimator show that financial inclusion variables as measured by number of SME borrowers to total borrowers and ratio of outstanding SME loans to total loans have significant positive contributions to financial stability. Findings also indicate that GDP per capita, liquidity, proportion of private credit to GDP are positively and proportion of domestic credit provided to private sector and financial crisis are negatively associated with financial stability. Empirical findings of this study is of greater significance to the policymakers as it will invoke the attention of governments and policymakers to undertake such policies to accelerate financial inclusion of their countries which in turn will lead to country’s greater financial stability. This study also contributes to empirical literatures of the issue of financial inclusion and financial stability by reconfirming (or otherwise findings of previous studies.

Financial sector taxation: Financial activities tax or financial transaction tax?

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Danuše Nerudová

2011-01-01

Full Text Available The recent financial crises has revealed the need to improve and ensure the stability of the financial sector to reduce negative externalities, to ensure fair and substantial contribution of the financial sector to the public finances and the need to consolidate public finance. All those needs represent substantial arguments for the discussion about the introduction of financial sector taxation. There are discussed in the paper two possible schemes of financial sector taxation – financial transaction tax and financial activities tax. The aim of the paper is to research the possibility of the introduction of financial sector taxation, to discuss the pros and cons of two major candidates on financial sector taxation – financial transaction tax and financial activities tax and to suggest the possible candidate suitable for the implementation on the EU level. Financial transaction tax represents the tool suitable mainly on global level, for only in that case enables generate sufficient financial resources. From EU point of view is considered as less suitable, for it bears the risk of reallocation. Therefore the introduction of financial activities tax on EU level is considered as a better solution for the financial sector taxation in the EU, for financial sector is exempted from value added tax. With respect to the fact, that the implementation would represent the innovative approach to the financial sector taxation, there are no empirical proves and therefore this could be the subject of further research.

Japonya (1991 ve ABD (2007-2009 Finans Krizlerinin Politik İktisat Perspektifinden Bir Değerlendirmesi = A Comparative Assessment of the Japanese (1991 and US (2007-2009 Financial Crises From a Political Economy Perspective

Directory of Open Access Journals (Sweden)

K. Ali AKKEMİK

2011-07-01

Full Text Available This paper compares from a political economy perspective the financial crisis that broke out in Japan after 1991 and in the US during 2007-2009. Common features of both crises are the initial deregulation in the financial sector and the burst of the consequent asset price bubble. The institutional structure shaped by government interventions in Japan was unable to overcome the crisis and the subsequent long recession while the US government responded relatively quickly to the crisis. This paper comparatively evaluates the causes of the crises from the political economy perspective.

A Bayesian Approach to Excess Volatility, Short-term Underreaction and Long-term Overreaction during Financial Crises

NARCIS (Netherlands)

X. Guo (Xu); M.J. McAleer (Michael); W.-K. Wong (Wing-Keung); L. Zhu (Lixing)

2016-01-01

textabstractIn this paper, we introduce a new Bayesian approach to explain some market anomalies during financial crises and subsequent recovery. We assume that the earnings shock of an asset follows a random walk model with and without drift to incorporate the impact of financial crises. We further

Private Inflows when Crises are Anticipated: A Case Study of Korea

OpenAIRE

Michael P. Dooley; Inseok Shin

2000-01-01

Models of financial crises based on distortions in capital markets have strong implications for the behavior of investors leading up to crises. In this paper we evaluate the hypothesis that deregulation of financial markets in Korea provided the incentives and opportunities for a sequence of capital inflows and crisis. We show that deregulation was associated with a sharp declines in the franchise value of Korean banks. Banks responded by expanding their balance sheets and accumulating high r...

The Impact of the Global Commodity and Financial Crises on Poverty in Vietnam

DEFF Research Database (Denmark)

Thurlow, James; Tarp, Finn; McCoy, Simon

Economic growth in Vietnam has been fairly resilient to the global commodity and financial crises, but it is unclear why. In addition, the impact of the crises on employment and poverty is in dispute. We develop a dynamic computable general equilibrium model to decompose impacts and estimate...... distributional outcomes. Our results indicate that the 2008 commodity crisis increased employment and reduced poverty by favouring labour-intensive exports, especially in agriculture. The 2009 financial crisis reversed these gains. It pushed more than a million workers into unemployment and about 3 million...

FINANCIAL STABILITY AS A FACTOR ECONOMIC SECURITY

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A. V. Endovitskaya

2015-01-01

Full Text Available Summary. The article examines the linkages between financial stability and the level of its economic security. Considered the content of financial stability, represented by its own definition, we studied the basic conditions to achieve it. The logic diagram showing the location of financial stability and financial security to ensure the economic security of the business entity. A system of internal and external factors affecting the financial stability and endanger financial stability and financial security company. It has been established that it is the internal factors such as the availability of financial resources and financial position, capital structure, the company's ability to generate profits determine the level of economic security and its ability to withstand the negative impact of external and internal threats. The necessity of improving the financial sustainability in order to improve the economic security of the enterprise. On the basis of the research proposed matrix of risks affecting the financial stability and economic security, which allows to determine the probability of their occurrence and impact. It presents the economic, social, human, financial, organizational, economic, innovative and productive tools to increase the stability and financial security of an economic entity. List considered standard measures will make a plan of action to minimize the adverse impacts and enhance financial stability and security. Therefore, a prerequisite for the economic security of the enterprise is the attainment of financial stability.

Market liquidity and financial stability.

OpenAIRE

Crockett, A.

2008-01-01

Stability in financial institutions and in financial markets are closely intertwined. Banks and other financial institutions need liquid markets through which to conduct risk management. And markets need the back-up liquidity lines provided by financial institutions. Market liquidity depends not only on objective, exogenous factors, but also on endogenous market dynamics. Central banks responsible for systemic stability need to consider how far their traditional responsibility for the health ...

Reducing the Potential for Future Financial Crises: A Framework for Macro-Prudential Policy in Canada

OpenAIRE

Paul Jenkins; Gordon Thiessen

2012-01-01

Canada needs a policy framework and new governance structure beyond what is in place to reduce the potential for future financial crises. The authors make the case for establishing a formal committee with a mandate to identify potential systemic risks and to act promptly before they materialize. While Canada's system of regulating and supervising financial institutions might hold up as a model of good performance, changes can and should be made, say Jenkins and Thiessen. Future crises undoubt...

The Global Financial Crisis and currency crises in Latin America

NARCIS (Netherlands)

Boonman, Tjeerd M.; Jacobs, Jan P.A.M.; Kuper, Gerard H.

2012-01-01

The Global Financial Crisis (GFC) has aected many regions including Latin America. This paper focuses on currency crises in Argentina, Brazil and Mexico. We estimate an Early Warning System, consisting of a dynamic factor model and an ordered logit model, with monthly data for 1990-2007. Ex ante

Pathways towards instability in financial networks

Science.gov (United States)

Bardoscia, Marco; Battiston, Stefano; Caccioli, Fabio; Caldarelli, Guido

2017-02-01

Following the financial crisis of 2007-2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily distress can spread within the system. However, in financial network models, the details of how financial institutions interact typically play a decisive role, and a general understanding of precisely how network topology creates instability remains lacking. Here we show how processes that are widely believed to stabilize the financial system, that is, market integration and diversification, can actually drive it towards instability, as they contribute to create cyclical structures which tend to amplify financial distress, thereby undermining systemic stability and making large crises more likely. This result holds irrespective of the details of how institutions interact, showing that policy-relevant analysis of the factors affecting financial stability can be carried out while abstracting away from such details.

Financial stability of banking system in China

OpenAIRE

Jiang, B

2014-01-01

This thesis aims at investigating the financial stability of China's banking system. Since the banking system is one of the most important financial intermediaries in the financial systems, the financial soundness of banks could secure the stability of the whole financial system. Two of the factors that may significantly increase imbalance of the banking system, and hence affect financial stability of an economy is the accumulated non-performing loans of banks and the macro-economic turbulenc...

DEREGULATION, FINANCIAL CRISIS, AND BANK EFFICIENCY IN TAIWAN: AN ESTIMATION OF UNDESIRABLE OUTPUTS

OpenAIRE

Liao, Chang-Sheng

2018-01-01

Purpose- This study investigates the undesirable impacts of outputson bank efficiency and contributes to the literature by assessing howregulation policies and other events impact bank efficiency in Taiwan inregards to deregulation, financial crisis, and financial reform from 1993 to2011. Methodology- In order to effectively deal with both undesirableand desirable outputs, this study follows Seiford and Zhu (2002), who recommendusing the standard data envelopment analysis model to measure per...

Impact of Unbalanced Development of Economy on Financial Sector Stability

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Kozlov Vladislav I.

2013-11-01

Full Text Available The article is devoted to the study of c connection between the stability of development of the financial sector and its share in the aggregate volume of production. The article conducts a comparative study of the countries that suffered the large-scale financial and economic crisis in 2007 (USA and Great Britain and countries economies of which turned out to be more stable (Czech Republic, Poland and Finland. In the course of the study the article marks out indicators that allow characterisation of the degree of balancing of economic development. The developed approach is applied for analysis of the Ukrainian economy in the pre-crisis period. Results of the study allow assertion that excessive growth of the financial sector increases the risk of realisation of financial and economic crises independent on the level of economic development of a country. The article develops an approach to assessment of the role of the financial sector in economy. It underlines important aspects of its application for analysing economies of developing countries. The article leaves a vast expanse for further studies and focuses on importance of monitoring of the state and development of the financial sector with consideration of the direction and rates of development of other sectors of economy. The obtained results justify the necessity of use of indicators that characterise structure of the national economy by financial sector control bodies.

Less Government is Good Government? Deregulation as an Undermining Principle of Financial Markets

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Tim Engartner

2010-07-01

Full Text Available Since liberalization became the dominant global narrative the stock response to market shortcomings has been to “slim down” the state and deregulate. In most countries the slogan of “less government is good government” has become a constitutive feature of economic policy since the 1980s. Markets lie at the heart of every successful economy, and despite not necessarily working well on their own, the economic policy of deregulation has been one of the most persistent currents in the global economy. Based as it is on classical liberalism and – at least in its origins and leanings – neoclassical theory, deregulation aims to minimize the influence of the state. But in the context of the current financial and economic meltdown – the worst economic dislocation since the Great Crash of 1929-32 – “downsizing” the state causes growing turmoil. Global networking has made financial markets much more volatile and therefore much more susceptible to crisis.

Morocco; Financial System Stability Assessment

OpenAIRE

International Monetary Fund

2003-01-01

The Financial System Stability Assessment of Morocco reviews the reform program that is aimed at establishing a modern, market-oriented financial system that optimizes the mobilization of savings and the allocation of financial resources. It reviews the modernization of the banking sector and the development of competition within the sector, development of financial markets, and removal of constraints on financial system activity. It also provides reports on the Observance of Standards and Co...

Does High-Quality Financial Reporting Mitigate the Negative Impact of Global Financial Crises on Firm Performance? Evidence from the United Kingdom

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Zhiwei Lin

2014-12-01

Full Text Available Prior literature has claimed that accounting plays a negative role in a financial crisis. The current study sought to determine whether this effect is dependent on the quality of financial reporting. Specifically, this study examined the impact of the quality of financial reporting (as measured via earnings quality on liquidity (measured by the bid-ask spread in the equity market during the 2008–2009 global financial crisis in the United Kingdom. We found, as expected, that market liquidity was much lower during the crisis than prior to the crisis; however, firms with high-quality financial reporting suffered fewer negative effects as a result of the financial crisis. The results were robust after controlling for other influences, such as return volatility, loss making, market value of equity, and other potential endogeneity problems. In addition, adopting alternative models for earnings quality did not alter our inferences. Our results support the notion that high-quality accounting information can reduce information asymmetry and hence enhance investor confidence during a financial crisis. The results suggest that a stable financial reporting system is an important part of that overall economic fabric. Our findings will help build a framework on which an overall financial crisis risk-management strategy can be developed to avoid future crises.

CONSIDERATIONS REGARDING FINANCIAL STABILITY

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MERCEA PATRICIA AMALIA

2018-02-01

target digital coin concepts, use in distributed real-time payment systems of blockchain technologology, artificial intelligence, and information security. However, a large number of economists admit that the current crisis has emphasized the overcoming of the limits of (mainstream economics and its implications in the field of financial regulation and the sphere of monetary policy that should focus not only on price stability, but also on financial stability. In other words, the banks, the financial institutions must be obliged to hold a minimal countercyclical capital and mandatory reserves that should be large enough to cope with the turmoil generated by the decrease of the asset prices and the liquidity risk. In macroprudential policy, the “shadow banking system” (investment banks, hedge funds, private equity funds must also be included.Last but not least, the central banks have to cooperate with the other categories of systemic risk managers: Financial Stability Oversight Council-FSOC (USA, European Systemic Risk Board-ESRB (EU, Financial Policy Committee-FPC (Great Britain, National Committee for Financial Stability-CNSF (Romania.

Framework for Preserving Financial Stability in Montenegro

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Žugić Radoje

2014-01-01

Full Text Available The global financial crisis has challenged the traditional monetary policy framework of one instrument (short-term interest rates - one objective (price stability. More and more central banks nowadays consider financial stability as a monetary policy objective, whereas the Central Bank of Montenegro is the only one that has identified financial stability as its primary objective. As this is a relatively new objective, all central banks endeavouring to attain this objective have been facing numerous difficulties. Therefore, the article analyzes some of these difficulties such as defining financial (instability, the selection of indicators, macroeconomic environment for preserving financial stability, and the like. The main objective of the paper is to analyse the framework for preserving financial stability in Montenegro and the challenges that the Central Bank of Montenegro has been facing in accomplishing this objective

Canada; Financial Sector Stability Assessment

OpenAIRE

International Monetary Fund

2014-01-01

This report discusses key findings of the Financial Sector Stability Assessment on Canada. Canada’s financial system successfully navigated the global financial crisis, and stress tests suggest that major financial institutions would continue to be resilient to credit, liquidity, and contagion risks arising from a severe stress scenario. Elevated housing prices and high household debt remain an area of concern, though targeted prudential and macroprudential measures are proving to be effectiv...

Consolidated supervision of financial institutions and financial market in the Republic of Croatia

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Bojana Olgić Draženović

2005-06-01

Full Text Available The question of regulation and supervision of all parts of financial system is of major importance for any country. In order to protect the interest of the society and to accelerate the economic development, it is necessary to provide adequate legal framework as well as independent supervision institutions. The regulations refer mostly to maintenance of financial stability and consumer protection. The article points out that the structure of the financial sector in the Republic of Croatia is underdeveloped and characterized by domination of the banking sector. Therefore, bank supervision is one of the main tasks of Croatian national bank and all other financial institutions (except banks are regulated by other regulatory institutions. The problems of authority overlapping and insufficient regulation are becoming more complex by the development of financial sector and especially by the deregulation of financial markets. Because of that, it is reasonable to investigate the existing regulatory framework of Croatian financial system concerning its structure and development.

Financial crisis and monetary policy

NARCIS (Netherlands)

Karatas, B.

2014-01-01

Written in the midst of the Global Financial Crisis, the goal of this dissertation is to investigate causes of financial crises in general in order to provide empirical evidence of the driving forces of various crises types. Specifically, this thesis analyses the most common types of financial

The role of 'financial myths' in financial crises

OpenAIRE

Eric S. Rosengren

2011-01-01

Remarks by Eric S. Rosengren, President and Chief Executive Officer, Federal Reserve Bank of Boston, at the Boston University conference on The State of Financial Reform (panel on Lessons Learned from the Global Financial Meltdown), February 28, 2011, Boston, Massachusetts

Financial crises as catalysts for regional cooperation? Chances and obstacles for financial integration in ASEAN+3, MERCOSUR and the eurozone

NARCIS (Netherlands)

Krapohl, S.

2015-01-01

This article compares and analyses the different answers from the Association of Southeast Asian Nations+3 (ASEAN+3), Mercado Común del Dur (MERCOSUR) and the eurozone on financial crises in their respective regions. All three regions were hit by economic turmoil between 1997 and 2012, but whereas

Financial Crises and Automotive Industry Development in Southeast Asia

DEFF Research Database (Denmark)

Doner, Richard F.; Wad, Peter

2014-01-01

The automotive industries of Southeast Asia have grown significantly but unevenly. Thailand has outperformed its neighbours in Malaysia, Indonesia and the Philippines with regard to production and, most notably, export volumes. But the Thai auto industry has not exhibited the level of local...... (indigenous) technology capacity and input growth seen in South Korea, Taiwan and, increasingly, in China. The 1997–98 and 2008 financial and economic crises generally reinforced pre-existing national automotive strategies, but to different degrees: They strongly accelerated an earlier Thai move to exports...... whose very success weakened pressures for upgrading; encouraged more moderate automotive liberalisation in Indonesia and, to a lesser extent, in the Philippines; but promoted only minimal changes to Malaysia’s relatively protectionist national car strategy. The fact that the crises served more...

Financial globalization and crises: overview

NARCIS (Netherlands)

Beck, T.; Claessens, S.; Schmukler, S.L.; Caprio, G.; Beck, T.; Claessens, S.; Schmukler, S.L.

2013-01-01

Financial globalization, the integration of countries with the global financial system, has increased substantially since the 1970s and particularly with more force since the 1990s. Financial globalization has shown to pose both benefits and risks to developed countries and developing countries

CONSIDERATIONS REGARDING THE REFORM OF THE EUROPEAN FINANCIAL SUPERVISION SYSTEM

Directory of Open Access Journals (Sweden)

Persida Cechin Crista

2012-01-01

Full Text Available Financial stability has a crucial role in the financial system and in the economy as a whole, as shown by the current worldwide economic crisis. Therefore, in order to protect the financial system and to ensure financial stability, the identification of the main risk and vulnerability sources is of utmost importance. All involved parties, as well as financial institutions and supervision authorities need to be informed about the risks.Banks, insurance companies and other financial institutions represent the first line of defence against financial crises. These institutions are responsible for maintaining their viability and solvency, as well as for checking the debtors’ credit worthiness and for managing the undertaken risks.

Variations of Young Germans' Informal Conceptions of Financial and Economic Crises Phenomena

Science.gov (United States)

Aprea, Carmela; Sappa, Viviana

2014-01-01

The development of a sound understanding of financial and economic crises phenomena must be considered an important goal within the scope of citizenship, economic and social science education. As with every other educational endeavour, this intention requires solid information about what informal conceptions learners hold about this specific…

Global Financial Crisis – Policy Response

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Dakić Milojica

2014-01-01

Full Text Available Six years after the outbreak of the financial crisis that had shaken the global financial system, experts and analysts all over the world continue discussing the effectiveness, scope and adequacy of mechanisms and measures implemented in the meantime, as well as the adequacy of the underlying theoretical concept. A global consent has been reached on ensuring financial stability through the interaction of monetary, fiscal and prudential policy to ensure the necessary macroprudential dimension of regulatory and supervisory frameworks. The USA crisis spilled over to Europe. Strong support of governments to bail out banks quickly resulted in sovereign debt crises in some peripheral EU Member States. Fiscal insolvency of these countries strongly shook the EU and increased doubts in the monetary union survival. The European Union stood united to defend the euro and responded strongly with a new complex and comprehensive financial stability framework. This supranational framework is a counterpart to the global financial stability framework created by the G20 member countries. Starting from the specific features of the monetary policy whose capacities are determined by euroisation, available instruments and resources for preventive supervisory activities, as well as the role of the government in crisis management, Montenegro created a framework for maintaining financial stability and prescribed fostering and maintaining financial stability as the main objective of the Central Bank of Montenegro.

THE FINANCIAL STABILITY ANALYSIS THROUGH THE WORKING CAPITAL

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LĂPĂDUŞI MIHAELA LOREDANA

2012-12-01

Full Text Available The main goal of any business is to maintain the financial stability not only on the short term but also on medium and long term, in other words to maintain a harmony between financial sources and financial needs, respectively the equality between the assets and liabilities from the balance sheet. On short term, maintaining the financial stability involves correlating the temporary resources with the temporary uses by using the necessary working capital, and on the long-term, the financial stability involves comparing the permanent resources with the permanent uses by working capital indicator. The determination of the financial state of the company at a certain moment represents the key moment in establishing and adopting the economic and financial decisions in the management of the company. Maintaining the financial stability of the company represents one of the main objectives of the financial analysis and management and it also provides the optimum development of the entire economic and financial activity of the company. The analysis of the working capital size is based on the financial statement data and information, and based on this analysis is considered the financial situation of the company, the financial equilibrium state at a certain moment. The purpose of this article is to highlight the fact that the maintenance of the financial stability on medium and long term is subordinated to the “working capital” indicator, its content and interpretation evolving in time and varying differently from one company to another. The results of this research may have broad applicability in the field of the companies’ activity and it materializes in the complex approach of the working capital regarded as a classic indicator, frequently used in the financial analysis and with profound significance in establishing the financial state in general and the equilibrium state in particular.

Consideration on the price stability – financial stability relationship in the context of financial globalization

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Marius Apostoaie

2010-12-01

Full Text Available This study is focused upon the involvement of the central banks regarding the fulfillment of the two main objectives: price  stability and financial stability. These two key concepts are part of an old and ongoing debate that the current turmoil has revived, and that is whether monetary policy should aim, or not, at ensuring financial stability in parallel to its main objective of price stability. On both sides there are solid and well known arguments. In the beginning of the study I have  considered a literature review with regard to price and financial stability issues. After that I have tried to shed some light (from a theoretical point of view on the nature and dynamics of the fundamental interlinkages between the two aspects and there implications on the central banks and the economy. Finally I outline some general conclusions that have emerged in the present study.

42 CFR 137.21 - How does an Indian Tribe demonstrate financial stability and financial management capacity?

Science.gov (United States)

2010-10-01

... 42 Public Health 1 2010-10-01 2010-10-01 false How does an Indian Tribe demonstrate financial stability and financial management capacity? 137.21 Section 137.21 Public Health PUBLIC HEALTH SERVICE... How does an Indian Tribe demonstrate financial stability and financial management capacity? The Indian...

Financial Globalization and the New Capitalism

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Ion Bucur

2009-10-01

Full Text Available Financial globalization, a complex phenomenon that has multiple facets, is directly influenced by some aspects characterizing the current stage of capitalism. In order to decrypt the set of such interferences, the consequences have been emphasized of the excessive trust in the market mechanisms, the role of deregulation and liberalization in promoting a new economic direction, as well as other theses representing the essence of neo-liberal revolution. The realities specific to the last three decays of the 20th century generated enhanced criticism regarding the myth of pure and perfect transparency, the market inability of self-regulation and the illusion of perfect information.The excesses of neo-liberalism imposed the need for a new paradigm, concretized in the mutations in the nature and mechanisms of capitalism, the domination of finances and knowledge, a paradigm in which market globalization and financial profitability logic are becoming priorities.In the second part of the article the conditions are analyzed that favored the occurrence and expansion of financial globalization, as well as the multiple implications of such over the micro and macro-economical mechanisms. A particular focus is on describing the characteristics of financial globalization in the current phase: the occurrence of new financial players (institutional investors and tools, markets de-localization and un-intermediated financial operations. As a conclusion, the tendencies are noticed of the financial world economy to become fragile, of fading connections between the financial and the real economy, of enhanced risk for financial accidents to propagate. Based on these observations, the extent is emphasized to which financial globalization provides the possibility of the financial crises to occur and expand.

Nigeria; Financial Sector Stability Assessment

OpenAIRE

International Monetary Fund

2013-01-01

This Financial Sector Stability Assessment on Nigeria discusses the macroeconomic performance and structure of the financial system. Although Nigerian economy experienced both domestic and external shocks in recent years, the economy continued to grow rapidly, achieving more than 7 percent growth each year since 2009. The performance of financial institutions has begun to improve, though some of the emergency anti-crisis measures continue to be in place. However, the regulatory and supervisor...

Morocco; Financial System Stability Assessment: Update

OpenAIRE

International Monetary Fund

2008-01-01

This paper presents an update to the Financial System Stability Assessment on Morocco. Major reforms have been achieved since the 2002 Financial Sector Assessment Program (FSAP) within a policy of actively promoting economic and financial sector opening. The 2002 FSAP recommendations have been largely implemented. Although the financial system is stable and considerably more robust than in the past, the liberalization of capital flows and increased exchange rate flexibility present challenges...

The Broadening of Activities in the Financial System : Implications for Financial Stability and Regulation

NARCIS (Netherlands)

Wagner, W.B.

2006-01-01

Conglomeration and consolidation in the financial system broaden the activities financial institutions are undertaking and cause them to become more homogenous.Although resulting diversification gains make each institution appear less risky, we argue that financial stability may not improve as total

GOLD NETTING TO STRENGTHEN FINANCIAL SYSTEM STABILITY

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Ahamed Kameel Mydin Meera

2017-08-01

Full Text Available Economic and financial crises seem to occur with increased frequency. Indeed now most countries, including several advanced economies like the US, Europe and Japan, are in serious economic recession. Employment and business opportunities have been much dampened. Inflation seems to be soaring globally and nations are witnessing widening gaps in income and wealth distribution. Many of these advanced economies are also facing shrinking population sizes that translate into aging problems and labor shortages. On top of those, there are environmental issues, including global warming. All these, in turn, have caused regional and global political conflicts and turmoil. The Arab Spring and the sovereign debt problems faced by some European countries like Greece are examples of this. Sustainability of economics and environment is thus of paramount concern of today. This paper considers those problems and suggests Interest-free Gold-based Electronic Netting System (IGENS as an effective way of injecting liquidity into the economy, practically free, that can spur business and employment while bringing about structural stability, inflation checked with both economic and environmental sustainability. Netting or muqassah is a transaction allowed in shari’ah and is practiced worldwide in different forms. Examples include the highly successful WIR Bank of Switzerland, various Local Exchange Trading Schemes (LETS and Bilateral and Multilateral Payment Arrangements between central banks.   Keywords:  Global crisis, Payment system, Gold, Netting, Muqassah, Liquidity, Sustainability, Financial system stability JEL Classification: E40, E42, E51

Financial stability, monetary policy and budgetary coordination in EMU

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Claudiu Tiberiu ALBULESCU

2012-08-01

Full Text Available A series of recent studies analyze the impact of financial crisis on the fiscal soundness in the Euro area countries. Even if their documented results present the transmission mechanisms of the financial instability toward the fiscal sector, a more realistic problem is related to the contribution of the fiscal and budgetary disequilibrium to the financial instability propagation. In this line, we show, based on a simple econometric model, that, beside the expansionary monetary policy, the budgetary deficit conducts to the financial stability deterioration. The financial stability of the Euro area is measured based on an aggregate financial stability index, constructed by employing the IMF methodology used for the financial stress index.

PROFITABILITY AND FINANCIAL STABILITY

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CĂRUNTU CONSTANTIN

2011-09-01

Full Text Available The business activity allows identifying two categories of flows: flows of results and cash flows. Flows affect the income and expenses, participating in training result, the company's profitability. Financial flows involved in their formation both monetary items (which drive the monetary input or output and thus implies a cash flow, and non-cash items (affecting the result, without leading to a cash flow. Are equally identifiable cash flows that do not involve an immediate effect on the outcome or effect on the result equivalent to that spread on the treasury. Financial equilibrium in a general manner evokes the idea of harmony between different elements of a system, which in finance is harmonization of resources with the needs. Financial equilibrium can be defined by the company's ability to secure payment of its proceeds without interruption to current liabilities incurred in implementing its object of activity or tax laws, so it can avoid the risk of bankruptcy. Maintaining financial stability is the essential condition of survival of the enterprise, financial and balanced assessment must take into account the concrete conditions of the occurrence of default.

Crisi economiche e mercati finanziari: è di aiuto un nuovo ordine finanziario? (Economic Crises and Financial Markets: Will a New Financial Order Be Helpful?

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Mario Sarcinelli

2003-12-01

Full Text Available The financial market crises in Japan and the United States due to bubbles and the exchange rate, banking and sometimes foreign debt crises that affected in past years South-East Asia, Russia, Brazil, Argentina, and Turkey made for a brief evaluation of the adequacy of national and international governance mechanisms for preventing and solving them. The widespread dissatisfaction they raise was instrumental in examining whether a larger recourse to finance and risk management is better than macroeconomic management and/or regulation. The types of contract sponsored by Robert J. Shiller in The New Financial Order: Risk in the 21st century have been scrutinised to see whether they offer a better chance to stabilise individual or national income. Even where such an outcome can be secured without aggravating moral hazard, the costs in terms of personal freedom and privacy seem to be particularly high.

Financial Policies and the Prevention of Financial Crises in Emerging Market Economies

OpenAIRE

Mishkin, Frederic S.

2001-01-01

The author defines a financial crisis as a disruption in financial markets in which adverse selection and moral hazard problems become much worse, so that financial markets are unable to efficiently channel funds to those who have the most productive investment opportunities. As financial markets become unable to function efficiently, economic activity sharply contracts. Factors that promote ...

Operational synergy in the US electric utility industry under an influence of deregulation policy: A linkage to financial performance and corporate value

International Nuclear Information System (INIS)

Sueyoshi, Toshiyuki; Goto, Mika

2011-01-01

have examined a synergy effect between electricity and gas services in the US electric utility industry. They have compared electricity-specialized firms with diversified utility firms in their financial performance and corporate value. A problem of their study is that it has not empirically measured the operational performance of the electric utility firms. As an extension of the preceding study, this research investigates the operational performance of 104 US electric utility firms (1990-2004) by fully utilizing DEA (Data Envelopment Analysis). This study finds the three new policy implications. First, the synergy effect has not existed in the operational performance of diversified utility firms before and after the deregulation on the US electricity markets. Thus, core business concentration is more effective for electric utility firms than corporate diversification to enhance their operational performance under the current US deregulation policy. Second, the operational performance has had an increasing trend until 1996 and a decreasing trend after 1996. Thus, the US deregulation policy has been influential on their operational performance. Third, the enhancement in operational performance of electric utility firms has improved their financial performance. The improvement in financial performance has increased their corporate value. Thus, this study finds the business causality among operational performance, financial performance and corporate value in the US electric utility industry. - Research Highlights: →The synergy effect has not existed in the operational performance of diversified utility firms before and after the deregulation on the US electricity markets. →Core business concentration is more effective for electric utility firms than corporate diversification to enhance their operational performance under the current US deregulation policy. →The operational performance has had an increasing trend until 1996 and a decreasing trend after 1996. �

Financial stability from a network perspective

NARCIS (Netherlands)

Leon Rincon, C.E.

2015-01-01

This thesis consists of six chapters related to applications of network analysis’ methods for financial stability. The first chapter introduces the network perspective as a new mapping technique for studying and understanding financial markets’architecture. The second chapter breaks down the

On the nexus of monetary policy and financial stability: Is the financial system more resilient?

OpenAIRE

Mora, Patricia Palhau; Januska, Michael

2016-01-01

Monetary policy and financial stability are closely intertwined, and the resilience of the financial system carries weight in this relationship. This paper explores whether the financial system is more resilient as a result of the G20's post-crisis agenda for financial regulatory reform. It summarizes the agenda's key measures and implementation schedules, both internationally and in Canada, reviews the effectiveness of the reform measures in preventing and addressing financial imbalances, an...

Crisi economiche e mercati finanziari: è di aiuto un nuovo ordine finanziario? (Economic Crises and Financial Markets: Will a New Financial Order Be Helpful?

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Mario Sarcinelli

2012-04-01

Full Text Available The financial market crises in Japan and the United States due to bubbles and the exchange rate, banking and sometimes foreign debt crises that affected in past years South-East Asia, Russia, Brazil, Argentina, and Turkey made for a brief evaluation of the adequacy of national and international governance mechanisms for preventing and solving them. The widespread dissatisfaction they raise was instrumental in examining whether a larger recourse to finance and risk management is better than macroeconomic management and/or regulation. The types of contract sponsored by Robert J. Shiller in The New Financial Order: Risk in the 21st century have been scrutinised to see whether they offer a better chance to stabilise individual or national income. Even where such an outcome can be secured without aggravating moral hazard, the costs in terms of personal freedom and privacy seem to be particularly high.  JEL Codes: F31, F33, F34, F42Keywords: Crisis, Debt, Exchange Rates, Foreign Debt

Prediction of financial crises by means of rough sets and decision trees

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Zuleyka Díaz-Martínez

2011-03-01

Full Text Available This paper tries to further investigate the factors behind a financial crisis. By using a large sample of countries in the period 1981 to 1999, it intends to apply two methods coming from the Artificial Intelligence (Rough Sets theory and C4.5 algorithm and analyze the role of a set of macroeconomic and financial variables in explaining banking crises. These variables are both quantitative and qualitative. These methods do not require variables or data used to satisfy any assumptions. Statistical methods traditionally employed call for the explicative variables to satisfy statistical assumptions which is quite difficult to happen. This fact complicates the analysis. We obtained good results based on the classification accuracies (80% of correctly classified countries from an independent sample, which proves the suitability of both methods.

The Bahamas; Financial Sector Stability Assessment

OpenAIRE

International Monetary Fund

2013-01-01

This article is an overview of the structure of the Bahamian financial system. After the financial crisis in the United States, the Bahamian financial structure showed fragile growth. Tourism, the main source of income for the domestic economy, weakened owing to the U.S. crisis. The increase in oil prices was the key reason for the destroyed infrastructure. However, amidst the vulnerabilities, the banking sector showed stability with high capital and liquidity and sustained challenges; the in...

CONSIDERATIONS ON THE CONTENT AND OBJECTIVES OF FINANCIAL STABILITY

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TENEA ANDREI COSMIN

2017-12-01

Full Text Available This paper is a thorough examination of the concept of financial stability by studying and exposing opinions from the relevant literature regarding the content and objectives of financial stability. I considered that such a study could be useful in an academic perspective, but also from the perspective of performers and those interested in the activities and actions of central banks. Financial stability shows us the capacity of a financial system to maintain its basic functions and adapt to disruptions threatening these functions

ТHE MANAGEMENT OF FINANCIAL STABILITY IN NATIONAL STRATEGIES

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Rodica PERCIUN

2017-02-01

Full Text Available In this article authors provide an overview of national strategies that directly or indirectlyconsider the management of financial stability. The actuality of this research topic is based on severalfactors. Firstly, the depth of the global financial crisis that started in 2007 has shown that financialstability must be ensured and monitored by competent authorities. Secondly, the situation of the nationaleconomy has been worsened since 2015, as a result of massive dilapidation of funds and serious violationswith regard to preserving the systemic financial stability of the Republic of Moldova. Under the presentstate the issue of ensuring financial stability becomes more significant and important. The purpose of theresearch is to analyze and synthesize national strategies which reflect the management of financialstability and to detect the existing gaps. The scientific methods used are the following: systemic approach,analysis and synthesis, induction and deduction, logical analysis, critical analysis, etc. The research hasfound that the policy of preserving the systemic financial stability is missing from the current nationalstrategies, and there is a huge gap with regard to banking supervision and the objective of ensuringsystemic financial stability.

PATRIMONIAL ANALYSIS OF FINANCIAL STABILITY

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GABRIELA CORINA SLUSARIUC

2011-01-01

Full Text Available Patrimonial analysis of financial stability is realized with the help of some indicator determined on the balance: working capital; required working capital and net treasury. These indicators are determined and presented in evolution at two companies with different situations, and there are given conclusions and suggestions concerning achieving and maintaining the financial equilibrium or initiating corrective measures in time, before the imbalance would take irrecoverable forms.

FINANCIAL STABILITY OF INSURANCE AND ITS SOURCES OF SUPPORT

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R. Pikus

2016-03-01

Full Text Available The article describes theoretical aspects of determination of financial stability of insurance companies of Ukraine. It was found the main factors that influence the financial stability of insurance companies. Influencing factors are classified into internal and external and the effects of these factors on insurers' activities are presented. The main criteria of financial stability of insurance companies were deeply analysed and the most significant were chosen: sufficient amount of equity capital, the optimal tariff policy, balanced insurance portfolio, secure and effective reinsurance program, sufficient amount of insurance reserves for future payments, optimal investment management of insurance reserves and high solvency of an insurance company. Basic directions of provision and maintenance of financial stability of insurance companies in post-crisis period were presented. The main problems of provision and maintenance of financial stability of insurance companies were outlined and recommendations for its strengthening were provided.

Stock markets volatility spillovers during financial crises: A DCC-MGARCH with skewed-t density approach

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Dahiru A. Bala

2017-03-01

Full Text Available This paper investigates stock returns volatility spillovers in emerging and developed markets (DMs using multivariate-GARCH (MGARCH models and their variants. In addition, we analyse the impacts of global financial crisis (2007–2009 on stock market volatility interactions and modify the BEKK-MGARCH-type models by including financial crisis dummies to assess their impact on volatilities and spillovers. Major findings reveal that correlations among emerging markets (EMs are lower compared with correlations among DMs and increase during financial crises. Furthermore, we detect evidence of volatility spillovers and observe that own-volatility spillovers are higher than cross-volatility spillovers for EMs suggesting that shocks have not been substantially transmitted among EMs compared to DMs. We also find significant asymmetric behaviour in DMs while weak evidence is detected for EMs. Finally, the DCC-with-skewed-t density model provided improved diagnostics compared to other models partly due to its taking into account fat tails and skewed features often present in financial returns.

FOREIGN DIRECT INVESTMENTS DURING FINANCIAL CRISES

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VINTILA DENISIA MARIANA

2011-12-01

Full Text Available The fundamental idea of International capital flows is that short-term flows can be easily reversed, while flows on a longer time horizon are more stable. Crises are associated with withdrawals of short-term capital flows and growth of the foreign direct investment flows. The current crisis has meant a major decline of international capital flows, also of the foreign direct investment. The analysis in this article tries to establish if and under which conditions foreign direct investments can bring greater stability during the crisis, comparing the evolution of foreign direct investments in the current crisis with their response in previous crises. We show that during previous crises foreign direct investments were stable, behaving differently from other types of capital. Yet, during the current crisis, foreign direct investments have proven to be not so stable and all the components declined, raising questions about the resumption of the positive trend. The stability of foreign direct investments in the past was given by the increase of mergers and acquisitions during the crisis, reflecting fire-sale FDI. This feature is not found in the current crisis as mergers and acquisitions were severe affected by the crises and recorded a major decline. The current paper is realized in the doctoral program entitled PhD in economics at the standards of European knowledge- DoEsEc, scientific coordinator Prof. PhD Rodica Zaharia, institution The Academy of Economic Studies Bucharest, Faculty of International Business, period of research 2009-2012.

EUROPEAN MONETARY FUND - BETWEEN ILLUSION AND FUTURE INSTRUMENT FOR EUROPEAN FINANCIAL STABILITY

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Firtescu Bogdan

2010-12-01

Full Text Available The finance crises that culminate with the Greece situation shows that majority of European countries are facing balance-of-payments difficulties and it is clear that actual mechanism couldnt face the situation. This paper wants to highlight some of the proposals related to the development mechanisms, such the creation of the European Monetary Fund or the design of the European Mechanism for Financial Stability (EMFS, which could include the EMF, showing also the actual mechanism of financing through International Monetary Fund (IMF.Some pro and counter arguments are furthermore taken into discussion.

The Recent Financial Bubble: an Overview

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Thalassinos E.

2009-12-01

Full Text Available The main aim of this paper is to analyse the recent financial crisis and to make recommendations how to handle it in the best possible way. Financial bubbles, since the great depression, have been analysed and some recommendations have been made taking into account the internationalization of the world economy which behaves like a domino. The recent financial crisis in the sub-prime mortgage market creates new problems in the world market with unforeseen continuances. Deflation has been referred to as a possible continuance after a financial bubble because often but not always deflation follows. Deflation often results in financial and economic crises. Financial and economic crises affect the architecture of the monetary system, while a change in the system may affect the role of the dollar, the euro and the yen.

The transmission process of financial crises across the emerging markets: an alternative consideration

OpenAIRE

Abdurrahman, Korkmaz

2012-01-01

This paper offers an alternative consideration for the transmission process of financial crises across emerging markets. Here, we hypothesized that the interdependence effect could weaken, even disappear completely, and veer during a crisis period as a result of the contagion process. The importance of this hypothesis for the policy implication is also highlighted because it can be validated for many cases by our data.

Effects of Financial Crises on the Long Memory Volatility Dependency of Foreign Exchange Rates: the Asian Crisis vs. the Global Crisis

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Young Wook Han

2014-03-01

Full Text Available This paper examines the effects of financial crises on the long memory volatility dependency of daily exchange returns focusing on the Asian crisis in 97-98 and the Global crisis in 08-09. By using the daily KRW-USD and JPY-USD exchange rates which have different trading regions and volumes, this paper first applies both the parametric FIGARCH model and the semi-parametric Local Whittle method to estimate the long memory volatility dependency of the daily returns and the temporally aggregated returns of the two exchange rates. Then it compares the effects of the two financial crises on the long memory volatility dependency of the daily returns. The estimation results reflect that the long memory volatility dependency of the KRW-USD is generally greater than that of the JPY-USD returns and the long memory dependency of the two returns appears to be invariant to temporal aggregation. And, the two financial crises appear to affect the volatility dynamics of all the returns by inducing greater long memory dependency in the volatility process of the exchange returns, but the degree of the effects of the two crises seems to be different on the exchange rates.

FINANCIAL STABILITY CROSS-REFERENCE BASED ON CALCULATION OF ABSOLUTE INDICATORS

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Neli MUNTEAN

2017-04-01

Full Text Available The lack of applied methods in the national practice that would allow the realization of a complex analysis of financial stability in the corporate sector is one of the primary problems outlined in the process of organizing the fair and efficient management system of numerous factors that determine the financial performance in this sector. Under these circumstances, the need for a comprehensive analysis of financial stability in the corporate sector significantly increases, being an integrated part of the entity's financial situation analysis. The purpose and objectives of the article consist in the generalization of theoretical principles, financial stability analysis instruments and techniques in terms of absolute indicators adaptation to the norms and requirements of International Financial Reporting Standards, and in the comparative analysis of several methods that can be used to measure financial stability in the corporate sector. Thus, the following study, developed as a fusion of existing knowledge and authors own research, aims to provide a basis for reflection and discussion with theorists, practitioners and analysts within the financial field.

More Than One Step to Financial Stability

OpenAIRE

Garry Schinasi

2009-01-01

Visiting Scholar Garry Schinasi examines the European proposals for the creation of both a European Systemic Risk Board (ESRB) to oversee macroprudential regulation and a European System of Financial Supervision (ESFS) to strengthen microprudential supervision. He argues that structural vulnerabilities of this regulatory framework need to be addressed to ensure that the early-warning systems will be adequate to avoid future crises. Specifically, Schinasi points to the fact that the ESRB lacks...

Banking Consolidation Process and Impact to Financial Stability

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Lina Novickytė

2011-03-01

Full Text Available Globalization promotes financial market participants to seek opportunities for efficient management of available resources and maximize benefits. In recent years, took place in the con­solidation process is mainly due to both macroeconomic and microeconomic factors. Most often leads to consolidation pro­cesses in order to gain economies of scale, market power and X-efficiency. Market consolidation and financial sector stability studies have shown that concentrated financial intermediaries market have a negative impact on the region/country/sector financial stability. In the future countries and regions (EU must find ways and means to smoothly manage the inevitable process of globalization under the supervision of future merger transac­tions in order to guarantee the efficiency and sustainability of the financial sector. Article in Lithuanian

Illiquidity and financial crisis

NARCIS (Netherlands)

A.M. Pacces (Alessio)

2013-01-01

textabstractThis article analyzes the determinants of liquidity crises based on the dynamics of banking and finance under Knightian uncertainty. In this perspective, the facts of the global financial crisis seem to confirm Minsky's hypothesis of endogenous financial instability derived from Keynes's

Editorial: Special Issue on Financial Planning

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Mark Brimble

2012-11-01

Full Text Available AbstractThe special edition presents current research in the area of financial planning. With the continual upheaval inglobal financial markets (including Australia, the general trend towards self-funded retirement and lessreliance on the state, financial crises and the continual regulatory changes in the financial markets, this issue istimely and topical. This is the third special edition on financial planning, providing an excellent outlet forquality research in financial planning.

MANAGEMENT OF FINANCIAL STABILITY OF ENTERPRISES

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Vladimir P. Bogko

2013-01-01

Full Text Available The priorities for improving the management of the enterprises financial stability in the current context are considered in the article. The scientifically based proposals for developing methodological foundations and tools of such management are developed. The implementation of these proposals allows to reduce financial risks of an enterprise in the terms of unsustainable development of Russian economy.

Crise financeira, estado e regularização jurídica Financial crisis, state and legal regularization

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Nildo Viana

2009-12-01

Full Text Available O Presente artigo discute a questão da crise financeira e seus efeitos na esfera estatal e jurídica, a partir do artigo de josé eduardo faria (2009. para este autor, a crise financeira coloca questões a serem discutidas que possuem ressonância na esfera estatal e jurídica e isto produz uma situação de "poucas certezas e muitas dúvidas", sendo que existiriam cinco possibilidades apontadas por alguns analistas. A análise exposta parte de outra interpretação da crise financeira e, por conseguinte, de suas consequências sociais, bem como apresenta outras tendências e efeitos destas sobre o direito, apresentando uma concepção alternativa ao que este autor apresenta.The present discusses the subject of the financial crisis and your effects in the state and juridical sphere, starting from josé eduardo faria article (2009. para this author, the financial crisis places subjects they be discussed her that possess resonance in the state and juridical sphere and this produces a situation of "few certainties and a lot of doubts", and five pointed possibilities would exist for some analysts. The analysis exposed part of another interpretation of the financial crisis and, consequently, of your social consequences, as well as it presents other tendencies and effects of these on the right, presenting an alternative conception to the that this author presents.

Incorporating Financial Stability in Inflation Targeting Frameworks

OpenAIRE

Burcu Aydin; Engin Volkan

2011-01-01

The global financial crisis has exposed the limitations of a conventional inflation targeting (IT) framework in insulating an economy from shocks, and demonstrated that its rigid application may aggravate the effect of shocks on output and inflation. Accordingly, we investigate possible refinements to the IT framework by incorporating financial stability considerations. We propose a small open economy DSGE model, calibrated for Korea during the period of 2003 - 07, with real and financial fri...

INTERNATIONAL RATINGS IN DETERMINING THE FINANCIAL STABILITY OF UKRAINE

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N. Plieshakova

2014-01-01

Full Text Available Problem of the global financial stability and position of Ukraine in international ratings are considered in the paper. Impact of ratings assessment on the financial stability of the country in general is analysed.

THE IMPORTANCE OF BANKING SUPERVISION IN ENSURING FINANCIAL STABILITY

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CĂRUNTU GENU ALEXANDRU

2014-12-01

Full Text Available Financial stability plays a vital role in terms of the financial system and the economy as a whole. Analysis and management of risks in the banking sector in order to achieve the financial stability of the whole banking system requires the use of established methods in modern management of risk. The financial crisis has demonstrated certain limits in terms of efficient management of risk. In this respect supervisory authorities have developed a number of methods and techniques to detect, monitor and amount of risk. In the present context, to enhance the stability of the banking system and prevent systemic risk, it is proposed to revise the Basel II Agreement. It was necessary to review the existing prudential regulations defining, embodied in Basel III. This new agreement brings more clarity in the financial and banking sector, addresses a wider range of risks, providing a better regulator

Rates of credit obligations compliance on IFRS financial statement as a factor of financial stability

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O. V. Uvarova

2016-01-01

Full Text Available For the purposes of effective management of economic activity of the entities of insufficiently own accounting information. For objective assessment of a financial and economic provision of the entity it is necessary to pass from separate accounting data to certain valuable ratios of major factors – to financial performance or financial ratios. Calculation and interpretation of their values the integral and essentially necessary part of a financial analysis, especially it is important if the company has credit liabilities. Conditions of credit agreements often include accomplishment of credit covenants which represent restrictions for activities and a financial position of the company in addition to timely settlement of percent and a body of the credit and provide to lessors a certain level of safety from bankruptcy of the debtor. The article considers the covenants and financial covenants definitions; the main financial covenants containing in credit agreements between large banks and borrowers; data on structure of a credit portfolio and financial debt of NLMK as at June 30, 2016; the main financial covenants containing in credit agreements of the companies of NLMK Group; definitions and formulas of calculation of financial rates based on the IFRS financial statement; calculation of covenants on the example of IFRS consolidated financial statements of NLMK; subtleties of calculation of financial rates; the main differences of financial rates calculation based on the financial statements prepared on the different principles; conclusion about stability and a financial condition of NLMK by the results received during calculation financial covenants as at end of the first half of the year 2016.

FINANCIAL STABILITY OF BANKS IN TIMES OF CRISIS

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Svetlana Lanets

2015-11-01

Full Text Available This paper is aimed at drawing attention to the current situation and further development of the banking sector in Russia. In particular, it seeks to discuss ways to improve the financial stability of banks. The article looks at the banking system, describes the important role of banks in the economy of the country and establishes correlation between stability of banks and socioeconomic development of the country. It is underlined that the stability of banks is one of the key factors in economic growth. The article analyzes how the banking system has settled after the financial crisis. The focus of the article is on the characteristics of the current financial crisis, compares it to the previous ones and describes the impact of the crisis to the banks. In particular, in the frame of this publication we present the analysis of the features of crisis impact on regional banks and the possibility of losing them in near future. This paper emphasizes the impact of the banking system on the country's economy and demonstrates the importance of financial stability of the banks. Moreover the article underlines a set of financial – economic/bank – government approaches to the issue of improving financial stability in the contemporary financial crisis. The paper summarizes the government role in the time of modern financial crisis and describes the existing strategies of the state. At the same time article shows the dual role of the government activities in preventing to put the finance sector under such stress as on the one hand it helps banks to increase the capitalization of banks while on the other hand it introduces Basel 3 principles, which reduce capital. The study is based on the methods of analysis, comparison, statistical data and theoretical generalization. The scientific and theoretical part of the survey is based on the official statistics and data from the Central Bank. We believe that the issue of bank’s stability, especially in this

Coping with Financial Crises: Latin American Answers to European Questions

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Eduardo A.Cavallo

2013-06-01

Full Text Available Europe faces challenges reminiscent of Latin American financial crises, namely unsustainable sovereign spreads, banking system distress, sudden stops in capital flows and growth rate collapse. The failure of recent liquidity support to normalize the situation suggests the need to refocus the policy debate on fundamentals: structural reform for growth and, where needed, restructuring to resolve banking crises and the debt overhang.  Latin America’s experience yields relevant policy lessons for Europe on all these fronts, tempered only by the slight exception that sharp real devaluation, which was key to spearheading recovery in Latin America, is unfeasible in the eurozone. Struggling eurozone countries are caught between a rock and a hard place, as the currency union imposes strict policy constraints while the reintroduction of national currencies under conditions of crisis would be catastrophic. Nevertheless, contemporary Europe stands a better chance of recovery because, in contrast with the Latin America experience, the European Union possesses greater avenues for international cooperation. With respect to financial support, a resourceful European Central Bank able to avoid chaotic adjustment by brute force is a decisive advantage of Europe relative to Latin America, which only had access to the weaker and less reliable IMF. Arguably, the limited nature of external support strongly contributed to the depth of Latin America’s great collapses. European cooperation can explore and exhaust alternatives to a euro exit to the benefit of all union members and, if dissolution becomes unavoidable, ensure amicable support to ease the transition. The path to success remains uncharted, however, and implementation of the necessary regional mechanisms will require innovation and political will. If the available means of cooperation are not used effectively, crisis countries in Europe may fare worse than those in Latin America.

Gender Inequality and Disabled Inclusivity in Accounting Higher Education and the Accounting Profession during Financial Crises

Science.gov (United States)

Lodh, Suman; Nandy, Monomita

2017-01-01

In this article, the authors find that, during financial crises, the wage gap between female and male accounting professionals declines and gender inequality in higher education is affected. In addition, less support and lower wages for disabled accounting professionals demotivate disabled students in accounting higher education. Because of budget…

Long Range Financial Forecasting for School Districts.

Science.gov (United States)

Baker, Michael E.

Public school systems infrequently project their financial outlook beyond the coming year. Yet, financial projections over a multiyear period are necessary if the financial "crises" that frequently occur in public organizations are to be avoided. This paper discusses the importance of financial forecasting and planning, the development of…

Do Markets Cointegrate after Financial Crises? Evidence from G-20 Stock Markets

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Mahfuzul Haque

2015-12-01

Full Text Available The results of the single-equation cointegration tests indicate that patterns of cointegration in the two main and four sub-periods are not homogeneous. Two key findings emerge from the study. First, fewer stock markets cointegrated with S&P 500 during the crisis period than they did during the pre-crisis. In other words, as the 2008 financial crisis deepened, S&P 500 and G-20 stock indices moved towards less cointegration. The decreasing number of cointegrating relationships implies that the U.S. stock markets and other G-20 markets have experienced different driving forces since the start of the U.S. crisis. Second, among those markets that are cointegrated with S&P 500, they happened to be deeply affected by S&P and the shocks emerging from it. The 2007–2009 financial crises can be considered a structural break in the long-run relationship and may have resulted from effective joint intervention/responses taken by members of G-20 nations.

Systemic risk and hierarchical transitions of financial networks

Science.gov (United States)

Nobi, Ashadun; Lee, Jae Woo

2017-06-01

In this paper, the change in topological hierarchy, which is measured by the minimum spanning tree constructed from the cross-correlations between the stock indices from the S & P 500 for 1998-2012 in a one year moving time window, was used to analyze a financial crisis. The hierarchy increased in all minor crises in the observation time window except for the sharp crisis of 2007-2008 when the global financial crisis occurred. The sudden increase in hierarchy just before the global financial crisis can be used for the early detection of an upcoming crisis. Clearly, the higher the hierarchy, the higher the threats to financial stability. The scaling relations were developed to observe the changes in hierarchy with the network topology. These scaling relations can also identify and quantify the financial crisis periods, and appear to contain the predictive power of an upcoming crisis.

Variations of Young Germans’ Informal Conceptions of Financial and Economic Crises Phenomena

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Carmela Aprea

2014-02-01

Full Text Available The development of a sound understanding of financial and economic crises phenomena must be considered an important goal within the scope of citizenship, economic and social science education. As with every other educational endeavour, this intention requires solid information about what informal conceptions learners hold about this specific aspect of reality. However, even though this necessity is widely acknowledged, respective theoretical and empirical research is rather scarce. The research to be presented here aims to contribute to filling this gap by exploring variations in young Germans’ common-sense conceptions of financial and economic crises phenomena. The research activities adhere to a comprehensive view of how economic issues should be involved in education. Moreover, a phenomenographic research approach is adopted. This approach was implemented in an interview study with 56 secondary school students in Baden-Württemberg (Germany. Besides this study, the paper also considers evidence from German survey data. In the interview study, four different conceptions (i.e., denial of the crisis, magical thinking, optimism, realism could be reconstructed, which vary with respect to whether students’ awareness of specific facets of the crisis was given or not. In addition, from this study as well as from the survey data, an excessively optimistic attitude was stated in young Germans. This attitude, however, seems to be more a symptom of insecurity and overstrain than a manifestation of a profound comprehension. These results are discussed with regard to the design of formal curricula and instruction.

Financial Innovation: A Permanent Agenda in Finance

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Wesley Mendes-Da-Silva

2017-05-01

Full Text Available The Journal of Financial Innovation (JoFI, which is totally independent and completely free to anyone who is interested in reading it, has been establishing itself as one of the first periodicals dedicated to financial innovation, a subject that has been growing in importance in various spheres of interest, from academia to industry, including policy makers. Economic stability and growth are closely linked to financial innovation in its various formats, i.e. products, processes and financial institutions.At the end of the 1980s the financial market in the United States and its institutions were facing changes that were seen as revolutionary at the time. In other words, at that particular moment in time we witnessed the rise of financial instruments and institutions that did not even exist at the end of the 1970s. As Mishkin (1990 points out, there is still an interest in understanding better the dynamic of the changes in financial systems and the proliferation of financial products. In this regard, the forces behind financial innovation are increasing in relevance. These include the conditions required for changes in the market, advances in technology, market (deregulation, different types of crisis that are relevant to the market, new challenges facing banks, and other such matters.

Eroding market stability by proliferation of financial instruments

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Caccioli, F.; Marsili, M.; Vivo, P.

2009-10-01

We contrast Arbitrage Pricing Theory (APT), the theoretical basis for the development of financial instruments, with a dynamical picture of an interacting market, in a simple setting. The proliferation of financial instruments apparently provides more means for risk diversification, making the market more efficient and complete. In the simple market of interacting traders discussed here, the proliferation of financial instruments erodes systemic stability and it drives the market to a critical state characterized by large susceptibility, strong fluctuations and enhanced correlations among risks. This suggests that the hypothesis of APT may not be compatible with a stable market dynamics. In this perspective, market stability acquires the properties of a common good, which suggests that appropriate measures should be introduced in derivative markets, to preserve stability. in here

Monetary stability and financial development in Sub-Saharan countries

NARCIS (Netherlands)

Adema, Yvonne; Sterken, Elmer

2001-01-01

Abstract We analyze the interrelation between monetary stability and financial structure in 20 Sub-Saharan economies. Using a panel data set we estimate the impact of monetary stability and financial development on income per capita. Special interest is given to the conditions of the so-called

Monetary stability and financial development in Sub-Saharan countries

NARCIS (Netherlands)

Adema, Yvonne; Sterken, Elmer

2001-01-01

We analyze the interrelation between monetary stability and financial structure in 20 Sub-Saharan economies. Using a panel data set we estimate the impact of monetary stability and financial development on income per capita. Special interest is given to the conditions of the so-called CFA-countries,

Financial stability in the eurozone : Where do we stand?

NARCIS (Netherlands)

Arnold, I.J.M.

2007-01-01

At the start of the EMU, concerns about fiscal and monetary stability dominated the academic debate. In contrast, financial stability issues were largely overlooked. Since then, more attention has been paid to the implications of the EMU for financial regulation and supervision and to the drawbacks

Evaluating the Financial Stability of Banking System, Considering the Emergence Property

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Lesik Vitaliy O.

2017-03-01

Full Text Available The article is concerned with analyzing the existing approaches to evaluation of the financial stability of banking system, substantiating the expedience of accounting, and generalizing the characteristics of the emergence property to determine its level. The article considers the interrelation of concepts of «financial stability» and «financial sustainability», the necessity of their correlation, taking account of the time factor, has been substantiated. A critical analysis of the approaches to evaluating the financial stability of banking system has been carried out, their eligibility according to the criteria of accounting of the identification attributes of systemacity and the analytical data aggregation has been examined. To determine the status of banking system as a system phenomenon, the necessity of carrying out an evaluation of its financial stability on the basis of the emergence approach has been substantiated, including the following directions: intensity of credit and financial interaction in the interbank market; functional load of the banking system as to ensuring the macroeconomic development; structural changes and financial disparities in the banking system; scale effects that arise as a consequence of change in the main financial parameters of the system banks.

Le directeur financier

OpenAIRE

Mattiacci , Noëllie

2015-01-01

Following multiple economic crises, the Chief Financial Officer has become a major player within the company. Its missions have unquestionably evolved. Initially, he performed accounting missions ensuring effective financial management. Today, it occupies the strategic functions necessary to the development of the company. This diversity of skills allows him to have a global and cross-enterprise vision. Despite its leading role, no study was conducted concerning the determination of the legal...

THE IMPACT OF CAPITAL STRUCTURE ON THE ENTERPRISE FINANCIAL STABILITY

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A. V. Ivanyshcheva

2009-06-01

Full Text Available Functioning of production enterprises in the conditions of continuous change of market environment require a special attention of management system to providing their activities. The enterprise financial stability management is one of integral parts of the management system. The increased or insufficient financial stability adversely affects the enterprise competition ability that leads to decreasing the profitability and worsening the financial results of its activities.

SUPERVISION OF CREDIT INSTITUTIONS SIGNIFICANT RISKS TO FINANCIAL STABILITY

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LUCIAN-ION MEDAR

2014-12-01

Full Text Available Financial stability of Romanian banking system is determined by the constant supervision of credit institutions significant risks. Accession of Romania to Union Banking requires the signing of a linked protocol between the central bank and European Central Bank regarding prudential supervision to ensure financial stability. This means that from the next year, the central bank will impose a new supervision of credit institutions in our country. And especially to those credit institutions that do not fall under European supervisors, according to the procedures of the ECB. Through this study we propose to specify the main elements of management of significant risks to ensure financial stability.

Financial stability or economic stability?

OpenAIRE

Ana POPA; Laura GIURCA VASILESCU

2010-01-01

This paper is based on the dilemma: effect or cause in the analysis of the economic and financial crisis? The first finding of the study is that it has always been easier to consider that the mistakes from the financial field caused the economic crisis. Currently, in the European Union and Romania there is a concern for aggressive action against financial instability. The second finding is that the crisis phenomenon manifest synergetic, thus the deterioration in the macro and micro- financial...

FINANCIAL STABILITY OF ISLAMIC AND CONVENTIONAL BANKS IN BANGLADESH: REVISITING STABILITY MEASURES AND ANALYZING STABILITY BEHAVIOR

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Md Enayet Hossain

2018-03-01

Full Text Available This study intends to assess the relative financial stability of Islamic banks in Bangladesh using three different Z-Scores as financial stability measures, based on a sample of 29 listed commercial banks (23 conventional and 6 Islamic in Bangladesh over the period 2005-2016. Apart from the existing measure of financial stability, Z-Score, the paper contributes to the literature by developing an alternative Z-Score based on bank’s loan portfolio infection ratio. We first use pair-wise comparison and find that Islamic banks are financially more stable in two stability measures i.e. Z-Score (based on Capital Adequacy Ratio and Z-Score (based on Infection Ratio. We then perform static (random effects and dynamic (GMM panel data analysis. By controlling for bank-specific, industry-specific and macroeconomic variables in the regressions, we find that Islamic banks are financially more stable in 2 panel regressions of Z-Score (based on Infection Ratio. We also find that the presence of Islamic banks increases the stability of all banks in the system including their conventional peers.

Chaos, Prediction and International Financial Crises

OpenAIRE

Stokes, Kenneth M.

2002-01-01

The lasting theoretical significance of the South East Asian financial crisis of 1997/98 is that it poignantly offers a critical empirical assessment of equilibrium-centered (first generation) models of international financial crisis. Situating discussion initially in a vignette and commentary on recent events in Argentina, and while reflecting upon the S.E. Asian crisis, we comment upon policy and protocol shifts evident in the International Monetary Fund. These are indicative of a demand fo...

FINANCIAL STABILITY OF SMALL BUSINESS: THE ESTIMATION AND DYNAMICS OF REGIONAL DEVELOPMENT

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A.U. Makarova

2008-03-01

Full Text Available In clause the problem of an estimation of financial stability of the enterprises of small business is considered. It is offered to use traditional indicators of an estimation of the financial stability, describing it in the short-term period, and such indicators as equation of monetary streams, qualitative risk-management, a level äèâåðñèôèêàöèè business and competitive position of the company for an estimation of stability in the long-term period. On the basis of data of statistical supervision over small enterprises the estimation of dynamics of results of financial activity and financial stability of small enterprises of Sverdlovsk area is lead to 2001 – 2005 is drawn a conclusion about low parameters of solvency and financial stability of small enterprises of region in comparison with normative parameters and data on the large and average enterprises. The measures directed on increase of financial stability of the enterprises of small business are offered.

Financial states of world financial and commodities markets around sovereign debt crisis

Science.gov (United States)

Nobi, Ashadun; Lee, Jae Woo

2017-11-01

We applied a threshold method to construct a complex network from cross-correlations coefficients of 46 daily time series comprised of 23 global indices and 23 commodity futures from 2010 - 2014. We identify financial states of both global indices and commodity futures based on the change of the network structure. The trend of the average correlation is decreasing except sharp peak during crises during the study period. The threshold networks are generated at a threshold value of θ = 0.1 and the change of degrees of each node over time is used to identify the financial state for each index. We observe that commodity futures, such as EU CO2 emission, live cattle, natural gas as well as the financial indices of Jakarta and Indonesia stock exchange (JKSE) and Kuala Lumpur stock exchange (KLSE) change states frequently. By the average change in links we identify the indices which are more reactive to crises.

Risk, Reward, and Regulations: Reshaping the Financial Services Industry.

Science.gov (United States)

Saul, Ralph S.

1984-01-01

Deregulation has had much to do with the competitive drive and vitality of financial services within the United States. The risks and rewards of deregulation for financial institutions are discussed, and principles which should serve as a guide in building any new regulatory structure are examined. (RM)

Efficiency of Mechanisms for Ensuring Financial Stability in Developed Countries

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Mizjuk Bohdan M.

2016-08-01

Full Text Available The aim of the article is to identify relationships between the monetary policy and long-term financial stability. The main method of the study is retrospective analysis of macroeconomic and financial performance of the United States and other developed countries. It has been shown that neither Neo-Keynesian nor monetarist approaches are able to provide long-term financial stability under simultaneous low levels of volatility of GDP and inflation. In addition, the policy of inflation targeting in developed countries is not able to eliminate the risk of significant macro-economic recessions. The article states that the cause of the recessions is a systemic risk growth due to concentration of financial resources in the banking sector and in the hands of owners of non-financial corporations. This concentration has two effects: 1 growth of moral hazard at crediting; 2 decrease in the effective demand on the part of households. Redistribution of financial resources among different macro-economic groups of agents does not happen in a short period of time and is a result of the long-term monetary policy. Since the modern economic statistics has certain methodological problems with calculation of the Gini coefficient, such indicator as a share of wages in GDP is proposed in the article for studying the dynamics of uneven distribution of financial resources in the United States. The conducted retrospective analysis of the US monetary policy showed that an important system indicator of uniformity of financial resources distribution among macroeconomic agents falls out of sight of regulators. Distribution of macroeconomic risks depends on distribution of financial resources in the system, which determines its financial stability. The article justifies the need for developing the monetary policy methods that would simultaneously minimize the volatility of the GDP, inflation and maintain a uniform distribution of financial resources at an acceptable level.

Early warning systems of financial crises: implementation of a currency crisis model for Uganda

OpenAIRE

Heun, Michael; Schlink, Torsten

2004-01-01

The objective of this paper is to implement a prototype of a currency crisis model as part of an early warning system framework for Uganda. The financial systems of developing countries like Uganda are especially vulnerable and therefore robust instruments to predict crises are needed. Our model is based on the signals approach developed by Kaminsky, Lizondo and Reinhart (1998) and Kaminsky and Reinhart (1999). The basic idea of the signals approach is to monitor several indicators that tend ...

Assessing Romanian financial sector stability: the importance of the international economic climate

OpenAIRE

Albulescu, Claudiu Tiberiu

2008-01-01

The aim of this paper is to develop an aggregate stability index for the Romanian financial system. The index which is meant to enhance the set of analysis used by the central bank to assess the financial stability accurately reflects the financial stability dynamics and the periods with financial turbulences during 1997-2007 in Romania. By the application of a technique which enables the measurement of the components’ contribution to the aggregate index volatility, we show that some individu...

International financial crisis and bank statization in Germany Crise financeira internacional e estatização bancária na Alemanha

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Roberto Chacon de Albuquerque

2010-12-01

Full Text Available Facing an international financial crisis that could lead its own financial system to the brink of collapse, the German government needed to show political will in order to save financial institutions in risky situations. This article analyzes the legal strategies used to rescue the financial system, including the statization of banking institutions as an ultima ratio. Prior to the bank statization established by the Rescue Takeover Act, the Financial Market Stabilization Act foresaw an increase in the capital of financial institutions by means of state control without statization. This last act, nonetheless, has not been considered enough to avoid the collapse of a banking institution that is relevant for the whole financial system such as Hypo Real Estate (HRE.Enfrentando uma crise financeira internacional que pode levar ao colapso de seu próprio sistema financeiro, o governo alemão precisou demonstrar vontade política para salvar instituições financeiras em situação de risco. Este artigo analisa as estratégias legais utilizadas no resgate do sistema financeiro, incluindo a estatização de instituições bancárias como ultima ratio. Antes da lei de estatização bancária, da Lei de Resgate de Empresas para a Estabilização do Mercado Financeiro, a Lei de Estabilização do Mercado Financeiro previa um aumento do capital das instituições financeiras com controle estatal sem estatização. Esta lei, no entanto, não foi considerada suficiente para evitar o colapso de uma instituição bancária relevante para todo o sistema financeiro como o Hypo Real Estate (HRE.

Challenges to the Implementation of a New Framework for Safeguarding Financial Stability

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Vlahović Ana

2014-09-01

Full Text Available There is probably no single economic concept that has attracted more attention and intrigued scientific and professional circles than financial stability. For over a decade now that have been efforts to establish the starting point in explaining this condition or characteristic of the financial system since some find that the key to defining financial stability lies in stability and others argue in favour of the opposite, instability. Unfortunately, no agreement has been reached on a universal definition that would be widely accepted at the international level. Consequently, this gave rise to open discussions on systemic risk, creating a framework for preserving financial stability, and the role of central banks in this process. This article analyses the results achieved in the development of a theoretical concept of financial stability and its practical implementation. A consensus has been reached on the necessity of removing rigid barriers between macro and prudential policies and on the necessity of their coordinated actions. The primary objectives of monetary and fiscal stability have been shifted towards preserving financial stability. The isolated macroprudential principle rightfully got the epithet of an archaic approach. Coordinated micro and macroprudential policies have definitely prevailed and become reality in many countries, including Montenegro. Created institutional frameworks for safeguarding financial stability at all levels - national, Pan-European and global - represent a challenge for further comparative studies.

The 1980s financial liberalization in the Nordic countries

OpenAIRE

Honkapohja, Seppo

2012-01-01

The financial liberalization in the four Nordic countries (Denmark, Finland, Norway, and Sweden) that took place mostly in the 1980s led to a major financial crisis in three of those countries. The crises in Finland, Norway, and Sweden are among the deepest financial crises in advanced market economies since World War II. Denmark experienced some banking problems but managed to avoid a systemic crisis. This paper reviews the process of liberalization and discusses the reasons why Finland, Nor...

Linkages between financial development, financial instability, financial liberalisation and economic growth in Africa

OpenAIRE

Enowbi Batuo, M.; Mlambo, Kupukile; Asongu, Simplice

2017-01-01

In the aftermath of the 2008 global financial crisis, the implications of financial liberalisation for stability and economic growth has come under increased scrutiny. One strand of literature posits a positive relationship between financial liberalisation and economic growth and development. However, others emphasise the link between financial liberalisation is intrinsically associated with financial instability which may be harmful to economic growth and development. This study assesses ...

Capital flows, bazookas and unconventional monetary policy : Essays in international financial stability

NARCIS (Netherlands)

Frost, Jonathon Jeffrey

2015-01-01

Do international capital flows make countries more or less vulnerable to financial crises? Should countries shield their economies from stress with capital controls? ‎Once a crisis hits, should the public sector launch large-scale support programs ("bazookas")? And if the central bank decides to

Investigation of external and internal shock in the stability of Indonesia’s financial system

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Maulina Vinus

2017-07-01

Full Text Available The objective of this research is to develop a financial system stability index and analyze the internal and external factors that we expect to affect the stability of the Indonesian financial system. We measured the single model of financial system stability index (FSSI from year 2004M03 to2014M09 in Indonesia, and compiled a single quantitative measure based on aggregate internal factors and external factors to capture and predict the shocks of the financial system stability. Stability parameters were composed of composite indicators on different bases. In addition, we developed a comprehensive index component associated with the relevant market conditions, including banking soundness index, financial vulnerability index, and regional economic climate index. Results stated that US economic growth and economic growth of ASEAN countries positively affected financial stability. In addition, current account, exchange rate, inflation, interest rate were shown to negatively affect financial stability. The results of this study imply that internal factors have a strong influence on the financial stability. Therefore, the central bank should give a fast and correct response to the changes of external and internal financial environment, especially for internal factors through monetary policy.

Chapter 2: The Financial Crisis

OpenAIRE

Hans-Werner Sinn; John Hassler; Gilles Saint-Paul; Giancarlo Corsetti; Michael P. Devereux; Tim Jenkinson; Jan-Egbert Sturm; Xavier Vives

2009-01-01

The financial turmoil that originated in 2007 and developed into an unprecedented crisis battering financial and real markets is the latest manifestation, on a grand scale and with new attributes, of a welldefined pathology in the process of market liberalization and integration in the post-Bretton Woods era. At the root of the crisis lies a fundamental inconsistency between financial globalisation – the process of liberalization and deregulation driving the impressive growth of world finan...

Il crescente indebolimento del sistema finanziario internazionale (The ongoing weakening of the international financial system

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H.P. GRAY

2013-10-01

Full Text Available A hegemon-by-committee, or a group of nations playing the role of a dominant financial power, is necessary for the international financial system to withstand crises arising from drastic shifts of funds among national currencies, accompanied by large movements of exchange rates. These wide fluctuations in exchange rates and subsequent financial transactions can trigger a collapse of prices in dollar-denominated financial assets in US financial markets, thus undermining the global economy. With no single nation apparently capable of playing the hegemon, international cooperation is imperative. An important theme of the paper is that allocative efficiency may not be compatible with adequate financial stability efficiency.JEL: F31, G28

The Financial Crisis: Lessons from History

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Brian Grinder

2016-01-01

Full Text Available Financial crises have regularly afflicted economies throughout history and the United States has been no exception.  This paper examines the Panic of 1907, the Crash of 1929 and the Great Depression and the Great Recession of 2007-08 and discusses the responses of the government and regulators.  The short version of the story is that the while the government response has varied in terms of monetary and fiscal policy, the regulatory response has remained essentially the same.  The typical reactive regulation sounds good and gives the appearance of accomplishing something but, in fact, only serves to sow the seeds of future crises. The ineffective implementation of existing regulation has had a similar result. Indeed, several authors note that most financial innovation in recent years has its origins in circumventing new regulations. Likewise, government monetary and fiscal responses may or may not help the economy and often give the appearance of great arbitrariness.  Our conclusion is that there will be unforeseen financial crises in the future, sweeping regulation and promises of recent politicians notwithstanding.  Serious study of the unanticipated consequences of this regulation and the development of more robust risk management systems will help us mitigate the effects of future crises but will be of little assistance when it comes to avoiding them. Developing the analyses and risk management systems requires a detailed study of financial history keep both successes and failures fresh in our collective memory.

The Financial Crisis: Lessons from History

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Brian Grinder

2015-02-01

Full Text Available Financial crises have regularly afflicted economies throughout history and the United States has been no exception.  This paper examines the Panic of 1907, the Crash of 1929 and the Great Depression and the Great Recession of 2007-08 and discusses the responses of the government and regulators.  The short version of the story is that the while the government response has varied in terms of monetary and fiscal policy, the regulatory response has remained essentially the same.  The typical reactive regulation sounds good and gives the appearance of accomplishing something but, in fact, only serves to sow the seeds of future crises. The ineffective implementation of existing regulation has had a similar result. Indeed, several authors note that most financial innovation in recent years has its origins in circumventing new regulations. Likewise, government monetary and fiscal responses may or may not help the economy and often give the appearance of great arbitrariness.  Our conclusion is that there will be unforeseen financial crises in the future, sweeping regulation and promises of recent politicians notwithstanding.  Serious study of the unanticipated consequences of this regulation and the development of more robust risk management systems will help us mitigate the effects of future crises but will be of little assistance when it comes to avoiding them. Developing the analyses and risk management systems requires a detailed study of financial history keep both successes and failures fresh in our collective memory.

Understanding Financial Fluctuations and Their Relation to Macroeconomic Stability

OpenAIRE

Nora Guarata; Carolina Pagliacci

2017-01-01

This paper examines how financial fluctuations and macroeconomic stability interact in the case of Venezuela, acknowledging that financial conditions deteriorating the macroeconomic environment can arise with both good and bad macroeconomic performance. An empirical methodology is provided that constructs two indexes, which are fully interpretable and are constructed with a minimum set of assumptions applied to a large number of financial time series. Structural interpretation of indexes is p...

Assessing Financial Vulnerability in Emerging Economies: A Summary of Empirical Results

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Morris Goldstein

2000-06-01

Full Text Available This paper aims to identify key empirical regularities in the run-up to banking and currency crises that would enable officials and private market participants to recognize vulnerability to financial crises at an earlier stage. This, in turn, should make it easier to motivate the corrective policy actions that would prevent such crises from actually taking place. Interest in identifying early warning indicators of financial crises has soared of late, stoked primarily by two factors. First, there is increasing recognition that banking and currency crises can be extremely costly to the countries in which they originate; in addition, these crises often spillover via a variety of channels to increase the vulnerability of other countries to financial crisis. The second reason for the increased interest in early warning indicators of financial crises is that there is accumulating evidence that two of the most closely watched market indicators of default and currency risks-namely, interest rate spreads and changes in credit ratings- frequently do not provide much advance warning of currency and banking crises. The other reason why market prices may not signal impending crises is that there are often widely and strongly-held expectations of a bail-out of a troubled borrower by the official sector ?be it national or international. Dooley has stressed this point in several papers. If interest rate spreads and sovereign credit ratings only give advance warning of financial crises once in a while, increased interest attaches to the question of whether there are other early-warning indicators that would do a better job, and if so, what are they? This is one of the key questions we address in this paper.

Linear and nonlinear market correlations: Characterizing financial crises and portfolio optimization

Science.gov (United States)

Haluszczynski, Alexander; Laut, Ingo; Modest, Heike; Räth, Christoph

2017-12-01

Pearson correlation and mutual information-based complex networks of the day-to-day returns of U.S. S&P500 stocks between 1985 and 2015 have been constructed to investigate the mutual dependencies of the stocks and their nature. We show that both networks detect qualitative differences especially during (recent) turbulent market periods, thus indicating strongly fluctuating interconnections between the stocks of different companies in changing economic environments. A measure for the strength of nonlinear dependencies is derived using surrogate data and leads to interesting observations during periods of financial market crises. In contrast to the expectation that dependencies reduce mainly to linear correlations during crises, we show that (at least in the 2008 crisis) nonlinear effects are significantly increasing. It turns out that the concept of centrality within a network could potentially be used as some kind of an early warning indicator for abnormal market behavior as we demonstrate with the example of the 2008 subprime mortgage crisis. Finally, we apply a Markowitz mean variance portfolio optimization and integrate the measure of nonlinear dependencies to scale the investment exposure. This leads to significant outperformance as compared to a fully invested portfolio.

Monetary Policy under the Border between Price Stability and Financial Stability

Directory of Open Access Journals (Sweden)

Irina-Raluca BADEA

2015-09-01

Full Text Available The international financial crisis drew the line for the international and national authorities that conducted and implemented faulty monetary and financial policies, regardless the potential risks that might arise. It was only after the crisis burst when everyone realized the impact the systemic risk can have on the global financial system and, consequently, on every national economy. The conventional point of view is that inflation is the main source of financial instability, but recent evidence points out the fact that reaching the inflation target does not necessarily mean that the financial system is stable. What is the most important is that any source of financial instability should be diminished if not erased, hence preserving financial stability has become an important goal for the authorities, who dispute whether to include it on the objectives list of central banks or authorize another institution to achieve it. Therefore, the main goal of this paper is framing the present monetary policy framework with respect to its objectives and strategies and the necessity to reconsider it in a realistic manner in order to prevent another collapse in case of an economic downturn.

From trial to triumph: How Canada’s past financial crises helped shape a superior regulatory system

Directory of Open Access Journals (Sweden)

Lawrie Savage

2015-09-01

Full Text Available As anyone paying attention during the 2008–2009 financial crisis is aware, the Canadian financial system weathered the storm uniquely well. Exactly why Canada’s system remained so comparatively stable, while so many other foreign systems broke down, is a question that remains largely unsettled. One explanation may be that the regulatory system that emerged from a very specific history of prior crises had both prepared Canada well for such a crisis, and responded effectively as the crisis unfolded. But the very regulatory system that provided stability in recent years may also be at risk of becoming warped by its own success, with regulators so emboldened by the acclaim for their recent achievements that they overreach to ensure their track record remains unblemished in the future. The stunning collapse of a pair of western Canadian banks, a number of major Canadian trust companies and several insurance companies, as well as some other precarious near misses in the 1980s and 1990s, were a shock to the financial regulatory system, highlighting deficiencies that would be addressed with new regulations and, most notably, the creation of the Office of the Superintendent of Financial Institutions (OSFI. Canada’s centralized regulatory approach, through the OSFI and just four other major regulatory bodies, has proved both more elegant and effective than, for instance, the more complicated, more convoluted and more decentralized American financial-oversight system. But some regulated companies, insurers in particular, have long maintained that the concentration of power in Canada’s large banks has resulted in a one-size-fits-all regulatory approach that does not offer a relatively lighter burden for smaller institutions, potentially stifling growth. In other words, an over-emphasis on stability may be hampering market efficiency. Nor is there any economic evidence to shed light on whether those and other costs of regulating stability are

From Trial to Triumph: How Canada’s Past Financial Crises Helped Shape a Superior Regulatory System

Directory of Open Access Journals (Sweden)

Lawrie Savage

2014-05-01

Full Text Available As anyone paying attention during the 2008–2009 financial crisis is aware, the Canadian financial system weathered the storm uniquely well. Exactly why Canada’s system remained so comparatively stable, while so many other foreign systems broke down, is a question that remains largely unsettled. One explanation may be that the regulatory system that emerged from a very specific history of prior crises had both prepared Canada well for such a crisis, and responded effectively as the crisis unfolded. But the very regulatory system that provided stability in recent years may also be at risk of becoming warped by its own success, with regulators so emboldened by the acclaim for their recent achievements that they overreach to ensure their track record remains unblemished in the future. The stunning collapse of a pair of western Canadian banks, a number of major Canadian trust companies and several insurance companies, as well as some other precarious near misses in the 1980s and 1990s, were a shock to the financial regulatory system, highlighting deficiencies that would be addressed with new regulations and, most notably, the creation of the Office of the Superintendent of Financial Institutions (OSFI. Canada’s centralized regulatory approach, through the OSFI and just four other major regulatory bodies, has proved both more elegant and effective than, for instance, the more complicated, more convoluted and more decentralized American financial-oversight system. But some regulated companies, insurers in particular, have long maintained that the concentration of power in Canada’s large banks has resulted in a one-size-fits-all regulatory approach that does not offer a relatively lighter burden for smaller institutions, potentially stifling growth. In other words, an over-emphasis on stability may be hampering market efficiency. Nor is there any economic evidence to shed light on whether those and other costs of regulating stability are

FINANCIAL INSTABILITY HYPOTHESIS (FIH OF MINSKY: CONTEXTUALIZING THE ROLES OF ISLAMIC COMMERCIAL AND SOCIAL FINANCE

Directory of Open Access Journals (Sweden)

Ugi Suharto

2017-02-01

Full Text Available The main subject of this paper is to discuss some issues in Minsky’s Financial Instability Hypothesis (FIH and relate them with Islamic finance position in enhancing the stability of financial system. The methodology used in the paper is descriptive analysis. It describes a particular concept, namely the financial instability hypothesis and then analyses, applies and compares that concept with other concept, i.e. the Islamic finance concept. It is shown in the paper that Islamic finance, both in its commercial and social aspect, can play its role in stabilizing financial system. The significant contribution of the paper is by bringing together the hypothesis of Minsky with Islamic finance theory and practice. It should be stated here, however, that among the limitations of the paper is that the reference on Minsky’s point of view is mostly based on his brief article entitled “The Financial Instability Hypothesis” without referring to his vast writings on various topics directly or indirectly related to his notion of Financial Instability Hypothesis.   Keywords:  Financial stability, Islamic finance, Financial crisis, Deregulation, Riba, Gharar JEL Classification: A12, E44, E58, G18, G21

Integration of Financial Markets in Post Global Financial Crises and Implications for British Financial Sector: Analysis Based on A Panel VAR Model

OpenAIRE

Nasir, M; Du, M

2017-01-01

This study analyses the dynamics of integration among global financial markets in the context of Global Financial Crisis (2008) by employing a Panel Vector Autoregressive (VAR) model on the monthly data of nine countries and three markets from Jan 2003 to Oct 2015. It was found that there has been a shift in the association among the global financial markets since Global Financial Crisis (GFC).Moreover, the British financial sectors in Post-GFC world clearly showed a change in the association...

The EU Capital Markets Union and Financial Stability

Directory of Open Access Journals (Sweden)

Kravchuk Igor S.

2017-06-01

Full Text Available The aim of the article is to study the processes of formation of the EU Capital Markets Union in the context of their influence on stability of the markets and the financial system as a whole. In the course of analyzing the project for the building of a single capital market with respect to financial stability, there determined its positive aspects as well as threats and challenges associated with simplification of information requirements to the prospectus of public offering of securities, low liquidity and higher volatility of the equity markets of small and medium-sized businesses, reduction of the regulatory requirements to investment firms (securities traders, correction of prudential norms for infrastructure investments of banking institutions and insurance companies, introduction of a simple, transparent and standard securitization, a secondary market for distressed banking assets, and a potential spread of financial instability at cross-border investments in securities.

Monetary policy and financial (in)stability : An integrated micro-macro approach

NARCIS (Netherlands)

De Graeve, F.; Kick, T.; Koetter, M.; DeGraeve, F.

Evidence on central banks' twin objective, monetary and financial stability, is scarce. We suggest an integrated micro macro approach with two core virtues. First, we measure financial stability directly at the bank level as the probability of distress. Second, we integrate a microeconomic hazard

The stability of financial market networks

Science.gov (United States)

Yan, Xin-Guo; Xie, Chi; Wang, Gang-Jin

2014-08-01

We investigate the stability of a financial market network by measuring its topological robustness, namely the ability of the network to resist structural or topological changes. The closing prices of 710 stocks in the Shanghai Stock Exchange (SSE) from 2005 to 2011 are chosen as the empirical data. We divide the period into three sub-periods: before, during, and after the US sub-prime crisis. By monitoring the size of the clusters which fall apart from the network after removing the nodes (i.e., the listed companies in the SSE), we find that: i) the SSE network is sensitive to the nodes' failure, which implies that the network is unstable. ii) the SSE network before the financial crisis has the strongest robustness against the intentional topological damage; iii) the hubs (i.e., highly connected nodes) connect with each other directly and play a vital important role in maintaining SSE network's stability.

EFFECTS OF THE GLOBAL FINANCIAL CRISIS IN THE BANKING SYSTEM OF KOSOVO

OpenAIRE

Myrvete Badivuku-Pantina; Anera Alishani

2012-01-01

Financial crises are phenomena that happened before and continue to happen even nowadays. There were many financial crises in the last century, starting with the Great Depression of 1929 and continuing with other financial crisis, and it was believed that people would learn from their previous experiences and would not allow the crisis to happen again. But the financial crisis of 2007, created the impression that no one wanted to learn for the real causes of their occurrence and consequences,...

Financial Stability and Central Bank Governance

NARCIS (Netherlands)

Koetter, Michael; Roszbach, Kasper; Spagnolo, Giancarlo

2014-01-01

The financial crisis has ignited a debate about the appropriate objectives and the governance structure of Central Banks. We use novel survey data to investigate the relation between these traits and banking system stability focusing in particular on their role in micro-prudential supervision. We

Financial Distress Prediction of Iranian Companies Using Data Mining Techniques

Directory of Open Access Journals (Sweden)

Moradi Mahdi

2013-01-01

Full Text Available Decision-making problems in the area of financial status evaluation are considered very important. Making incorrect decisions in firms is very likely to cause financial crises and distress. Predicting financial distress of factories and manufacturing companies is the desire of managers and investors, auditors, financial analysts, governmental officials, employees. Therefore, the current study aims to predict financial distress of Iranian Companies. The current study applies support vector data description (SVDD to the financial distress prediction problem in an attempt to suggest a new model with better explanatory power and stability. To serve this purpose, we use a grid-search technique using 3-fold cross-validation to find out the optimal parameter values of kernel function of SVDD. To evaluate the prediction accuracy of SVDD, we compare its performance with fuzzy c-means (FCM.The experiment results show that SVDD outperforms the other method in years before financial distress occurrence. The data used in this research were obtained from Iran Stock Market and Accounting Research Database. According to the data between 2000 and 2009, 70 pairs of companies listed in Tehran Stock Exchange are selected as initial data set.

DIRECTIONS OF THE SMALL-SCALE ENTERPRISES FINANCIAL STABILITY GROTH IN THE REGION

Directory of Open Access Journals (Sweden)

A.Y. Makarova

2008-12-01

Full Text Available Directions of the small-scale business financial stability increase, focused on its economic power strengthening, are offered. They are connected with development of the external factors of financial stability and the internal factors including orientation of the small enterprises in strategic management on the company's value growth. Applicability of a balanced scorecard which fully reflects interrelation of small enterprises’ both financial and non-financial indicators of work to maintenance those small enterprises’ growth of cost and their embedding into the system of the economic power of state and large business is proved.

The Integral Index as a Means for Determining Financial Stability of a Small Hotel

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Ivchenko Liubov A.

2017-06-01

Full Text Available The aim of the article is to develop and substantiate a methodology for evaluating the integral index of financial stability of hotels. By analyzing scientific works of foreign and Ukrainian scientists, there studied different methods for evaluating the financial stability of enterprises that take into account factors affecting their economic activities. The advantages of using the integrated approach to evaluating and forecasting the financial condition of small hotels are identified. In the work there offered a method for evaluating the integral index of financial stability of a hotel based on the principles of qualimetry and simple regression analysis. The tree of properties of the integral index includes all coefficients that affect financial stability and are calculated from the financial statements of a hotel, as well as the probability of bankruptcy calculated by four models. It is justified that the combination of the qualimetric and regression analysis allows not only to obtain integral characteristics of the financial stability index of a hotel, but also to make quantitative evaluation of the average speed and direction of its dynamics. Given a sufficient number of statistical observations, the results obtained can be used to determine the interval for evaluating types of financial stability of a hotel and forecasting its integral index.

Existence crises of actual financial management systems

OpenAIRE

SVASTA Mihai

2009-01-01

The present financial management systems reflects only partially the economic reality and they are no longer able to act as an instrument for the management. It is absurd that an economy populated by business models based on 21st century technology to use financial management systems based mainly on the same principles formalised by Luca Paciolli in 1494. Therefore, one of the causes of the current economic crisis could be the lack of coordination between the evolution of the business models ...

FINANCIAL STABILITY OF THE UKRAINE NATIONAL SYSTEM OF PENSION INSURANCE

Directory of Open Access Journals (Sweden)

A. Khemii

2014-03-01

Full Text Available The system of pension insurance is a combination of created by the state legal, economic and organizational institutions and norms, providing financial support to citizens in the form of pensions. In the article analyzing the demographic situation and the condition of pension payments in the country today. In the terms of economic and social reforms, the level of financial stability the pension system is low. Therefore important is the analysis and exploring new methods to ensure financial stability of the Ukraine national system of pension insurance. The main institution of the national pension insurance is the National Pension Fund of Ukraine.

Commonalities in liquidity within size-based portfolios: What do we learn from the Asian and Russian financial crises?

OpenAIRE

Petitjean, Mikael; Beaupain, Renaud; Dauginet, Stéphanie

2009-01-01

Using data for 300 stocks listed quoted on the NYSE, we show that commonalities in liquidity within a given portfolio are dependent upon the market capitalization of the stocks that are included in the portfolio. We also show that financial crises have an impact on liquidity co-movements. This impact varies with the market capitalization of the stocks included in the portfolio.

Oil cartel and international financial stability

Energy Technology Data Exchange (ETDEWEB)

McKenzie, G

1976-06-01

For many years there has existed a debate among economists as to whether the problems of unemployment, inflation, and international economic adjustment are largely financial in nature or whether they are ''real''; i.e., arising from dislocations in commodity and labor markets. The correct position is that they are a bit of both. This is the viewpoint that provides the background for this paper, which examines the consequences of the recent petroleum price increases imposed by the major oil-exporting countries. On the one hand, the ''real'' implications are fairly obvious. First, petroleum products are used either directly or as fuels in virtually every commodity-production process. Higher input costs are therefore bound to lead to increased prices for most other commodities. Second, higher petroleum prices will lead (and are leading) to the use and/or search for viable substitutes. However, there have been several important financial implications as well. First, there has been a dramatic change in the pattern of domestic and international financial flows resulting from the rapid accumulation of new wealth by the oil-exporting countries. Second, there has been an important change in the nature of these flows with significant implications for the stability of domestic commodity and foreign exchange markets. This paper emphasizes the interaction of ''real'' and financial variables that has taken place as a result of the actions of the oil exporters.

Long-range dependence in returns and volatility of global gold market amid financial crises

Science.gov (United States)

Omane-Adjepong, Maurice; Boako, Gideon

2017-04-01

Using sampled historical daily gold market data from 07-03-1985 to 06-01-2015, and building on a related work by Bentes (2016), this paper examines the presence of long-range dependence (LRD) in the world's gold market returns and volatility, accounting for structural breaks. The sampled gold market data was divided into subsamples based on four global crises: the September 1992 collapse of the European Exchange Rate Mechanism (ERM), the Asian financial crisis of mid-1997, the Subprime meltdown of 2007, and the recent European sovereign debt crisis, which hit the world's market with varying effects. LRD test was carried-out on the full-sample and subsample periods using three semiparametric methods-before and after adjusting for structural breaks. The results show insignificant evidence of LRD in gold returns. However, very diminutive evidence is found for periods characterized by financial/economic shocks, with no significant detections for post-shock periods. Collectively, this is indicative that the gold market is less speculative, and hence could be somehow less risky for hedging and portfolio diversification.

Responding to the Housing and Financial Crises

DEFF Research Database (Denmark)

Scanlon, Kathleen; Lunde, Jens; Whitehead, Christine

2011-01-01

The long period of house price growth in markets across the world ended with the US and global financial crisis of 2007/08. The crisis and the consequent recession had profound effects on mortgage market actors – including households, institutions and governments – in most advanced economies......, whether or not they participated in this rapid house price growth. Many of the trends observed during the boom, especially the innovations in financial instruments, were reversed. This paper presents evidence on how mortgage markets and stakeholders responded in the initial period after the crash...

Victorian Financial Crises and their Implications for the Future

OpenAIRE

Kenneth N Kuttner

2010-01-01

Banking crises were a relatively common occurrence in 19th century England. Like the Federal Reserve today, the Bank of England struggled to quell panics by acting as the lender of last resort, while at the same time maintaining monetary stability. This article surveys the events leading up to and the Bank's response to the four post-1844 crises, highlights some of the similarities between the Victorian era panics and the 2007–08 crisis, and draws on the 19th century experience to illustrate ...

The role of financial groups in Russia's banking crisis

NARCIS (Netherlands)

Perotti, E.C.

1999-01-01

This article reviews the role of financial groups in financial crises, and then applies the lessons learnt to Russia though a detailed analysis of the ruble collapse, the GKO default and the banking crisis.

Financial Literacy: Empirical Sociological Approaches

Directory of Open Access Journals (Sweden)

Henye Livia Kovacsne

2015-05-01

Full Text Available The recent financial crises that started in the USA and spread all over Europe highlighted the importance of research in the field of financial culture. A variety of research projects pointed out that the general population’s financial literacy is lacking basic knowledge. The ever changing economic climate, demographic changes, tendencies in the financial processing sector and the acceleration in product innovation put considerable pressure on the everyday decision making process of a household. The overview of the international and national research on the subject proves that the improving of the population’s, especially the young people’s financial literacy is a priority both in leading economic countries and in Hungary, too. The idea of financial culture is as complex as the variety of research into the topic proves it. This article aims to point out the complicated nature of the notion and the variety of research that has been inserted into it.

Financial crises and monetary policy

NARCIS (Netherlands)

Goderis, B.V.G.

2005-01-01

In the last three decades, many countries and regions around the world have suffered from currency crises. This thesis investigates the causes of such crises and assesses the role of monetary policy as a tool to avoid them or limit the damage they impose. In addition, it studies the impact of the

FINANCIAL CRISIS FROM THE MACROECONOMIC LEVEL TO THE MICROECONOMIC LEVEL

OpenAIRE

SANDA GHEORGHE GABRIEL; ENEA CONSTANTA

2014-01-01

The current economic and financial crisis, beyond the problems it generates both at micro and macro level, should determine an adaptation of the mechanisms, institutions and monetary / financial policies to the real economy we are facing. The issue of financial crises is extremely complex, including a series of quantitative and qualitative factors, financial, economic, social, ethical, technological and human, which can intervene and influence the financial operations in a...

Speculative Bubbles and Financial Crises: A Neo-functionalist Approach

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José María García Blanco

2015-01-01

Full Text Available If economics tends to emphasize the role of irrational behaviour in the formation of the speculative bubble that caused the recent financial crisis, sociology tends to focus on the institutions and social structures that sustain the financial system, particularly the dense social networks formed by financial elites, which function as a socio-culturally closed circle leading to herd behaviour. This article proposes a different interpretation of this supposed herd behaviour, based on functional differentiation and how it fosters internal, second order observation. Modern markets are a particularly striking example of this, and especially financial ones in which self-referential closure is particularly intense, because they trade money, the medium that supports the self-reference of the economic system.

A cross-country perspective on the causes of the global financial crisis

NARCIS (Netherlands)

Claessens, S.; Dell'Ariccia, G.; Igan, D.; Laeven, L.; Caprio, G.; Beck, T.; Claessens, S.; Schmukler, S.L.

2013-01-01

The global financial crisis is rooted in a combination of factors common to previous financial crises and some new factors. The four features in common with other crises are (1) asset price increases that turned out to be unsustainable, (2) credit booms that led to excessive debt burdens, (3)

Malaysia; Financial Sector Stability Assessment

OpenAIRE

International Monetary Fund

2013-01-01

This assessment is a review of the financial environment of Malaysia. Like many other Asian countries, Malaysia experienced financial distress in the late 1990s, but the country’s policy reforms have moved it to a successful economy. A ten-year financial plan (2001–10) by Bank Negara Malaysia restructured the financial sector. Banks were well capitalized, household debts were strengthened, and securities and insurances were developed. Malaysia thus became the global center for Islamic finance...

Financial Stability and Interacting Networks of Financial Institutions and Market Infrastructures

NARCIS (Netherlands)

Léon, C.; Berndsen, R.J.; Renneboog, L.D.R.

2014-01-01

An interacting network coupling financial institutions’ multiplex (i.e. multi-layer) and financial market infrastructures’ single-layer networks gives an accurate picture of a financial system’s true connective architecture. We examine and compare the main properties of Colombian multiplex and

THE THEORY OF INTERNATIONAL FINANCIAL CONTAGION

Directory of Open Access Journals (Sweden)

Iulia LUPU

2012-12-01

Full Text Available Financial contagion is a complex and multivariate process, with no widely accepted definition and an accurate measurement methodology. Contagion became more and more the central idea of research studies because it is perceived as a problem, and often associated with financial crises. The reason for that international diversification of investment portfolios is applied to protect against country risk, is no longer valid, correlations between markets largely vanishing its benefits. In this article we intend to present the ways in which the subject of international financial contagion was approached.

Banks, markets, and financial stability

OpenAIRE

Eder, Armin; Fecht, Falko; Pausch, Thilo

2014-01-01

In a theoretical model of the Diamond-Dybvig style, in which deposit-taking banks and financial markets coexist, bank behavior is analyzed taking into account a positive ex-ante probability of a future financial crisis. We focus on the role of the interaction of market liquidity and banks' funding liquidity in the propagation of shocks in the financial system. Our findings suggest that in particular bank-dominated financial systems are prone to contagious bank runs due to asset price deterior...

From Finance Capitalism to Financialization

DEFF Research Database (Denmark)

Hansen, Per H.

2014-01-01

In this article I interpret 150 years of financial history with a focus on shifts in the role of finance in society. I argue that over time the role of finance has shifted twice from that of servant to that of master of society, and that this process has been driven by sense making through...... narratives that legitimized and shaped these changes. When finance became a master rent seeking, cultural capture and out-of control financial innovation resulted in financial and social instability. Finance as a master was the characteristic of finance capitalism from around 1900......–1931 and of financialization from around 1980 to today. Finance capitalism and financialization were enabled by a dominant narrative that legitimized the power of finance. The shifts in the role of finance happened when crises undermined the meaning of the existing narrative and created for a new narrative able to make sense...

FINANCIAL BALANCE - BASIC TOOL IN APPROACHING FINANCIAL DIAGNOSIS FOR FIRM VALUATION

OpenAIRE

Dorel BERCEANU; Nicolae SICHIGEA; Marcel DRĂCEA

2010-01-01

This paper addresses a very topical issue, namely the importance in assessing the company's financial accounts. Thus, after a brief role in evaluating company financial diagnosis and approaches related to the concept of financial balance, we presented the financial balance sheet in terms of logic building financial stability analysis. At the end of the paper were presented some conclusions.

Macroeconomic policy interaction: State dependency and implications for financial stability in UK: A systemic review

Directory of Open Access Journals (Sweden)

Muhammad Ali Nasir

2016-12-01

Full Text Available The association between economic and financial stabilities and influence of macroeconomic policies on the financial sector creates scope of active policy role in financial stability. As a contribution to the existing body of knowledge, this study has analysed the implications of macroeconomic policy interaction/coordination for financial stability, proxied by financial assets, i.e. equity and bonds price oscillation. The critical review and analysis of the existing literature on the subject suggests that there is also ample evidence of interdependence between monetary and fiscal policies and this interrelation necessitates coordination between them for the sake of financial stability. There is also a case for analysing the symmetry of financial markets responses to macroeconomic policy interaction. On methodological and empirical grounds, it is vital to test the robustness of policy recommendations to overcome the limitation of a single empirical approach (Jeffrey–Lindley’s paradox. Hence, the Frequentist and Bayesian approaches should be used in commentary manner. The policy interaction and optimal policy combination should also be analysed in the context of institutional design and major financial events to gain insight into the implications of policy interaction in the periods of stable economic and financial environments as well as period of financial and economic distress.

Dynamic Evolution of Financial Network and its Relation to Economic Crises

Science.gov (United States)

Gao, Ya-Chun; Wei, Zong-Wen; Wang, Bing-Hong

2013-02-01

The static topology properties of financial networks have been widely investigated since the work done by Mantegna, yet their dynamic evolution with time is little considered. In this paper, we comprehensively study the dynamic evolution of financial network by a sliding window technique. The vertices and edges of financial network are represented by the stocks from S&P500 components and correlations between pairs of daily returns of price fluctuation, respectively. Furthermore, the duration of stock price fluctuation, spanning from January 4, 1985 to September 14, 2009, makes us to carefully observe the relation between the dynamic topological properties and big financial crashes. The empirical results suggest that the financial network has the robust small-world property when the time evolves, and the topological structure drastically changes when the big financial crashes occur. This correspondence between the dynamic evolution of financial network and big financial crashes may provide a novel view to understand the origin of economic crisis.

Transmission investment and planning in deregulated market environment : a literature survey (part 1)

International Nuclear Information System (INIS)

Wen, F.; Wu, F.F.

2005-01-01

This paper is the first half of a 2-part paper that provided details of a comprehensive survey of issues related to transmission investment and expansion planning in the electricity market. The lack of adequate transmission capacity has played an important role in recent power crises, and deregulation has had a significant impact on the investment and planning process of transmission systems. The main objective of transmission investment is to meet load demands as cheaply as possible. In a deregulated market, there is no longer centrally coordinated planning of new generation. Transmission planning is generally not coordinated with generation planning. There is considerable uncertainty with regard to transmission capacity requirements due to long lead times for transmission construction. Generating plants and transmission lines are built according to investor assessments and private interests, and current transmission systems were not designed to handle supply and demand patterns in competitive markets. It was recommended that new transmission plans should meet reliability requirements while minimizing expected unserved energy. It was concluded that reliability criteria must be redefined to account for the fact that transmission systems are more stressed under deregulation. Two popular financial transmission rights were also discussed, notably (1) point-to-point financial transmission rights (FTR); and (2) financial flowgate rights (FGR)

Bye, Bye Financial Repression, Hello Financial Deepening: The Anatomy of a Financial Boom

OpenAIRE

João Manoel Pinho de Mello; Márcio Gomes Pinto Garcia

2011-01-01

Since the conquest of hyperinflation, with the Real Plan, in 1994, the Brazilian financial system has grown from early infancy to late adolescence. We describe the process of maturing with emphasis on the defining features of the Brazilian financial system over the last 20 years: 1) stabilization and the subsequent financial crisis; 2) universality of banks; 3) market segmentation through public lending; 4) institutional improvement. Further paraphrasing Díaz Alejandro (1984), we raise some h...

A Pseudo-Bayesian Model for Stock Returns In Financial Crises

Directory of Open Access Journals (Sweden)

Eric S. Fung

2011-12-01

Full Text Available Recently, there has been a considerable interest in the Bayesian approach for explaining investors' behaviorial biases by incorporating conservative and representative heuristics when making financial decisions, (see, for example, Barberis, Shleifer and Vishny (1998. To establish a quantitative link between some important market anomalies and investors' behaviorial biases, Lam, Liu, and Wong (2010 introduced a pseudo-Bayesian approach for developing properties of stock returns, where weights induced by investors' conservative and representative heuristics are assigned to observations of the earning shocks and stock prices. In response to the recent global financial crisis, we introduce a new pseudo-Bayesian model to incorporate the impact of a financial crisis. Properties of stock returns during the financial crisis and recovery from the crisis are established. The proposed model can be applied to investigate some important market anomalies including short-term underreaction, long-term overreaction, and excess volatility during financial crisis. We also explain in some detail the linkage between these market anomalies and investors' behavioral biases during financial crisis.

Advances in Financial Risk Management and Economic Policy Uncertainty: An Overview

NARCIS (Netherlands)

S.M. Hammoudeh (Shawkat); M.J. McAleer (Michael)

2014-01-01

markdownabstract__Abstract__ Financial risk management is difficult at the best of times, but especially so in the presence of economic uncertainty and financial crises. The purpose of this special issue on “Advances in Financial Risk Management and Economic Policy Uncertainty” is to highlight

Investments in the Brazilian electric sector and the financial crisis; Investimentos no setor eletrico brasileiro e a crise financeira mundial

Energy Technology Data Exchange (ETDEWEB)

Vela, Jorge Alberto Alcala [Centrais Eletricas Brasileiras (ELETROBRAS), Rio de Janeiro, RJ (Brazil). Dept. de Gestao de Ativos no Exterior; Oliveira, Andre Luis Cantuaria Cardoso [Centrais Eletricas Brasileiras (ELETROBRAS), Rio de Janeiro, RJ (Brazil). Dept. de Financas e Investimentos

2010-07-01

The electricity sector in addition to being a public utility, requires a substantial investment, explore natural resources and the basis of all production chains and consumption of our society. The dynamics of this sector goes beyond the individual performance of energy companies and will also interfere in matters of political, economic, social and environmental development of nations. The lack of sophistication and low level of development in credit derivatives financial systems in Brazil, both as a healthy situation of the accounts and balance sheets, the fruit of bitter experience in past crises are allowing a better resistance to weather the current crisis. But it is an important trading partner of Brazil, through various business financial economic crises that is affecting the U.S. economy and the world has also affected the economy of our country, but with less intensity. The econometric model used to study the investment to be initiated in 2010 by ELETROBRAS meets a correlation acceptable; this demonstrates that a well dependence exists between power and investment to the projects to be implemented. (author)

Guernsey; Financial System Stability Assessment-Update

OpenAIRE

International Monetary Fund

2011-01-01

Guernsey is a leading international insurance center in Europe. Its economy purely depends on the performance of the financial sector. As per the 2003 assessment under the Offshore Financial Center (OFC) program, it is found that the Guernsey Financial Services Commission (GFSC)’s powers have been strengthened in recent years and many recommendations of the 2003 Financial Sector Assessment Program (FSAP) have been implemented. The GFSC has developed a strategy for addressing banks' financial ...

Impact of Deregulation on Financial Sector Development in Nigeria ...

African Journals Online (AJOL)

The financial system in an economy is known to serve as the lubricant which facilitates the smooth running of the economy. The Nigeria financial sector has undergone several reforms since 1987 when the Structural Adjustment Programme was introduced. This paper investigates the impact of these reforms on the ...

Corporate Financial Stability and Change of Capital Availability as a Result of a Loss Event

Directory of Open Access Journals (Sweden)

Maria Gorczyńska

2016-04-01

Full Text Available The main purpose of the study is to present the parameters of financial stability of a company, as well as to show the direction of their potential changes as a result of a loss event. The following thesis was adopted: "Financial stability of a company is a necessary condition for constant, undisturbed development, mainly by ensuring access to external capital in the case when it is necessary to cover the adverse effects of loss events". This study aims at: defining financial stability, identifying financial stability parameters, indicating the potential changes of such parameters as a result of a loss event.

Basel III and prudent risk management in banking: Continuing the cycle of fixing past crises

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François Laurens

2012-09-01

Full Text Available Financial crises have had a significant impact on bank regulation and supervision. Reforms are often focussed on correcting past failings. Following the 2007 financial crisis, Basel III reforms have been introduced with a view to promote a more resilient banking sector and to improve the banking sector’s ability to absorb shocks arising from financial distress. A review of the Basel III reforms and the literature on the link between capital adequacy regulations and bank stability indicates that these regulations are unlikely to prevent the failure of banks resulting in systemic crises

Thailand in the Face of the 1997 Asian Crisis and the Current Financial Crisis

DEFF Research Database (Denmark)

Schmidt, Johannes Dragsbæk

2010-01-01

Interview about various aspects related to the impact of the financial crises 1997 and present on the Thai labor market, economy etc .......Interview about various aspects related to the impact of the financial crises 1997 and present on the Thai labor market, economy etc ....

Micro-prudentiality and financial stability

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Cristian Ionescu

2012-12-01

Full Text Available Given the high degree of importance of issues related to financial instability in modern economies, (financial, economic and social aspects, it is necessary the analysis of the microeconomic components that determine macroeconomic fluctuations, resulting in the visible financial instability. Thus, this paper aims to analyze the following aspects: financial fragility, as a measure of financial instability at the microeconomic level; micro-prudential regulation; microeconomic reform measures, which addresses problems related to capital, liquidity, risk management and supervision and market discipline. All these are integrated into the international Basel III framework of the Bank of International Settlements Regulations. In addition, the manner and the time of Basel III implementation of the capital and liquidity-related measures is very important. In addition, the paper aims to analyze the inter-connections and the compromises between capital and liquidity, trying to understand how the two are connected.

The financial crisis and securitization

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Ewa Szabłowska

2010-06-01

Full Text Available Securitization means the change of non-liquid assets into securities. This topic has become more popular, mainly due to the U.S. subprime mortgage crisis. In this article, an analysis is given of the current situation in financial markets and the changes, which were implemented from the first days of subprime crisis. Also mentioned is the impact the crisis has had on securitization development. Part of the article is devoted to the situation on the Polish financial market. It is quite a new market and it is susceptible to such crises. The Article presents the part played by securitization in the Polish financial market and the circumstances for its growth in the near future. It also covers the latest information related to financial market regulations, which could have direct or indirect impact on the quantity and value of securitization transactions.

THE EUROPEAN MECHANISM FOR FINANCIAL STABILITY AND THE EURO-PLUS PACT

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AUGUSTIN FUEREA

2012-05-01

Full Text Available The economic crisis that has affected countries from all continents has generated, among others, also a strong financial crisis, which in turn, has caused serious imbalances in the economic and financial environment of EU Member States.Under these circumstances, the Council, being in an exceptional situation, “outside the control of Member States”, as it itself states in the Preamble to Regulation No. 407/2010, considered necessary, “the immediate establishment of a stabilization mechanism at EU level in order to maintain the financial stability in the European Union”, mechanism that “would enable the Union to respond in a coordinated, rapid and effective way to the serious difficulties undergone by a certain Member State”

Policies and institutions for moderating deep recessions, debt crises and financial instabilities

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O’Hara Phillip Anthony

2013-01-01

Full Text Available This paper outlines a long-term policy and institutional framework for reducing the intensity of recessions, debt crises and financial instabilities, especially for the Core nations and areas that bore the brunt of the anomalies during 2008-2013. We argue that institutional changes need to be systemic, amounting to the construction of a new social structure of accumulation (SSA or mode of regulation (MOR, which we call an SSA of embedded communitarian liberalism. Five institutional spheres are introduced which are in need of systemic change, due to the entrenched contradictions and problems which the current set of institutions generate. These involve firstly institutions within the world-system of finance and production; secondly relating to finance versus industry; thirdly capital versus labor; fourthly state systems of production; and fifthly the interlinking of state, community and ecology.

Factors affecting financial stability of small and medium enterprises: A case study of emerging markets

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Nonhlanhla Mbatha

2017-02-01

Full Text Available Small and Medium Enterprises (SMEs play a significant role in the South African economy as they provide job opportunities to communities and contribute to the South African gross domestic product. However, the majority of small businesses lack financial skills, which results in the falsification of financial information and analysis and inaccurate financial reports leading to decline of confidence by investors and negative impact on stakeholders. Therefore, this study examines the critical factors that affect SME’s financial stability which in the long run result in the liquidation of SMEs. The study was descriptive and quantitative in nature, using questionnaires to collect data from a sample of one hundred and twenty (120 SMEs across the Durban area. The findings show that lack of understanding of financial reporting has a negative impact on the financial stability of the business. Also the lack of insufficient financial experience proved to have a negative impact on the financial stability of SMEs. The study recommends that a short accounting programme should be developed by government incubators to assist and provide owners and accounts staff of SMEs with practical experience in financial reporting in order to increase their level of understanding financial reporting processes.

THE HERD BEHAVIOR AND THE FINANCIAL INSTABILITY

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CRISTIAN IONESCU

2012-01-01

Full Text Available Given the international financial situation of the last 50 years, and considering the complexity and severity of the financial crises, it is important to study the episodes of financial instability, and especially to understand both operating mechanisms and propagation mechanisms. One endogenous mechanism of financial instability is the herd behavior, which may increase the volatility and the amplitude of any sub-part of the financial system. This paper aims to analyze this phenomenon, considering the behavior of the financial market participants, the role of information in the making decisions process, banking responsibility regarding the herd behavior. The paper also illustrates two examples of herd behavior (run bank and the "too many to fail" problem, and presents three herding measures, in an attempt to achieve a quantitative analysis of the phenomenon, besides the qualitative analysis exposed above.

BASEL III – A new approach to improve international financial stability

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Claudia Gabriela BAICU

2010-09-01

Full Text Available In its first part, the article highlights the factors standing at the basis of the modification of the general framework of development of the banking activity in the last decades and the main trends that manifested on the international banking market until the global financial crisis. Thenceforth, the main lessons learned from the global financial crisis for the regulation and supervision authorities are presented. The final part of the article concerns the Basel Committee answer to the global financial crisis, concretised in a reform programme regarding the regulatory framework of the banking activity. The improvements and news brought by the Basel III reform programme take into account the flaws revealed by the global financial crisis and have the purpose to strengthen the stability of the international financial system.

A SURVEY OF INTERNATIONAL FINANCIAL RISK MANAGEMENT SYSTEM

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SETHI Narayan

2013-12-01

Full Text Available Rising global competition, increasing deregulation, and introduction of innovative products have pushed financial risk management to the forefront of today's financial landscape. Identification of different types of risks and effective management of these risks in the international financial system would help to alleviate crisis, financial losses and also helpful to the long term success of all the financial institutions. The present study aims to analyze different types of risk management strategies and throws some light on challenges and opportunities regarding implementation of Basel-II in international financial system. The present paper also attempts to discuss the different methods and techniques used to measure financial risk management. There are three types of risk faced by all financial institutions: market risk, credit risk and operational risk. In commercial banking, credit risk is the biggest risk; in investment banking, its market risk; and in asset management, it’s operational risk.

The European Union, Financial Crises and the Regulation of Hedge Funds: A Policy Cul-de-Sac or Policy Window?

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David John Lutton

2008-11-01

Full Text Available A series of financial crises involving hedge funds has created a general perception that action needs to be taken. A number of key member states and political actors favour tighter regulation. Traditional bureaucratic theory suggests that the European Commission would seek to maximise this ‘policy window’, and yet there remains no single unified European Union (EU regulatory framework specifically targeting hedge funds. The nature of the regulatory regime, which has generally demanded a ‘light touch’ approach, means there are strict limits the EU’s ability to act. From an EU perspective, hedge fund regulation appears to be a policy cul-de-sac. However, the relationship between hedge funds and financial crisis is complex and less straightforward than is often portrayed. Hedge fund regulation cannot, however, be considered in isolation but should be viewed in the context of a wider programme to integrate European financial services markets. Viewed from this perspective, EU regulation is in fact changing the landscape of the hedge fund industry through a process of negative integration.

Uruguay; Financial System Stability Assessment

OpenAIRE

International Monetary Fund

2013-01-01

The buffers built in the aftermath of Uruguay’s 2002 banking crisis have shielded the financial sector from the effects of the global financial turmoil. Growth has been robust and the outlook continues to be favorable. However, inflation persists but capital inflows have improved, and policy measures have been taken in response. Uruguay exhibits no obvious signs of near-term domestic macrofinancial vulnerability. The external risks to the economy and the financial system come from a fragile g...

Some considerations on using monetary policy to promote financial stability

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Petria, N.

2010-12-01

Full Text Available The current period of crisis on credit markets has highlighted the crucial role of the behaviour of banks in the transmission mechanism of monetary policy. This paper summarises our considerations on how monetary policy, as the main instrument, acts in order to promote financial stability and to stabilize the banking system. Central banks have a variety of tools for implementing monetary policy, but the tool that has received the most attention in literature is the interest rate. We observe that the financial crisis that erupted in the summer of 2007 has refocused attention on other channels of monetary policy, notably the transmission of policy through the supply of credit and overall conditions in the capital markets. Monetary policy has important macroeconomic effects only to the extent that it moves financial market prices that really matter—like long-term interest rates, stock market values, and exchange rates.

Cohesiveness in financial news and its relation to market volatility.

Science.gov (United States)

Piškorec, Matija; Antulov-Fantulin, Nino; Novak, Petra Kralj; Mozetič, Igor; Grčar, Miha; Vodenska, Irena; Smuc, Tomislav

2014-05-22

Motivated by recent financial crises, significant research efforts have been put into studying contagion effects and herding behaviour in financial markets. Much less has been said regarding the influence of financial news on financial markets. We propose a novel measure of collective behaviour based on financial news on the Web, the News Cohesiveness Index (NCI), and we demonstrate that the index can be used as a financial market volatility indicator. We evaluate the NCI using financial documents from large Web news sources on a daily basis from October 2011 to July 2013 and analyse the interplay between financial markets and finance-related news. We hypothesise that strong cohesion in financial news reflects movements in the financial markets. Our results indicate that cohesiveness in financial news is highly correlated with and driven by volatility in financial markets.

Cohesiveness in Financial News and its Relation to Market Volatility

Science.gov (United States)

Piškorec, Matija; Antulov-Fantulin, Nino; Novak, Petra Kralj; Mozetič, Igor; Grčar, Miha; Vodenska, Irena; Šmuc, Tomislav

2014-01-01

Motivated by recent financial crises, significant research efforts have been put into studying contagion effects and herding behaviour in financial markets. Much less has been said regarding the influence of financial news on financial markets. We propose a novel measure of collective behaviour based on financial news on the Web, the News Cohesiveness Index (NCI), and we demonstrate that the index can be used as a financial market volatility indicator. We evaluate the NCI using financial documents from large Web news sources on a daily basis from October 2011 to July 2013 and analyse the interplay between financial markets and finance-related news. We hypothesise that strong cohesion in financial news reflects movements in the financial markets. Our results indicate that cohesiveness in financial news is highly correlated with and driven by volatility in financial markets. PMID:24849598

Measuring spill-over effects of foreign markets on the JSE before, during and after international financial crises

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Andre Heymans

2013-11-01

Full Text Available There is a large body of research that proves the co-movement of international stock markets over time. This co-movement manifests through various instruments ranging from stocks and bonds, to soft commodities and can be visualised as returns and volatility spill-over effects. During the most recent financial crisis, it was once again highlighted that no market is immune to spill-over effects from other international markets. By employing an aggregate-shock (AS model, returns and volatility spill-over effects of the Hang Seng, London, Paris, Frankfurt and New York stock markets to the JSE are confirmed. The findings also confirm the JSE All share index is directly affected through contagion by the returns of the economic area where the crisis originates. However, the results further confirm that South Africa has progressed in shielding its stock market against financial crises in recent times. These findings hold important implications for stock portfolio managers in South Africa.

Financial Stability In The Eurozone

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Zielińska Klaudia

2016-03-01

Full Text Available Financial stability inside the European Monetary Union (EMU is a trendy topic in most developed countries around the world. From the moment the EMU was brought to life, there was much speculation about its imperfections, inadequate management, and vulnerability. Some of them have turned out to be true, while others have been proved invalid. Nevertheless, the debt crisis has demonstrated inadequacies in the EMU’s structure and proved that a higher degree of integration is necessary in order to guarantee the robustness of the common currency and fully utilize its potential.

Financial crisis and crisis management in Sweden: Lessons for today

OpenAIRE

Jonung, Lars

2009-01-01

This paper gives an account of the Swedish financial crisis covering the period 1985-2000, dealing with financial deregulation and the boom in the late 1980s, the bust and the financial crisis in the early 1990s, the recovery from the crisis and the bank resolution policy adopted during the crisis. The paper focuses on three issues: the causes and consequences of the financial crisis, the policy response concerning bank resolution, and the applicability of the Swedish model of bank crisis man...

A Comparison of Global Financial Market Recovery after the 2008 Global Financial Crisis

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Foo Jennifer

2017-06-01

Full Text Available The Financial Crisis of 2007-2009 plunged countries into a Great Recession and focused the world’s attention on the global stock markets. The global contagion has a major impact on global stock markets, with the U.S. DJIA falling to 6,547.05 on March 9, 2009 from a high of 14,164.53 on October 9, 2007, with a loss of more than 54%. Other stock markets also had a precipitous drop during the financial crisis. However, some equity markets have recovered while others have not. This paper looks at how global markets compared in their recovery. This paper also investigates the advanced countries’ recovery relative to the emerging and developing countries in the aftermath of the financial crisis and their ability to climb back to the pre-financial crisis levels. Analysis is provided for 31 stock indexes from January 2005 to March 2013. In 2013 the majority of analysed stock markets recovered from the crises regardless of if they belong to the group of developed or emerging markets.

Financial sector reforms and investment efficiency in South Africa ...

African Journals Online (AJOL)

The effect of financial liberalization on investment in sub-Saharan Africa countries has drawn much attention in the recent literature. The major thrust of the literature has been to understand the mechanism by which interest rate deregulation on one hand and elimination of other forms of financial repression on the other ...

The current international financial crisis: how much is new?

OpenAIRE

Steven B. Kamin

1999-01-01

The paper surveys a broad array of data to compare the scope and impact of three emerging-market financial crises: the debt crisis of the 1980s, the Mexican financial crisis of 1994-95, and the current international financial crisis. While certain conventional views regarding the three episodes are supported by the data examined in this paper, we find that in several respects, the current crisis is more similar to prior emerging-market crisis episodes than is commonly believed.

Effects of the financial crisis on the wealth distribution of Korea's companies

Science.gov (United States)

Lim, Kyuseong; Kim, Soo Yong; Swanson, Todd; Kim, Jooyun

2017-02-01

We investigated the distribution functions of Korea's top-rated companies during two financial crises. A power-law scaling for rank distribution, as well as cumulative probability distribution, was found and observed as a general pattern. Similar distributions can be shown in other studies of wealth and income distributions. In our study, the Pareto exponents designating the distribution differed before and after the crisis. The companies covered in this research are divided into two subgroups during a period when the subprime mortgage crisis occurred. Various industrial sectors of Korea's companies were found to respond differently during the two financial crises, especially the construction sector, financial sectors, and insurance groups.

ENTREPRENEURSHIP IN TIMES OF ECONOMIC AND FINANCIAL CRISES, METHODS OF ADAPTATION AND SURVIVAL.

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Radu Oprea

2011-12-01

Full Text Available This paper shows the main results of a research activity conducted in the South – East region of Romania during November 2009, over 117 small and medium-sized enterprises. The results help to better explain some of the social problems that have been generated in the region as a snow ball effect, due to the economic and financial crisis. The research has revealed the following:The majority of the employees of the companies that were interviewed do not participate in training courses related to project management and personal development. However, company administrators consider that such courses are useful to increase competitiveness in times of economic and financial crises. Personnel under 40 years of age suffer from a lack of professional training and dedication to job requirements. Companies have expressed an interest in accessing European Union funding. However, they do not have complete information that would allow them to start a project and finalize it. This lack of information is mainly due to lack of access to specialists who would write the projects and submit them. The majority of entrepreneurs consider they cannot write the projects themselves but on the other hand they do not have access to consulting companies or other organizations that could help them. Their main information source is the mass-media.As a result, companies have adjusted to the effects of the economic crisis, diminishing their activity and laying off people, decreasing the running expenses and stopping investing in their development.

The Relationship Between Accounting Practices and Effects of Financial Crisis in Turkey: A Case Study on an Oil Company

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İsmail Erkan Çelik

2016-02-01

Full Text Available Many reasons lie at the base of all financial crises from the past to the present. If we take into consideration the 2008 subprime mortgage crisis, the only reason cannot be mortgage loans. But the mortgage issue continued to advance and created several other problems. Definitely, the source of mortgage loans problem also had many roots. One of the reasons was the lack of correct use of accounting principles and auditing. This is a strong proof and indicator that, there are many accounting based reasons behind the occurrence of the financial crises. Many examples can be given showing moving away from the basic principles of accounting rules and the general accounting concepts. Moreover, institutions being not fully independent, running creative accounting practices, having problems with fair valuation and transparency issues, presenting unreal financial reports, and sharing misleading audit reports are all related to financial crises.Furthermore, specific businesses and people abuse accounting rules, standards and related legislation for the sake of their own interests. Accounting and finance history has shown us that, even audit institutions, credit institutions and rating agencies are getting unfair advantages and generating unethical cash by making intentional accounting and finance errors, which is actually categorized as fraud.The aim of this study is to analyze financial crises and to determine if accounting practices have any relationship with financial crises. The research investigated an oil company’s financial and operational indicators before and after the 2008 financial crises with related tables and figures. Also, an interview was run with the company’s accounting officer. Based on the statements of firm’s accounting officer, correct accounting practices defended firm from several negative effects of the 2008 financial crisis.

Fiscal and Financial Stability in Romania - An Overview

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Florin OPREA

2013-10-01

Full Text Available The recent financial crisis has seriously shaken economies around the world, and raised serious doubts about the long-term viability of the public policies to remedy market imperfections. The effect has been pronounced for Romania, a newly transitioned country with a fragile market economy due to political, economic and social consequents. This paper examines the correlation between fiscal policy and financial stability in Romania in the period from 1990 to 2011. Specifically, we analyze the country’s main monetary and fiscal policy decisions and their associations with macro-economic variables, highlighting the requirements for a sustainable macro-economic policy and whether such requirements have been met in Romania. Based on the results, we further outline recommendations to improve Romania’s public policy initiatives, considering the specific correlations between monetary and fiscal policies. The results for the period under study indicate that fiscal and monetary policies promoted in Romania have not been consistently harmonized, at times lacking necessary mutual support, or even generating conflicting outcomes favorable to the manifestation of fiscal and financial instability.

Does competition improve financial stability of the banking sector in ASEAN countries? An empirical analysis.

Science.gov (United States)

Noman, Abu Hanifa Md; Gee, Chan Sok; Isa, Che Ruhana

2017-01-01

This study examines the influence of competition on the financial stability of the commercial banks of Association of Southeast Asian Nation (ASEAN) over the 1990 to 2014 period. Panzar-Rosse H-statistic, Lerner index and Herfindahl-Hirschman Index (HHI) are used as measures of competition, while Z-score, non-performing loan (NPL) ratio and equity ratio are used as measures of financial stability. Two-step system Generalized Method of Moments (GMM) estimates demonstrate that competition measured by H-statistic is positively related to Z-score and equity ratio, and negatively related to non-performing loan ratio. Conversely, market power measured by Lerner index is negatively related to Z-score and equity ratio and positively related to NPL ratio. These results strongly support the competition-stability view for ASEAN banks. We also capture the non-linear relationship between competition and financial stability by incorporating a quadratic term of competition in our models. The results show that the coefficient of the quadratic term of H-statistic is negative for the Z-score model given a positive coefficient of the linear term in the same model. These results support the non-linear relationship between competition and financial stability of the banking sector. The study contains significant policy implications for improving the financial stability of the commercial banks.

Identifying States of a Financial Market

Science.gov (United States)

Münnix, Michael C.; Shimada, Takashi; Schäfer, Rudi; Leyvraz, Francois; Seligman, Thomas H.; Guhr, Thomas; Stanley, H. Eugene

2012-09-01

The understanding of complex systems has become a central issue because such systems exist in a wide range of scientific disciplines. We here focus on financial markets as an example of a complex system. In particular we analyze financial data from the S&P 500 stocks in the 19-year period 1992-2010. We propose a definition of state for a financial market and use it to identify points of drastic change in the correlation structure. These points are mapped to occurrences of financial crises. We find that a wide variety of characteristic correlation structure patterns exist in the observation time window, and that these characteristic correlation structure patterns can be classified into several typical ``market states''. Using this classification we recognize transitions between different market states. A similarity measure we develop thus affords means of understanding changes in states and of recognizing developments not previously seen.

Identifying states of a financial market.

Science.gov (United States)

Münnix, Michael C; Shimada, Takashi; Schäfer, Rudi; Leyvraz, Francois; Seligman, Thomas H; Guhr, Thomas; Stanley, H Eugene

2012-01-01

The understanding of complex systems has become a central issue because such systems exist in a wide range of scientific disciplines. We here focus on financial markets as an example of a complex system. In particular we analyze financial data from the S&P 500 stocks in the 19-year period 1992-2010. We propose a definition of state for a financial market and use it to identify points of drastic change in the correlation structure. These points are mapped to occurrences of financial crises. We find that a wide variety of characteristic correlation structure patterns exist in the observation time window, and that these characteristic correlation structure patterns can be classified into several typical "market states". Using this classification we recognize transitions between different market states. A similarity measure we develop thus affords means of understanding changes in states and of recognizing developments not previously seen.

The impact of financial globalization and financialization on the economy in the current crisis through banking corporate governance

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Juan Antonio Azkunaga

2013-10-01

Full Text Available This work analyzes the role of governance of financial entities in the current crisis. Neoliberal economic policies, deregulation and liberalization have characterized financial globalization, giving rise to the financialization of the economy. This paper, using the analysis-synthesis method, shows that the corporate governance of entities has adapted to the new social environment under the influence of the interests of the investors. The results of this paper suggest the need to monitor the over-emphasis on the maximization of short-term shareholder value without relativizing the risk taken to achieve it, as such, the emphasis on short-term shareholder value is considered a crucial contributing factor to the present crisis.

Correlation of financial markets in times of crisis

Science.gov (United States)

Sandoval, Leonidas; Franca, Italo De Paula

2012-01-01

Using the eigenvalues and eigenvectors of correlations matrices of some of the main financial market indices in the world, we show that high volatility of markets is directly linked with strong correlations between them. This means that markets tend to behave as one during great crashes. In order to do so, we investigate financial market crises that occurred in the years 1987 (Black Monday), 1998 (Russian crisis), 2001 (Burst of the dot-com bubble and September 11), and 2008 (Subprime Mortgage Crisis), which mark some of the largest downturns of financial markets in the last three decades.

Can a return to Glass-Steagall provide financial stability in the US financial system?

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Jan Kregel

2010-01-01

Full Text Available In the immediate aftermath of the current financial crisis in the United States the response has been to resolve small and medium size banks, while large banks experiencing financial trouble have been given both direct and indirect government support. This, however, has resulted in a number of larger banks absorbing smaller ones, creating an even smaller number of even larger banks that dominate the financial system. This article deals first with a comparison of the problems created by “too big to fail†financial institutions. The second section deals with the possible restoration of Glass-Steagall type legislation as a means of restoring single-function financial institutions. It concludes that alternatives to separation of functions will have to be found to deal with multifunction financial institutions since most lending activity requires securities markets activities.

Does competition improve financial stability of the banking sector in ASEAN countries? An empirical analysis

Science.gov (United States)

Gee, Chan Sok; Isa, Che Ruhana

2017-01-01

This study examines the influence of competition on the financial stability of the commercial banks of Association of Southeast Asian Nation (ASEAN) over the 1990 to 2014 period. Panzar-Rosse H-statistic, Lerner index and Herfindahl-Hirschman Index (HHI) are used as measures of competition, while Z-score, non-performing loan (NPL) ratio and equity ratio are used as measures of financial stability. Two-step system Generalized Method of Moments (GMM) estimates demonstrate that competition measured by H-statistic is positively related to Z-score and equity ratio, and negatively related to non-performing loan ratio. Conversely, market power measured by Lerner index is negatively related to Z-score and equity ratio and positively related to NPL ratio. These results strongly support the competition-stability view for ASEAN banks. We also capture the non-linear relationship between competition and financial stability by incorporating a quadratic term of competition in our models. The results show that the coefficient of the quadratic term of H-statistic is negative for the Z-score model given a positive coefficient of the linear term in the same model. These results support the non-linear relationship between competition and financial stability of the banking sector. The study contains significant policy implications for improving the financial stability of the commercial banks. PMID:28486548

Comprehensive assessment of firm financial performance using financial ratios and linguistic analysis of annual reports

OpenAIRE

Renáta Myšková; Petr Hájek

2017-01-01

Indicators of financial performance, especially financial ratio analysis, have become important financial decision-support information used by firm management and other stakeholders to assess financial stability and growth potential. However, additional information may be hidden in management communication. The article deals with the analysis of the annual reports of U.S. firms from both points of view, a financial one based on a set of financial ratios, and a linguistic one based on the anal...

Exchange Rate Exposure Management: "Speculation" in Non-Financial Companies

DEFF Research Database (Denmark)

Aabo, Tom

"Speculation" in non-financial companies in relation to exchange rate exposure management constitutes one of the contributing factors behind corporate (or more widespread) crises. Deviations from benchmark positions constitute speculation. An empirical study of Danish non-financial companies finds...... that the larger the company (ability) and the larger its relative sale on foreign markets (relevance), the more likely the company will be to benchmark its exchange rate exposures. However, at the same time the very same factors (size and foreign sale) lead to more extensive speculation. Financial solvency (value...

THE IMPACT OF THE FOREIGN CAPITAL BANKS ON ENSURING FINANCIAL STABILITY ON LONG TERM

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Isac\tBORS

2015-06-01

Full Text Available The present study is focusing on analysing the role played by the foreign banks within the national and international banking system as well the impact the foreign banks have on the autochthon banking system, on the financial activity, on the real economy and on the financial stability on long terms. The research conducted highlights the fact that along the positive impact on the banking system and on the economy of the host country, generated by their quality as vectors of mobilizing and directioning the international financial flows towards the host country, there can also be considered a negative impact. The study shows that the impact of the negative effects, that have as main cause the reversibility of the international financial flows, depends, on a great extent, on the specific conditions of the host country, on the characteristics of the foreign banks, but mostly, by the share held by the foreign countries within the framework of the host banking system. Starting from the role played by the capitalization of the banking system to ensure financial stability, the research made on Romania’s case shows both, the positive effects generated by the presence of the foreign banks and also, their vulnerability in front of this excessive dependence on the foreign capital induced by this presence. The solution to reduce this dependence can only come from the autochthon capital direction whose mobilization may countervail the gap made by the foreign banks and, by surceasing the process of financial disintermediation, to ensure the maintenance of the financial stability on long term.

Global financial reform since 2008: Achievements and shortcomings

Directory of Open Access Journals (Sweden)

Šoškić Dejan

2015-01-01

Full Text Available The global financial crisis that started in the U.S. had an immediate spillover to the rest of the world financial markets. Next, a decrease in real economic output throughout the developed world occurred simultaneously with high bailout costs for the salvaging of banks and other financial institutions. This vicious combination was at the core of the bank-sovereign interdependence and the sovereign debt crisis of the eurozone. As early as 2008, the G20 announced a thorough global reform agenda with an aim to tackle the root causes of the crises and to transform the system of global financial regulation. Some important reform steps have been made; still, more than six years on, the job is not finished. Where are we in terms of global financial reform, and are we close to creating a more secure global financial system significantly less prone to crisis and bailouts with taxpayers’ money? [Projekat Ministarstva nauke Republike Srbije, br. 179005: Risks of Financial Institutions and Markets in Serbia - A Microeconomic and Macroeconomic Approach

The new financial architecture: from substantive to procedural rules

Directory of Open Access Journals (Sweden)

Mario Sarcinelli

2004-12-01

Full Text Available The new international financial architecture is investigated through the works of leading American economists, the Cologne G7 decisions, the implementing work of the IMF (and the World Bank. However, the Washington-consensus policies and the definition of standards and codes have not avoided foreign exchange, banking and debt crises, the therapy of which has been hotly contested as ineffective or unduly harsh. Many critics have proposed to transform the IMF radically. Although no such reform has taken place, the institution set up at Bretton Woods to look after the fixed exchange rate system with substantive rules has turned into a sort of supervisor of macroeconomic, structural and, above all, financial policies aiming to ensure stability through procedural rules. The latter are the product of many institutions and organisations with or without legitimacy, which makes the international monetary andfinancial system ever more dependent on soft law.

A atuação do Fed antes e depois do estouro da bolha imobiliária: discricionariedade e mandato de bancos centrais em contexto de desregulamentação financeira The Fed's actions before and after the housing bubble burst: discretion and mandate of central banks in an environment of financial deregulation

Directory of Open Access Journals (Sweden)

Olívia Bullio

2011-08-01

, the US Central Bank is a "prisoner" of these thesis and of the financial interests that help it sustain them: the thesis that the financial market's deregulation benefits the entire society inhibited interventionist actions that would have restrained the new financial instruments in the housing market and the thesis that the main goal of the Monetary Authority should be price stability contributed to the leniency with the increasing risks in the financial markets.

Development of a methodology of evaluation of financial stability of commercial banks

Directory of Open Access Journals (Sweden)

Brauers Willem Karel M.

2014-01-01

Full Text Available The field of evaluation of financial stability of commercial banks, which emanates from persistent existence of financial crisis, induces interest of researchers for over a century. The span of prevailing methodologies stretches from over-simplified risk-return approaches to ones comprising large number of economic variables on the micro- and/or macro-economic level. Methodologies of rating agencies and current methodologies reviewed and applied by the ECB are not intended for reducing information asymmetry in the market of commercial banks. In the paper it is shown that the Lithuanian financial system is bankbased with deposits of households being its primary sources, and its stability is primarily depending on behavior of depositors. A methodology of evaluation of commercial banks with features of decreasing information asymmetry in the market of commercial banks is being developed by comparing different MCDA methods.

Phases of Recognition and Management of Financial Crisis in Public Organizations.

Science.gov (United States)

Jones, L. R.

Based in part on interviews conducted in 32 municipalities, this paper is intended to provide information to public managers, policy analysts, and others on methods for improving the management of retrenchment. A model summarizes how public organizations recognize and attempt to manage financial crises and prolonged financial stress. Some cutback…

Fiscal Policy Problems Under Conditions Of Financial Liberalization

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Valentina Urazayeva

2014-01-01

Full Text Available The article under the title deals with the difficulties in pursuing national fiscal policy in conditions of international financial liberalization. The author analyzes the nature of liberalization of international capital flows and its positive and negative consequences for the economies of the countries which participate in global capital movement. The author especially highlights the fact that international financial liberalization often leads to economic crises and what is even more important to their rapid spread between countries due to their growing financial interdependence. The author distinguishes two groups of fiscal policy problems in conditions of international financial liberalization. The first group includes problems arising due to quick spread of the crises due to eliminating restrictions on crossborder capital flows. These are reduction in taxes and at the same time increase in budget spending, which often happens unexpectedly and substantially impedes fiscal policy. To illustrate these points the author refers to the statistics on Spain, the USA and the OECD as a whole. Moreover countries face another range of problems regardless of the business cycle phase. In the short term it is the necessity of large scale structural economic reforms to achieve the required level of financial liberalization, which often is a heavy burden on the state budget. In the long term the attention is paid to the problem of tax competition between countries, which affects the instruments of fiscal policy. The author notes that the negative consequences of global financial liberalization are relevant not only for recipient countries but for donor countries as well and emphasizes such a burning issue as "capital flight".

FISCAL POLICY PROBLEMS UNDER CONDITIONS OF FINANCIAL LIBERALIZATION

Directory of Open Access Journals (Sweden)

Valentina Urazayeva

2014-01-01

Full Text Available The article under the title deals with the difficulties in pursuing national fiscal policy in conditions of international financial liberalization. The author analyzes the nature of liberalization of international capital flows and its positive and negative consequences for the economies of the countries which participate in global capital movement. The author especially highlights the fact that international financial liberalization often leads to economic crises and what is even more important to their rapid spread between countries due to their growing financial interdependence. The author distinguishes two groups of fiscal policy problems in conditions of international financial liberalization. The first group includes problems arising due to quick spread of the crises due to eliminating restrictions on crossborder capital flows. These are reduction in taxes and at the same time increase in budget spending, which often happens unexpectedly and substantially impedes fiscal policy. To illustrate these points the author refers to the statistics on Spain, the USA and the OECD as a whole. Moreover countries face another range of problems regardless of the business cycle phase. In the short term it is the necessity of large scale structural economic reforms to achieve the required level of financial liberalization, which often is a heavy burden on the state budget. In the long term the attention is paid to the problem of tax competition between countries, which affects the instruments of fiscal policy. The author notes that the negative consequences of global financial liberalization are relevant not only for recipient countries but for donor countries as well and emphasizes such a burning issue as "capital flight".

Uganda; Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Monetary and Financial Policy Transparency, Banking Supervision, Securities Regulation, and Payment Systems

OpenAIRE

International Monetary Fund

2003-01-01

This paper presents findings of Uganda’s Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on Monetary and Financial Policy Transparency, Banking Supervision, Securities Regulation, Insurance Regulation, Corporate Governance, and Payment Systems. The banking system in Uganda, which dominates the financial system, is fundamentally sound, more resilient than in the past, and currently poses no threat to macroeconomic stability. A major disruption ...

MERGER AND ACQUISITION IN THE FINANCIAL SERVICES INDUSTRY

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Éva PINTÉR

2011-01-01

Full Text Available The paper analyses the driving forces of the convergence in the financial sector, focused on banking and insurance companies, in terms of strategic cross-sector and cross-border mergers and acquisitions (M As. New tendencies such globalization, integration, disintermediation and deregulation give the basis for new dimensions in the financial services industry. Based on the data, the banking industry has experienced an enormous level of consolidation as M As. We find that the penetration process, so the entry into insurance services industry is mostly driven by banks. We analyse whether this risky strategic process is beneficial or necessary in the financial services industry.

Deregulation and the Alberta experience : the implications for Ontario

Energy Technology Data Exchange (ETDEWEB)

Spearman, C. [Industrial Association of Southern Alberta, Lethbridge, AB (Canada)

2002-07-01

The government of Alberta deregulated its electric power industry to introduce industry structure and regulatory reforms that would promote competitive electricity prices. The objective was to ensure fairness for customers and generating facilities. A graph depicting power pool prices shows the reality of soaring prices at the onset of deregulation in Alberta. Today, there remains uncertainty in the development of retail choice, additional rate riders, new generation, transmission expansion, other jurisdictions and future prices. Consumers are still poorly equipped to make decisions and farmers have no means of protection from fluctuating electricity prices. They see deregulation as a complete failure because costs are up and benefits are nowhere to be seen. Ontario can learn from the Alberta experience by adopting the recommendations to set financial penalties for incompetence, financial compensation to customers for errors, and to be fully ready with systems tested ahead of deregulation. Anticipated customer benefits should be clearly identified in advance. The future electric power industry in Ontario needs vision, stability, a cohesive plan, and leadership devoid of complacency. 1 fig.

Deregulation and the Alberta experience : the implications for Ontario

International Nuclear Information System (INIS)

Spearman, C.

2002-01-01

The government of Alberta deregulated its electric power industry to introduce industry structure and regulatory reforms that would promote competitive electricity prices. The objective was to ensure fairness for customers and generating facilities. A graph depicting power pool prices shows the reality of soaring prices at the onset of deregulation in Alberta. Today, there remains uncertainty in the development of retail choice, additional rate riders, new generation, transmission expansion, other jurisdictions and future prices. Consumers are still poorly equipped to make decisions and farmers have no means of protection from fluctuating electricity prices. They see deregulation as a complete failure because costs are up and benefits are nowhere to be seen. Ontario can learn from the Alberta experience by adopting the recommendations to set financial penalties for incompetence, financial compensation to customers for errors, and to be fully ready with systems tested ahead of deregulation. Anticipated customer benefits should be clearly identified in advance. The future electric power industry in Ontario needs vision, stability, a cohesive plan, and leadership devoid of complacency. 1 fig

Market-based approach to financial architecture

NARCIS (Netherlands)

Underhill, G.R.D.; Caprio, G.; Beck, T.; Claessens, S.; Schmukler, S.L.

2013-01-01

The institutions of financial governance are central to the prospects for financial stability. Without sound regulatory and supervisory institutions, herd behavior and market failure looms large in a liberal financial system. Cross-border and cross-sectoral financial market integration exacerbates

An analysis of the early-warning system in emerging markets for reducing the financial crisis

Science.gov (United States)

Shen, Xiangguang; Song, Xiaozhong

2009-07-01

The large number of financial crises in emerging markets over the past ten years has left many observers, both from academia and financial institutions, puzzled by an apparent lack of homogenous causal relations between endogenous economic variables and the bursting of large financial shocks. The frequency of financial crises in the last 20 years can be attributed to the lack of a comprehensive theory of financial regulation to guide policy makers. Existing theories fail to define the range of regulatory models, the causes of regulatory failure, and how to measure and prevent it. Faulty design of regulatory models, and the lack of ongoing performance monitoring incorporating early warning systems, is disrupting economic and social development. The main aim of this article is to propose an early warning system (EWS) which purposes issuing warning signal against the possible financial crisis in the emerging market, and makes the emerging market survived the first wave of the crisis be able to continue their operation in the following years.

Asymmetric Lévy flight in financial ratios.

Science.gov (United States)

Podobnik, Boris; Valentinčič, Aljoša; Horvatić, Davor; Stanley, H Eugene

2011-11-01

Because financial crises are characterized by dangerous rare events that occur more frequently than those predicted by models with finite variances, we investigate the underlying stochastic process generating these events. In the 1960s Mandelbrot [Mandelbrot B (1963) J Bus 36:394-419] and Fama [Fama EF (1965) J Bus 38:34-105] proposed a symmetric Lévy probability distribution function (PDF) to describe the stochastic properties of commodity changes and price changes. We find that an asymmetric Lévy PDF, L, characterized by infinite variance, models several multiple credit ratios used in financial accounting to quantify a firm's financial health, such as the Altman [Altman EI (1968) J Financ 23:589-609] Z score and the Zmijewski [Zmijewski ME (1984) J Accounting Res 22:59-82] score, and models changes of individual financial ratios, ΔX(i). We thus find that Lévy PDFs describe both the static and dynamics of credit ratings. We find that for the majority of ratios, ΔX(i) scales with the Lévy parameter α ≈ 1, even though only a few of the individual ratios are characterized by a PDF with power-law tails X(i)(-1-α) with infinite variance. We also find that α exhibits a striking stability over time. A key element in estimating credit losses is the distribution of credit rating changes, the functional form of which is unknown for alphabetical ratings. For continuous credit ratings, the Altman Z score, we find that P(ΔZ) follows a Lévy PDF with power-law exponent α ≈ 1, consistent with changes of individual financial ratios. Estimating the conditional P(ΔZ|Z) versus Z, we demonstrate how this continuous credit rating approach and its dynamics can be used to evaluate credit risk.

Globalization, financial capitalism, and corporate social responsibility: Structural tensions

OpenAIRE

David Barbosa Ramírez; Christian Medina López; Myriam Vargas López

2014-01-01

Globalization and financial capitalism keep a synergy in a global context whose problems such as environmental degradation, social inequity, economic crises and corruption are intensified. Corporate Social Responsibility emerges as a mechanism that seeks to mitigate some of these problems, although its effectiveness and impact today are challenged. The system which globalization, financial capitalism and social responsibility are a part of, is currently facing a number of structural tensions ...

Financial history and financial economics

OpenAIRE

Turner, John D.

2014-01-01

This essay looks at the bidirectional relationship between financial history and financial economics. It begins by giving a brief history of financial economics by outlining the main topics of interest to financial economists. It then documents and explains the increasing influence of financial economics upon financial history, and warns of the dangers of applying financial economics unthinkingly to the study of financial history. The essay proceeds to highlight the many insights that financi...

A Cacophony of Crises

DEFF Research Database (Denmark)

Schmidt, Johannes Dragsbæk

2010-01-01

Abstract A cacophony of crises challenges neoliberalism and marks a fundamental reversal in capitalism itself. This is a systemic failure of the capitalist mode of production to renovate and renew itself through a multiplicity of environmental and resource crises and the financial crises which has...

International financial markets and development

Directory of Open Access Journals (Sweden)

Peter Wahl

2009-11-01

Full Text Available The current financial crisis has not come about by chance. It is the result of a system that has emerged over the last 30 years and which Keynes may well have called the ‘casino economy’. The dominance of finance over real economy characterises the financial crisis, while finance itself is dominated by the all-encompassing target of maximum profit at all times. Other aims of economic activity such as job creation, social welfare and development have fallen by the wayside. In response, new actors are surfacing, e.g. the institutional investor (hedge funds, private equity funds, etc., while new instruments are leading to highly leveraged and destabilising derivatives. The casino system has been promoted by governments and intergovernmental institutions to liberalise and deregulate financial markets. Although developing countries have not participated in the casino system, they have been suffering most from the spill-over into the real economy. The main lesson learnt is that the casino has to be closed.

Contagion Effect of Natural Disaster and Financial Crisis Events on International Stock Markets

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Kuo-Jung Lee

2018-03-01

Full Text Available In the contemporary world bustling with global trade, a natural disaster or financial crisis in one country (or region can cause substantial economic losses and turbulence in the local financial markets, which may then affect the economic activities and financial assets of other countries (or regions. This study focuses on the major natural disasters that occurred worldwide during the last decade, especially those in the Asia–Pacific region, and the economic effects of global financial crises. The heteroscedasticity bias correlation coefficient method and exponential general autoregressive conditional heteroscedasticity model are employed to compare the contagion effect in the stock markets of the initiating country on other countries, determining whether economically devastating factors have contagion or spillover effects on other countries. The empirical results indicate that among all the natural disasters considered, the 2008 Sichuan Earthquake in China caused the most substantial contagion effect in the stock markets of neighboring Asian countries. Regarding financial crises, the financial tsunami triggered by the secondary mortgage fallout in the United States generated the strongest contagion effect on the stock markets of developing and emerging economies. When building a diversified global investment portfolio, investors should be aware of the risks of major natural disasters and financial incidents.

Brazil: improved environmental policy in spite of the financial crisis

International Nuclear Information System (INIS)

Kasa, Sjur; Naess, Lars Otto

2002-01-01

Globalization is often thought of as being associated with increasing environmental problems. In particular this is true in connection with dramatic financial crises. Experience from the financial crisis in Brazil in 1998 to 1999, however, shows a more varied picture in which parts of the environmental policy were indeed improved. The article also discusses how representative the example of Brazil might be for generalization and points out that the reaction of Brazil on the financial crisis was mitigated by that country being a strong democracy with robust institutions

The Asian financial crisis: identification, interdependence, and transmission

OpenAIRE

Lestano, M.

2006-01-01

The 1980s and 1990s witnessed several episodes of financial turmoil, including the sovereign debt crisis of Latin America in the 1980s, the near-breakdown of the European Exchange Rate Mechanism (ERM) in 1992-1993 and the severe crisis that swept through Asian economies in 1997-1998. Three generations of theoretical models have been proposed to describe and explain such financial crises. The so-called first-generation models ars focussed on the Latin America debt crisis, which is characterise...

Systemic Crises and Growth

OpenAIRE

Romain Ranciere; Aaron Tornell; Frank Westermann

2005-01-01

In this paper, we document the fact that countries that have experienced occasional financial crises have, on average, grown faster than countries with stable financial conditions. We measure the incidence of crisis with the skewness of credit growth, and find that it has a robust negative effect on GDP growth. This link coexists with the negative link between variance and growth typically found in the literature. To explain the link between crises and growth we present a model where contract...

Global financial crisis and its impact in the countries in transition – with special emphasis in Kosovo

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Halil Kukaj

2017-07-01

Full Text Available Financial crises are characterized as phenomena that have been recorded for a long time. These phenomena are considered as bad events because they are associated with a deep decline in economic activity, and many of them are considered to happen due to the lack of central banks, lack of a strong currency or the lack of a steady banking system (reduction of money supply and narrowing of loans. The first financial crisis of the modern world related to the real existence of the market and its own capitalism as the system emerged in 1636 in the Netherlands, known as the tulip crisis, a flower symbolizing the Netherlands. Later, during the period of the first industrial revolution in England and France, dozens of crises emerged. While in the US, the first industrial crisis emerged in 1819, followed by many to the Great Depression crises of 1929-1933. According to the researchers, all these crises have occurred for the same cause: financial speculation is neglected in order to benefit as much as possible. From such a fact, one can think that crises and monetary illusions are an inevitable fatality. They have been co-drivers of development and capitalism, so it does not seem strange that most of the books and studies determined to financial crises end with the question: What is the next crisis???

Financial Crises in 1997 – 2001 Shortcomings of the International Financial Architecture

OpenAIRE

Steinherr A.

2001-01-01

What economists and policy-makers for a long time had considered as virtually impossible has happened: except for North America and Europe, since 1997 the world financial system has moved with dazzling speed from crisis to crisis. Major countries in Asia, Europe and Latin America collapsed or fell prey to the contagiousness of the crisis. It all started in Thailand in the summer of 1997, quickly spread to other South-East Asian countries, dragged down Japan, infested Russia and spread to Lati...

Financial Crisis and Corporate Social Responsible Mutual Fund Flows

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Sitikantha Parida

2018-01-01

Full Text Available In this paper, we investigate investment flows into mutual funds that hold more high corporate social responsible stocks (top CSR funds vs. mutual funds that hold more low corporate social responsible stocks (bottom CSR funds. Using a large sample of equity mutual funds spanning 2003–2012, we find that top CSR funds on average receive about 5% less investment per annum compared to the other funds; whereas bottom CSR funds receive about 5.6% more investments. These relative negative and positive flows into the top and bottom CSR funds respectively were larger during the pre-financial crisis period (2003–2007. This trend, however, reversed during the financial crisis (2008–2009. Top CSR funds attracted about 8.7% more investments during the financial crisis compared to the pre-crisis period; whereas bottom CSR funds received about 9.8% less investment. This higher investment into the top CSR funds during the crisis seems to have disappeared during the post-crisis period (2009–2012. Additional analysis shows that the corporate social ratings of top CSR funds improved through the crisis, whereas it deteriorated for the bottom CSR funds. Our findings are consistent with the “flight to quality” phenomenon observed in financial markets during market crises, indicating that investors perceive top CSR fund investments as relatively safe or of higher quality and hence, invest more in them during financial crises.

Financialization and financial profit

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Arturo Guillén

2014-09-01

Full Text Available This article starts from the critical review of the concept of financial capital. I consider it is necessary not to confuse this category with of financialization, which has acquired a certificate of naturalization from the rise of neoliberalism. Although financial monopoly-financial capital is the hegemonic segment of the bourgeoisie in the major capitalist countries, their dominance does not imply, a fortiori, financialization of economic activity, since it depends of the conditions of the process reproduction of capital. The emergence of joint stock companies modified the formation of the average rate of profit. The "promoter profit" becomes one of the main forms of income of monopoly-financial capital. It is postulated that financial profit is a kind of "extraordinary surplus-value" which is appropriated by monopoly-financial capital by means of the monopolistic control it exerts on the issue and circulation of fictitious capital.

RTE - 2012 financial results

International Nuclear Information System (INIS)

Ricour, Olivia; Marguier, Marina; Lartigau, Thierry

2013-01-01

The mission of RTE, the French electricity Transportation grid, a public service assignment, is to balance the electricity supply and demand in real time. This report presents RTE's financial results for 2012: increase of investments for services to clients, performance results, financial balance, stability of the economical model. RTE's regulated economical model, main financial indicators, 2007-2012 investments, 2012 investments by category, 2012 turnover, 2012 costs structure, taxes, financial balance sheet at the end of 2012, and the share of electricity transport in the electricity price are presented in appendixes

Rational expectations and the effects of financial liberalization on price level and output

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Rangan Gupta

2013-02-01

Full Text Available This paper develops a generalized short-term model of a small open financially repressed economy, characterized by unorganized money markets, intermediate goods imports, capital mobility, flexible exchange rates and rational expectations, to analyze the price- and output-effects of financial liberalization. The analysis shows that financial deregulation, in the form of increased rate of interest on deposits and higher cash reserve requirements, unambiguously and unconditionally reduces domestic price level, but fails to affect output. Moreover, the result does not depend on the degree of capital mobility. The paper recommends that a small open developing economy should deregulate interest rates and tighten monetary policy if reducing inflation is a priority. Such a policy, however, requires the establishment of a flexible exchange rate regime.

Challenges of the Central Banks in the Post Crisis Period when Needed to Ensure the Financial Stability

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Anisoara Niculina APETRI

2016-09-01

Full Text Available The concerns of the European and domestic monetary authorities to reform the current regulatory but also supervisory framework became our main reason to achieve this scientific approach. The international financial crisis has generated important dysfunctions at the level of the main activity of central banks but also at the level of the objectives that these banks should meet. Thereby, if most central banks have normally pursued the objective clearly stated in their mandate as "price stability", nowadays they are trying to achieve the "financial stability". Thus the main objective of this study particularly concerns: highlighting the role of central banks in ensuring the financial stability; and analyzing the challenges of the central banks after the financial crisis.

Pricing Strategy, Pricing Stability and Financial Condition in the Defense Aerospace Industry

OpenAIRE

Johnstone, Jeffrey Carl; Keavney, Patrick Daniel

1987-01-01

Approved for public release, distribution unlimited The purpose of this research is to determine if pricing strategy and pricing stability for products in the defense aerospace industry can be predicted based on a firm's financial condition. The sample for this research includes 17 contractors and 52 missile and aircraft programs. Two separate issues are addressed. The first issue concerns the relationship between financial condition and contractor pricing strategy. The second concerns the...

IMBALANCES IN THE FINANCIAL SYSTEM OF UKRAINE AND THEIR TRANSMISSION TO THE SYSTEMATIC RISKS IN THE MONETARY STABILITY

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O. Liubkina

2013-10-01

Full Text Available The article examines the current state and major imbalances in the financial market of Ukraine, which are the source of risk to the national economy and can significantly affect the monetary stability during the post-crisis period and the period of recession. Threats that are associated with peculiarities of the institutional structure of the financial market of Ukraine are analyzed, namely, on the one hand, the importance of banking institutions, and on the other – functional inadequacy of the banking systems in ensuring monetary and financial stability. The analysis shows that the weaknesses of the banking system have led to the accumulation of risks and structural misbalances in the Ukrainian economy which pose a danger to stability in the financial sector. Conclusions and measures are substantiated for the use of tools of monetary policy in order to strengthen monetary and financial stability. Among them are: the necessity of changes in the methodological tools of assessment of the financial stability and accumulation of systemic risk in the economy, measures to manage the inflation risk as the main internal risk for Ukraine, ways of enhancement of interaction between the banking system and the national economy through the interest rate benchmark.

Financial structure, financial development and banking fragility: International evidence

OpenAIRE

Ruiz-Porras, Antonio

2008-01-01

We study the effects of financial structure and financial development on banking fragility. We develop our study by using fixed-effects panel-data regressions and by controlling the effects of certain banking indicators. We use individual and principal-components indicators of the activity, size and efficiency of intermediaries and markets. The indicators include data for 211 countries between 1990 and 2003. Our main findings suggest that banking stability is enhanced in market-based financia...

"Financial Markets Meltdown: What Can We Learn from Minsky"

OpenAIRE

L. Randall Wray

2008-01-01

In this new Public Policy Brief, Senior Scholar L. Randall Wray explains today's complex and fragile financial system, and how the seeds of crisis were sown by lax oversight, deregulation, and risky innovations such as securitization. He estimates that the combined losses throughout the entire financial sector could amount to several trillion dollars, and that the United States will feel the effects of the crisis for some time - perhaps a decade or more. Wray recommends enhanced oversight of ...

CONSIDERATIONS ON THE ROLE OF FINANCIAL MARKETS IN ECONOMIC GROWTH

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Carmen ALBU

2014-06-01

Full Text Available Generally accepted in economic literature, the financial market has a positive impact on growth in a modern economy. Nevertheless, due to the global crises starting in 2008, a number of authors are questioning today about this assertion. Among them, there are authors which are attributing as initial impulse to the crisis an exaggerated expansion of financial market (and non-covered on the real side of economy. In this study, based on economic literature and empirical evidences, we are presentig few considerations regarding the development of financial market during last decades and its role on economic growth.

THE IMPACT OF THE FINANCIAL CRISIS ON THE THEORY AND PRACTICE OF FINANCIAL SYSTEM SUPERVISION

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Roxana Heteș

2013-04-01

Full Text Available The recent global financial crisis has reopened the debate about macroeconomic policies’ objectives, but also the need and extent of state involvement in the functioning of the economy, either directly or indirectly. This has exposed some weaknesses in the system of regulation and supervision of the financial system and the its architecture, especially in the treatment of systemic risks and vulnerabilities, but also the financial implications of the globalization process. The global nature of financial crisis highlighted the fact that, although integrated financial markets offer a number of significant benefits, risks involved are not negligible. Therefore, to ensure the financial stability of an increasingly integrated landscape there was felt the need for reform of the financial system architecture, both nationally and internationally.

Iceland’s Financial Crisis In 2008. Political, Economic and Social Consequences

Directory of Open Access Journals (Sweden)

Legutko Agnieszka Joanna

2017-12-01

Full Text Available The author analyzes the successful strategy of overcoming financial breakdown in the case study of Iceland. The aim of the article is to verify a hypothesis that the Icelandic model could become a panacea for future crises? A document analysis method is applied to present essential indicators such as GDP and trade balance. With the use of a source analysis method, the collapse of the financial sector is determined as the main cause of the slump. The systematization of crisis events is introduced and deepened by the social and political situation. Changes in the state’s condition after the crash are provided and future forecasts about economic development are discussed. As a summing up, the author disapproves of the hypothesis that the Icelandic model of overcoming the financial breakdown as a panacea for future crises, pointing out that it is only applicable for specific cases and cannot be seen as a magical remedy for every kind of crisis.

An Empirical Analysis for the Prediction of a Financial Crisis in Turkey through the Use of Forecast Error Measures

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Seyma Caliskan Cavdar

2015-08-01

Full Text Available In this study, we try to examine whether the forecast errors obtained by the ANN models affect the breakout of financial crises. Additionally, we try to investigate how much the asymmetric information and forecast errors are reflected on the output values. In our study, we used the exchange rate of USD/TRY (USD, the Borsa Istanbul 100 Index (BIST, and gold price (GP as our output variables of our Artificial Neural Network (ANN models. We observe that the predicted ANN model has a strong explanation capability for the 2001 and 2008 crises. Our calculations of some symmetry measures such as mean absolute percentage error (MAPE, symmetric mean absolute percentage error (sMAPE, and Shannon entropy (SE, clearly demonstrate the degree of asymmetric information and the deterioration of the financial system prior to, during, and after the financial crisis. We found that the asymmetric information prior to crisis is larger as compared to other periods. This situation can be interpreted as early warning signals before the potential crises. This evidence seems to favor an asymmetric information view of financial crises.

Crises in Asia or crisis of globalisation?

OpenAIRE

Dieter, Heribert

1998-01-01

The crises in Southeast and East Asia have started a new round of debate on the benefits and disadvantages of globalisation. We have to ask whether the crises in Asia were the result of failures in national economic policy or whether they were the consequence of ill-constructed global financial markets. It can be concluded that the crises were caused by a number of factors, both internal and external, but that the decisive shifts came from actors on international financial markets as well as ...

Stability and change in political conservatism following the global financial crisis.

Science.gov (United States)

Milojev, Petar; Greaves, Lara; Osborne, Danny; Sibley, Chris G

2015-01-01

The current study analyzes data from a national probability panel sample of New Zealanders (N = 5,091) to examine stability and change in political orientation over four consecutive yearly assessments (2009-2012) following the 2007/2008 global financial crisis. Bayesian Latent Growth Modeling identified systematic variation in the growth trajectory of conservatism that was predicted by age and socio-economic status. Younger people (ages 25-45) did not change in their political orientation. Older people, however, became more conservative over time. Likewise, people with lower socio-economic status showed a marked increase in political conservatism. In addition, tests of rank-order stability showed that age had a cubic relationship with the stability of political orientation over our four annual assessments. Our findings provide strong support for System Justification Theory by showing that increases in conservatism in the wake of the recent global financial crisis occurred primarily among the poorest and most disadvantaged.

Output Loss Severity across EU Countries. Evidence for the 2008 Financial Crisis

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Iustina Alina Boitan

2015-08-01

Full Text Available Financial crises are complex phenomena, in terms of the triggering factors, duration and severity, impact on both financial system and macroeconomic fundamentals and the full range of costs arising from its occurrence. The paper aims at providing an updated picture on the magnitude the 2008 financial crisis had, in terms of economic costs incurred by EU member states. It has been briefly reviewed crises’ main monetary and economic effects and costs. Then it has been employed International Monetary Fund’s approach for measuring crisis severity, expressed as an output loss indicator. To check the stability of the results, the basic methodology relying on a 3-year GDP trend has been complemented with a 7-year GDP trend. The output losses recorded by each EU country, under both trend assumptions, showed that Baltic states and Greece had been the most affected as they cumulated the highest losses. The lowest output losses have been registered in Western Europe countries (Austria, Belgium, France, Germany and Poland. Most EU economies’ growth still hasn’t entered on a robust ascending path, as they haven’t reached the level of GDP trend computed for the period preceding the onset of the financial crisis.

Regulatory Competition in Global Financial Markets

DEFF Research Database (Denmark)

Ringe, Georg

2016-01-01

Regulatory arbitrage in financial markets refers to a number of strategies that market participants use to avoid the reach of regulation, in particular by virtue of moving trading abroad or relocating activities or operations of financial institutions to other jurisdictions. Where this happens...... institutions' excessive risk-taking. If such risk-taking would be judged by market discipline instead of posing a risk to global financial stability, the main downside of regulatory competition could be restrained. Within the boundaries of such a system, competition could then operate and contribute...... their standards solely to attract business and thereby impose externalities on the worldwide financial market by undermining financial stability as a global public good. Policymakers worldwide are experimenting with remedies to respond to the phenomenon. I introduce the importance of an effective special...

Crises cambiais e financeiras: uma comparação entre América Latina e Leste Asiático Financial and currency crises: comparing Latin America and East Asia

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Dante Mendes Aldrighi

2009-04-01

Full Text Available Este artigo investiga as fontes de vulnerabilidade e o grau de severidade das crises cambiais e financeiras na América Latina e no Leste Asiático. Evidências obtidas a partir de um conjunto de indicadores calculados por país e por região para cada ano entre 1990 e 2004 sugerem que as economias do Leste Asiático eram potencialmente mais vulneráveis em aspectos relacionados ao setor bancário, enquanto as fragilidades das economias latino-americanas concentravam-se nos desequilíbrios fiscais e nas transações correntes do balanço de pagamentos. Por sua vez, estimativas do grau de severidade das crises mostram que, embora atenuadas na crise asiática de 1997-1998, as diferenças regionais persistiam.This article focuses on the sources of vulnerability to currency and financial crises as well as on their degree of severity in Latin American and East Asian economies. Evidence based on a number of indicators reckoned for each country and for each region for every year over the period 1990-2004 suggests that the East Asian economies were potentially more vulnerable to troubles in the banking sector, while Latin American economies' weaknesses seem to be concentrated on fiscal and current account imbalances. Furthermore, the severity crisis indicators point out that there still remained regional contrasts, lessened only during the 1997-1998 Asian crises.

Intervention in systemic banking crises

NARCIS (Netherlands)

Homar, T.

2016-01-01

Systemic banking crises often continue into recessions with large output losses. Governments and central banks intervene to preserve the key functions of the financial system and to mitigate the adverse impact of financial distress on economic growth. This thesis investigates how effective

Country Value Premiums and Financial Crises

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Adam Zaremba

2014-01-01

Full Text Available The paper concentrates on the value premium across countries and contributes to the investment and asset pricing literature in three ways. First, I provide fresh evidence that the high-value countries perform significantly better than the low-value countries. Additionally, this phenomenon is indifferent to the choice of the computational currency, representative index or value indicator. Second, I demonstrate that the value effect can be successfully amplified by combining with country-level size and momentum effects. Third, I show that returns to the high-value countries deteriorate in financial crisis conditions, because the country-level value premium is negatively correlated with the credit spreads, TED spread and expected volatility. I examine data from 66 markets between years 2000 and 2013.

The Process towards the Centralisation of the European Financial Supervisory Architecture: The Case of the Banking Union

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Elisabetta Montanaro

2016-06-01

Full Text Available The evolution of the EU supervisory architecture has demonstrated that it took the risk of a euro break-up to barely overcome the Member States and their supervisors’ political resistances to centralisation. In the two-tier Europe that is emerging after the euro crisis, the integrity of the single market seems today crucially interlinked with the success of the banking union and its attractiveness for non-euro countries. The banking union’s design, without a credible common fiscal backstop, remains however a partial solution to the financial stability issues arising from the fragmentation of the EU financial market in the event of banking crises. Against this background, this work performs an analysis on non-euro countries’ own assessments of the pros and cons of joining the banking union. The analysis aims at showing that until fiscal responsibility for financial stability remains at the national level, regulatory centralisation cannot sever the traditional divide between home and host supervisors. JEL: F35; F65; G01; G28

Financial Literacy, Financial Education, and Economic Outcomes

Science.gov (United States)

Hastings, Justine S.; Madrian, Brigitte C.; Skimmyhorn, William L.

2013-01-01

In this article, we review the literature on financial literacy, financial education, and consumer financial outcomes. We consider how financial literacy is measured in the current literature and examine how well the existing literature addresses whether financial education improves financial literacy or personal financial outcomes. We discuss the…

DEFINITION AND CHOICE OF FINANCIAL STRATEGY OF CORPORATION

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V. S. Michel

2015-01-01

Full Text Available The current stage of economic development of theRussian Federationmakes the question of the analysis of the financial condition of corporations, as well as the development of their financial strategy. This is due to a large share of unprofitable enterprises in theRussian Federation, as well as low levels of liquidity and autonomy. Given that the financial condition of the company depends largely on the success of its activities, the analysis of the financial condition of the company paid much attention. Pledge of survival and the foundation stability of enterprises and organizations in a market economy is financial stability. Financial stability of the company is able to manipulate the funds to ensure the sustainability of production and sales through effective use, and to minimize the cost of its expansion and renovation. View of this article is devoted to the most important task of strategic management, namely the identification and selection of effective financial strategy of the corporation. 

The Impact of the Dodd-Frank Act on Financial Stability and Economic Growth

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Martin Neil Baily

2017-01-01

Full Text Available This article assesses the benefits and costs of key provisions of the Dodd-Frank Act that strengthened regulation following the financial crisis. The provisions are placed into five groupings: clear wins, clear losses, costly tradeoffs, unfinished business, and too soon to tell. Clear wins include higher prudential standards, including for capital; the single-point-of-entry resolution authority; creation of the Consumer Financial Protection Bureau; and greater transparency and oversight of derivatives. Clear losses are restrictions on Federal Reserve emergency lending authority and forcing the Federal Deposit Insurance Corporation to obtain permission from Congress before providing temporary liquidity guarantees. Costly tradeoffs are the Volcker Rule and the Lincoln Amendment. Unfinished business includes regulatory consolidation and more independence for the Financial Stability Oversight Council and the Office of Financial Research. Too soon to tell are requirements and standards for leverage ratios, capital buffers, stress testing, and liquidity requirements.

Precarious Learning and Labour in Financialized Times

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Jamie Magnusson

2013-07-01

Full Text Available Our current globalized economic regimes of financialized capital have systematically altered relations of learning and labour through the dynamics of precarity, debt, and the political economy of new wars. The risks of these regimes are absorbed unevenly across transnational landscapes, creating cartographies of violence and dispossession, particularly among youth, indigenous, working class, and racialized women. Presently there is surprisingly little discussion on the relevance of financialization for adult educators. Transnational resistances organizing against neoliberal restructuring, austerity policies, and debt crises are emerging at the same time that massive investments are being made into homeland security and the carceral state. This paper opens up discussion on the implications of financialized times for educators, and develops an analytic framework for examining how these global realities are best addressed at local sites of adult and higher education.

THE IMPLICATIONS OF LIQUIDITY CRISES IN THE CONTEXT OF EMERGING CAPITAL MARKET

OpenAIRE

Felicia Ramona Birău

2012-01-01

This article aims to highlight the implications of liquidity crises in the context of emerging capital market. Capital markets, and especially emerging capital market appear to behave notably differently during periods of liquidity crises in comparison with periods of stability. The concept of emerging capital market itself is in obvious antithesis to the idea of financial equilibrium. This particular category of capital markets is characterized in a certain measure by profound institutional,...

Liberal economic nationalism, financial stability, and Commission leniency in Banking Union

NARCIS (Netherlands)

Donnelly, Shawn

2017-01-01

This paper demonstrates that protection and promotion of insolvent banks remains a high priority for national authorities in Europe, and the Commission partially accommodates these impulses in the desire to preserve national financial stability. Insolvent banks are kept alive despite Banking Union

Globalization, financial capitalism, and corporate social responsibility: Structural tensions

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David Barbosa Ramírez

2014-12-01

Full Text Available Globalization and financial capitalism keep a synergy in a global context whose problems such as environmental degradation, social inequity, economic crises and corruption are intensified. Corporate Social Responsibility emerges as a mechanism that seeks to mitigate some of these problems, although its effectiveness and impact today are challenged. The system which globalization, financial capitalism and social responsibility are a part of, is currently facing a number of structural tensions that contribute to the analysis, understanding and solving of the mentioned problems. This paper identifies and analyzes four of the aforementioned structural tensions.

Financial time series analysis based on information categorization method

Science.gov (United States)

Tian, Qiang; Shang, Pengjian; Feng, Guochen

2014-12-01

The paper mainly applies the information categorization method to analyze the financial time series. The method is used to examine the similarity of different sequences by calculating the distances between them. We apply this method to quantify the similarity of different stock markets. And we report the results of similarity in US and Chinese stock markets in periods 1991-1998 (before the Asian currency crisis), 1999-2006 (after the Asian currency crisis and before the global financial crisis), and 2007-2013 (during and after global financial crisis) by using this method. The results show the difference of similarity between different stock markets in different time periods and the similarity of the two stock markets become larger after these two crises. Also we acquire the results of similarity of 10 stock indices in three areas; it means the method can distinguish different areas' markets from the phylogenetic trees. The results show that we can get satisfactory information from financial markets by this method. The information categorization method can not only be used in physiologic time series, but also in financial time series.

How do banking crises affect aggregate consumption? Evidence from international crisis episodes

OpenAIRE

Gerlach-Kristen, Petra; O'Connell, Brian; O'Toole, Conor

2013-01-01

This paper considers the effect of systemic financial crises on aggregate consumption. Using a sample of 23 countries over 32 years, we find that consumption growth seems lower during banking crises, crises following credit booms and crises following house price booms. Moreover, the response to income growth seems to change, which may be due to credit constraints. In the long run, consumption appears to be linked to income, housing and other financial wealth.

Opinion on the new financial products issued by financial institutions - structured products

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Baranga Laurentiu Paul

2017-07-01

Full Text Available Structured products are financial instruments issued by a financial institution where the amount claimed by the investor from the issuer depends on the variation of the price of the underlying instrument based on which the certificate is issued, namely: individual shares, share costs, stock indexes, currencies, commodities or combinations of these according to the prospectus. These products appeared with the development and diversification of financial services during the recent years, as well as due to the emergence of liquidity suppliers of international importance. The liquidity providers have developed on their own platforms a new range of derivatives which are different from the classical derivatives. These new derivatives, similar to contracts for difference (CFDs, have given to other institutions the possibility of transferring their risk more easily, regardless of the nature or type of the underlying asset. Thus, the financial institutions issuing structured financial products have found in liquidity providers the possibility of developing the CFDs required for their risk transfer operations. The issuers of structured products do not accept new risky positions when they issue certificates because they neutralize them through suitable risk transfer operations. The issuing financial institutions structure certificates from a variety of financial assets and/or commodities in order to adjust them to the various risk profiles of investors both in terms of expected return and in terms of the response to risk. Thus, products are issued that quickly respond to the trends of the financial or commodity markets. Investors in structured financial products benefit from the economic effect of a derivative but are exposed to financial risks that are more complex and more difficult to understand and at the same time depend on the reliability and stability of the contractual relationships between various financial institutions.

Stress testing in financial institutions

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Mirković Vladimir

2014-01-01

Full Text Available In 2000 the Basle Committee on the Global Financial System defined stress testing as 'a generic term describing various techniques used by financial firms to gauge their potential vulnerability to exceptional but plausible events'. Exceptional events refer to one-off or recurring events with far-reaching consequences for the concerned financial institution and the financial sector s stability overall. Such unexpected (exceptional events include, for instance: bankruptcy in Argentina in 2001, stock markets collapse ('Black Monday' on 19 October 1987, or the fall of the energy giant Enron in 2001. The adoption of the new Basle Accord (better known as Basle II in 2001 envisaged the implementation of stress tests for the identification of events and future changes in economic circumstances that could cause some unfavorable effects on banks' credit exposure, along with the assessment of banks' ability to survive in the new circumstances. Negative experiences from the past, having undermined the stability of financial systems worldwide, made a decisive impact on regulators at all levels to additionally consider the issue of increasing the financial system's resistance to the occurrence of unexpected - exceptional events. To this end, the introduction of stress tests was the turning point in the process of increased banking systems' resistance to shocks. This paper primarily deals with stress testing methodology and bank risk measurement techniques, along with the main results of conducted tests, directly impacting the entire financial system.

Analiyzing Main Determinant of Currency, Debt and Banking Crises and Frag ilities in Turkey

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Murat Türker

2015-09-01

Full Text Available The basic lessons obtained from financial turbulences all over the wor ld are the need to spot main causes, identify the triggering risk factors and consequently develop resolution plans for the potential financial crises, which include the establishment of a sound and strong financial system with strengthened institutional and structural bodies. Accurately and timely detection of the main causes that trigger financial fragilitiesemerging from currency, debt and banking is supposed to guide regulators to find "to the point" solutions to the fragility problems and to isolate their effects. Since in the Turkey case, financial crises were observed to occur in the form of twin crises or triplet crises, in this paper, we put forward Turkey-specific diagnoses and suggestions. Thus, the main factors that triggered financial turmoils in Turkey's last quarter century are low GDP, inadequate equity capital, insufficient bank returns, poor FX reserve, high inflation, short position-hot money policy, capital outflows, manipulative credit ratings and bank inertia, namely a trade off betweencredit transactions and risk-free investment vehicles

FINANCIAL STABILITY – THE PRE-REQUISIT OF A SUCCESSFUL FINANCIAL ACTIVITY

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Chirila Emil

2012-07-01

Full Text Available Essential component of social life, the economic activity is faced with the problems of permanent balance. General economic balance implies the existence of a correspondence between needs for material goods and goods possibly available; needs for labor force and manpower available; needs for financial resources and opportunities for their procurement; between revenues of the population and their possible coverage with goods and services; between needs for foreign currency resources and those potentially available in given circumstances. We believe that the financial balance of an company must reflect, through financing rates, the method of ensuring, allocating and using financial resources, on the one hand, and the economic-financial results obtained from the activity performed on the other hand, as well as reflect the relation between cash flows generated by operation activities, by investments and financing, on the one hand, and cash flows used for these activities, on the other hand. The financial balance study, according to "Cross-border research programme - performance indicators of entities in the Bihor- Hajdu Bihar Euro-region" - HURO/0901/204/2.2.3 was based on the basis of financial reporting for the years 2008-2010 for a number of 50 companies grouped in the representative activity sectors contributing to the county’s GDP performance as follows: Processing industry, Building, Building materials industry, Light industry, Agricultural products processing, Forestry and wood-processing industry, Commerce, Tourism services, Transport services. The calculation of balance indicators for the examined Bihor county companies are presented in the tables from the second chapter and briefly interpreted. It is important to note that companies which are representative for the economy of the Bihor county, possess 93,7% of the total subscribed and used capital, given that the number of public limited companies is 330 and represents only 1

78 FR 48770 - Proposed Collection; Comment Request; Office of Financial Stability

Science.gov (United States)

2013-08-09

..., Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the Office of Financial Stability within the...: Private sector: Businesses or other for-profits. Estimated Number of Respondents: 51. Estimated Number of... Compensation Corporate Governance, provides guidance on the executive compensation and corporate governance...

Financial Village Standing in Indonesian Financial System

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Herry Purnomo

2015-12-01

Full Text Available Financial resources of the village that are sourced from a country or a Regional Finance Financial based Law Number 6 Year 2014 of The Village is the mandate of the law that must be allocated to the village. The interconnectedness of the financial position of the village in the financial system of the country or Region concerned the Financial administrative and territorial relations, and there is no setting directly regarding the finances of the village as part of the financial system of the country or the financial area. In respect of the elements of the crime of corruption deeds against financial irregularities of the village there are still disagreements on the interpretation of the law in trapping the perpetrators of corruption on the village chief that implies not satisfy the principle of legality and legal certainty in the ruling of the matter of financial irregularities. In fact, many of the village chief or Councilor caught the criminal offence of corruption over the use of financial irregularities. This research analyzes How the financial position of the village in the financial system of the country or region, as well as whether the financial resources of the village is derived from the state budget or region budget managed in village budget belongs to the category of village finances and whether tort against the financial management of the village can be categorized as a criminal act corruption. How To Cite: Purnomo, H. (2015. Financial Village Standing in Indonesian Financial System. Rechtsidee, 2(2, 121-140. doi:http://dx.doi.org/10.21070/jihr.v2i2.81

Financial Sector Assessment : Morocco

OpenAIRE

World Bank

2003-01-01

This Financial Sector Assessment (FSA) provides a summary of the policy priorities, and main findings intended to assist the Moroccan authorities in evaluating the country's financial system. It reviews the uneasy trade-off between concerns for stability, and development, suggesting Morocco's macroeconomic policies and practices as a whole tend to err more on the side of the concerns of pr...

Financial Literacy of Latvian Citizens: Findings and Conclusions

OpenAIRE

Guna Ciemleja

2016-01-01

The global financial crisis and financial stability issues of the Eurozone countries have demonstrated that the total of financial knowledge and skills of the population that lets people make informed and efficient decisions is of utmost importance. Considering high social importance of financial education, it is necessary to develop a knowledge platform to increase the level of financial literacy. The results obtained in the process of assessment of the level of individual's financial litera...

Arbitrage and Competition in Global Financial Regulation

DEFF Research Database (Denmark)

Ringe, Wolf-Georg

Regulatory arbitrage in financial markets refers to a number of strategies that market participants use to avoid the reach of regulation, in particular by virtue of shifting trading abroad or else relocating activities or operations of financial institutions to other jurisdictions. Where...... institutions’ excessive risk-taking. If such risk-taking would be judged by market discipline instead of posing a risk to global financial stability, the main downside of regulatory competition could be restrained. Within the boundaries of such a system, competition could then operate and contribute...... their standards solely to attract businesses and thereby impose externalities on the worldwide financial market by undermining financial stability as a global public good. Policymakers worldwide are experimenting with remedies to respond to the phenomenon. I introduce the importance of an effective special...

THE CURRENCY CRISIS TRIGGER OF THE ROMANIAN FINANCIAL CRISIS OF 2008

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Radu SOVIANI

2014-07-01

Full Text Available This paper analyses the ways the financial crisis started to manifest into the Romanian Financial System, through the exchange rate channel. The focus of this Paper is on how the Romanian decision makers contributed in triggering the financial crisis (that would have been triggered anyway. The paper will determine the trigger (the first obvious event for the Romanian Financial Crisis (the debut and it will prove that the consequences of this trigger could have been anticipated - it is in line with similar triggers for the debut in other currency crises. Therefore, one of the main conclusions of this paper is that while a global crisis starts to manifest the local economy should limit the exuberance of the decision makers in order to smooth the effects of the crisis.

FINANCIAL INSTABILITY, FINANCIAL DEVELOPMENT AND POVERTY

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Ionescu Cristian

2012-12-01

Full Text Available There is a positive relationship between financial development and economic growth in short-run and long-run. Financial development is beneficial to the reduction of poverty. But the financial instability which accompanies financial development is is costly for the poor and reduces the positive effect of financial development on the reduction of poverty. The paper aims to analyze in detail the relationship and the (direct and indirect effects between these variables, taking into account their economic and social importance. It is also highlighted the correlation between the financial economy and the real economy, emphasizing the impact on social welfare involved by the interaction of the above mentioned variables.

Financial Literacy and Financial Behaviour

NARCIS (Netherlands)

Sayinzoga, Aussi; Bulte, Erwin H.; Lensink, Robert

2016-01-01

We organise a field experiment with smallholder farmers in Rwanda to measure the impact of financial literacy training on financial knowledge and behaviour. The training increased financial literacy of participants, changed their savings and borrowing behaviour and had a positive effect on the

FINANCIAL SYSTEM STRUCTURE AND STABILITY DURING TRANSITION

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Firtescu Bogdan

2012-07-01

Full Text Available The process of transition from socialist economy to market economy was not considered an end in itself, but a necessity, and standing proof to achieve high levels of sustainable development. All former socialist countries are characterized by an early transition recession transformation result of the restructuring, loss of markets, tough competition from foreign products, best quality, or in other cases cheaper. To express the financial system structure in transition we take into discussion data that reflects representatives mutations and restructuring in Central and Eastern European countries, such Bulgaria, Czech Republic, Hungary, Poland and Romania. For all countries we show some important changes of financial system during transition and construct an image matrix that illustrates important indicators of financial system structure and their adjustment.

From Subprime and Eurozone Crisis with Full Speed into the Next Financial Crisis

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Strašek Sebastjan

2017-09-01

Full Text Available This paper offers an analysis of the road from subprime and eurozone crisis to the elements of a new systemic crisis. Our aim is to research common issues that accompany each of these crises and to explore elements that hint that the financial systems are moving toward a new crisis. By holding short-term interest rates near zero, the central banks have encouraged malinvestment and speculation. Fuelling the bubble is the fear of missing out on trade. We find that actual events and movements on security markets follow a typical pattern, which indicates a serious threat for the next financial crisis. We also find enough signs that old crises lessons haven’t been learned.

FINANCIAL DEPTH AND FINANCIAL ACCESS IN INDONESIA

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Sigit Setiawan

2015-05-01

Full Text Available This study is intended to analyze the current levels of financial depth and financial access in Indonesia and to analyze the factors affecting them. The analysis method used was a combination of descriptive quantitative, benchmarking, and literature reviews. The conclusion is that the financial depth in Indonesia has not shown a satisfactory level since it was the lowest, or the second lowest ranked country among the sampled countries. Meanwhile, the financial access in Indonesia is relatively better than its financial depth, especially for financial markets, in which Indonesia ranks in the lower average group. From literature reviews, it can be inferred that the main factor driving the poor financial depth in Indonesia is non-competitiveness of the institutions; whereas the driving force of poor financial access in Indonesia are geographical constraints, poverty, a high income gap, and a less than effective national financial development policy.

Management strategies of the financial-economical crisis in the hotel’s domain

OpenAIRE

Carmen IORDACHE

2013-01-01

During the crises period, the advertising budgets in the hotel’s domain are considerable reducing. If, in the beggining, the hotels offer important sums to promote the brand’s image, with the aim of going public, during the crises period they focuse on tactical and advertising campaignes. Realizing the place and the role of the hotels’s industry like a part of the tourist activity, this paper wants to tap the responsible management problem of the financial-economical crises which affects the ...

Financial analysis as a financial management instrument

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Stehlíková Beáta

2001-12-01

Full Text Available The financial market is one of the elements of the market-oriented economy. The financial analysis is a fundamental element of the financial controlling business. The purpose of this article is to inform briefly about horizontal and vertical financial statements analysis as the source of competitive advantage of the firm. The article is divided into two parts. First describes financial analysis and financial statements generally. Second, it presents a practical contribution of the horizontal and vertical financial statements analysis at the controlled businesses as financial management tools, which identify the financial position, market behaviour, correlations between the net profit and the prohibitively cost and operating profit, the financial activities profit, the income tax etc.Business, which the analysed firm operates in asks a provable claim on the high value of fixed assets. The capital composition of the firm is call to typify for the state-owned enterprise that was transformed to private joint-stock companies. Analysis is specially pleading for the needs considering the price of the borrowed capital in the capital structure rating. Fault factor ø value talks about needs for the cost regulation. Stair-step conception used for counting of the net profit in the accountant period indicates the financial profit, alternatively loss, as the distinguished pre-tax profit element. Picture about firm’s financial results can be completed with the information about the income tax value. Form of financial analyses presented in the article entablature the accents on the necessity to compare several accounting period and on the necessity of complex understanding of statements accounting slide “en bloc”.Financial analyse makes the decision makers possible to screen potential partners before the cooperation starts. On the other side, it makes a possibility to influence the production process, sales and financial management during the accounting

The Emotional Economy of the European Financial Crisis in the UK Press

OpenAIRE

Capelos, Tereza; Exadaktylos, Theofanis; Chrona, Stavroula; Pouloupoulou, Maria

2017-01-01

This article examines the individual, collective and social emotions embedded in media discussions of the financial crisis. Emotional experiences towards crises and the political institutions associated with them serve as valuable tools in understanding how citizens think and feel in the public sphere. We highlight over-time links between individual, collective and social emotionality as we analyze the content of UK media representations of the European financial crisis, from 2009 to 2012. We...

Hyman Minsky's financial instability hypothesis and the Greek debt crisis

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Sergey Beshenov

2015-12-01

Full Text Available This article attempts to analyze the current debt crisis in Greece based on the financial instability hypothesis developed by Hyman Minsky. This article shows that the hypothesis provides an understanding of how an economy endogenously becomes “financially fragile” and thus prone to crises. The authors analyze how public and private sector behavior in the Greek economy led to the country's debt crisis. In particular, based on a sample of 36 Greek companies, the authors show that between 2001 and 2014, the majority of those companies had switched to fragile financial structures. Special attention is devoted to the negative consequences of applying the neoclassical doctrine of “austerity measures” in Greece as the principal “anti-crisis” concept of mainstream economic science.

Explaining Responses in Danish and Irish Banking to the Financial Crisis

DEFF Research Database (Denmark)

Kluth, Michael Friederich; Lynggaard, Kennet

The 2008 global financial crises produced very different responses in Ireland and Denmark. While both countries embraced depositor guarantee schemes and recapitalization programmes, their design and adoption reveal important variations. Crucially, the Irish state initially assumed full...

Financial satisfaction and financial stressors in marital satisfaction.

Science.gov (United States)

Archuleta, Kristy L; Britt, Sonya L; Tonn, Teresa J; Grable, John E

2011-04-01

Using a sample of 310 married respondents from one U.S. Midwestern state, a test was conducted to examine the association of financial satisfaction and financial stressors in a spouse's decision to stay married to the same person or leave the relationship. The role of demographic and socioeconomic variables, religiosity, psychological constructs, financial satisfaction, and financial stressors as factors influencing marital satisfaction was tested. Financial stressors were measured using a list of financial stressors adapted from the literature. Financial satisfaction was measured with a one-item scale. The Kansas Marital Satisfaction Scale was used as a validation tool to assess whether individuals would marry or not marry again. Religiosity and financial satisfaction were positively associated with marital satisfaction. A negative interaction between financial satisfaction and financial stressors was also noted. Findings suggest that respondents who are financially satisfied tend to be more stable in their marriages.

The Financial Performance of the Greek Football Clubs

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Panagiotis Dimitropoulos

2010-01-01

Full Text Available The aim of this paper is to analyze the financial performance of the football clubs participating within the first division of the Greek football league for a period of 14 years (1993-2006 and to propose specific actions that need to be taken by both managers and regulators in order to improve the financial stability of the clubs. We perform financial analysis of key accounting ratios extracted from the football club’s annual financial statements in order to explain the particular causes of the recent financial crisis which characterizes the Greek professional football league. The analysis of the clubs’ annual financial statements revealed that the Greek football clubs are highly leveraged, have intense liquidity and profitability problems and face an increased danger of financial distress, despite the increased amounts that football clubs invested during 2005. The above mentioned crisis can be attributed to aggregate financial mismanagement and political inefficiencies during the last fifteen years. The paper proposes specific actions that need to be taken by both managers and regulators in order to improve the financial stability of the clubs and the overall competitiveness of the Greek football league.

Financial Stability and Monetary Policy: Need for International Surveillance

OpenAIRE

Gary Hufbauer; Daniel Danxia Xie

2010-01-01

In this article, we propose a new monetary framework that defines a broader set of assets, De Facto Money (DFM), as the benchmark for improving financial stability. DFM is defined as traditional monetary aggregates plus other liquid assets such as stocks and bonds. Empirical evidence for the USA, other Organisation for Economic Co-operation and Development countries, and a few emerging countries lends strong support for the connection between exceptionally fast growth of DFM and subsequent fi...

The Current Global Financial Crisis 2008-2012

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Albulena Shala

2013-12-01

Full Text Available The current global financial crisis is considered as one of the biggest crises after the crisis of the years of 30’s. The global financial crisis has affected all countries including developed and developing ones. It also has affected all the industries. Population with the low-income faced the greatest consequences. The last hope for the survival of the market economy was to undertake important steps for the nationalization of bankrupted banks and companies, thereby developing policies for the preservation of jobs. Through this analysis, we have included briefly some of the development followed the period of 2008 and onwards. A summary of statistics for some important economic indicators such as employment, exporting and importing is covered in this study as well.

How does capital affect bank performance during financial crises?

NARCIS (Netherlands)

Berger, A.N.; Bouwman, C.H.S.

2013-01-01

This paper empirically examines how capital affects a bank’s performance (survival and market share) and how this effect varies across banking crises, market crises, and normal times that occurred in the US over the past quarter century. We have two main results. First, capital helps small banks to

Financial Literacy and Financial Planning in France

Directory of Open Access Journals (Sweden)

Luc Arrondel

2013-07-01

Full Text Available We study financial literacy in France using the PATER survey and following the Lusardi and Mitchell (2011c approach. We find that some subpopulations are less financially literate than others: women, young and old people as well as less-educated people are more likely to face difficulties when dealing with fundamental financial concepts such as risk diversification and inflation and interest compounding. We also find some differences in financial knowledge depending on the political opinion of the respondents. Finally we show that these differences in financial knowledge are correlated with differences in the propensity to plan: people who score higher on the financial literacy questions are more likely to be engaged in the preparation of a clearly defined financial plan.

EFFECTS OF THE GLOBAL FINANCIAL CRISIS IN THE BANKING SYSTEM OF KOSOVO

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Myrvete Badivuku-Pantina

2012-09-01

Full Text Available Financial crises are phenomena that happened before and continue to happen even nowadays. There were many financial crises in the last century, starting with the Great Depression of 1929 and continuing with other financial crisis, and it was believed that people would learn from their previous experiences and would not allow the crisis to happen again. But the financial crisis of 2007, created the impression that no one wanted to learn for the real causes of their occurrence and consequences, often disastrous for countries and the globe, and as such allowed the crisis to be repeated. Effects of the 2007 financial crisis, which originally started in the USA’s mortgage market and which was quickly spread all over the world, even to this date it still continues to have effect on real economies of many states, e.g. Greece. The spread of the crisis was primarily due to globalization and commercial trades among countries. Because of the dependence of economies on one another it was created the domino effect and all the countries were affected from the crisis. As a result, the crisis seems to have revealed the disadvantages of globalization. Finances of the world were shocked and rapid fluctuations were reflected in the stock prices. Kosovo, as a new and small country in the Western Balkans is not much globalized and open which was beneficial in preventing it from being affected from the global financial crisis. Its economy has slightly felt the effect of the crisis because the banking system in Kosovo is not much open to the international financial markets as they operate mostly with their clients’ deposits. The purpose of this research is to assess the implications of the global financial crisis in the banking system of Kosovo, and also to identify the measures that the Central Bank and the Government should undertake in order to protect the economy from external implications.

Developing integrated performance assessment and forecasting the level of financial and economic enterprise stability

Directory of Open Access Journals (Sweden)

Khudyakova T.A.

2017-01-01

Full Text Available The article deals with the problem of assessing and forecasting the level of financial and economic enterprise stability through the integrated indicators development. Currently, many enterprises operate under variable external environment, which imposes a strict requirement to consider this uncertainty. For the evaluation, analysis and prediction of the sustainability of the enterprise in the conditions of crisis we believe it possible and necessary to use the apparatus of probability theory and mathematical statistics. This problem solution will improve quantitative assessing the financial and economic stability level, forecasting possible scenarios of the enterprise development and, therefore, based on the proactive management principles and adaptation processes will greatly increase their effective functioning, as well as reduce bankruptcy probability.

Corporate Investments in Asian Emerging Markets: Financial Conditions, Financial Development, and Financial Constraints

OpenAIRE

Wang, Jianxin; Gochoco-Bautista, Maria Socorro; Sotocinal, Noli

2013-01-01

Motivated by the literature on the finance–growth nexus, this paper explores the mechanisms through which finance affects corporate investments and capital accumulation. We separate the effects of financial conditions from those of financial development. Based on a sample of firms from five Asian emerging economies, we find that (1) financial conditions and financial development affect corporate investments through different channels. Financial conditions affect firms' growth opportunities an...

The impact of financial crisis on portuguese firms' capital structure

OpenAIRE

Lemos, Jéssica Andreia Rocha

2017-01-01

G01, G32 This study aims to verify the impacts of financial crises in the capital structure for Portuguese companies. The purpose is to study different firm-specific determinants of a sample of general PSI Portuguese listed firms at the Euronext Lisbon stock exchange, during the recent crises that endured from 2011 until 2013 and test the impacts on short and long-term debt. In order to test the changes/impacts on Portuguese firms’ capital structure, the most important theor...

Understanding Financial Statements. Financial Matters. Board Basics.

Science.gov (United States)

McCarthy, John H.; Turner, Robert M.

1998-01-01

This booklet for trustees of higher education institutions offers guidelines to help trustees understand the institution's financial statements. Individual sections describe the three major financial statements and cover topics such as: (1) standards of the Financial Accounting Standards Board; (2) the "statement of financial position,"…

The Financial Turbulence in the Economy: Case of Ukraine

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Iryna Novikova

2016-01-01

Full Text Available The article analyzes the causes and consequences of violation of financial stability. The famous historical examples of inflationary bursts emerging have been showed, as well as ways of establishing financial equilibrium. In particular, the article states that the main cause of violations of financial stability becomes inflationary boom, which arose by wars, socio-economic and political contradictions. The paper examines the impact of modern social and economic challenges on growth in inflation and on the deterioration of other macroeconomic indicators in Ukraine. At the end, recommendations to overcome financial problems in national economy have been provided. The importance of the exchange rate stability of currency has been emphasized.

EFFECTIVE CRISIS MANAGEMENT FOR ISLAMIC FINANCIAL INDUSTRY AND THE INSTITUTION OF HISBAH: LESSONS FROM GLOBAL FINANCIAL CRISIS

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Najeeb Zada

2016-06-01

Full Text Available The recent financial crisis resulted destructive effects on finance industry. Islamic financial industry (IFI is still naïve and largely untested in the face of a major financial turmoil. Major issues and uncertainties of the insolvency of IFI include the issue of moral hazard, government bailouts, excessive risk taking and deposit insurance. This paper addresses the issue of crisis management in IFI from the perspective of al-Siyasah al-Shar’iyyah and attempts to derive public policy guidelines that are useful in developing a timely and efficient crises management framework for Islamic finance industry. By using qualitative methods, the study found that the global financial crisis resulted in great destruction of financial institution. Although Islamic finance was quite immune to the global crisis as compared to its conventional peer, concerns still exist. It is time that Islamic finance industry learns from the financial woes of the rest of the world. =========================================== Krisis keuangan baru-baru ini mengakibatkan efek destruktif pada industri keuangan. Industri keuangan Islam (IKI masih naif dan sebagian besar belum teruji dalam menghadapi gejolak keuangan besar. Isu utama dan ketidakpastian dari kebangkrutan IKI meliputi moral hazard, dana talangan pemerintah, pengambilan risiko yang berlebihan dan asuransi deposito. Makalah ini membahas isu manajemen krisis dalam IKI dari perspektif al-Siyasah al-Shar'iyyah dan berusaha mendapatkan pedoman kebijakan publik yang bermanfaat dalam mengembangkan kerangka kerja manajemen krisis yang tepat waktu dan efisien bagi IKI. Dengan menggunakan metode kualitatif, studi ini menemukan bahwa krisis keuangan global mengakibatkan kehancuran besar bagi industri keuangan. Meskipun keuangan Islam cukup kebal terhadap krisis global dibandingkan dengan keuangan konvensional, kekhawatiran masih ada. Sudah saatnya industri keuangan Islam belajar dari krisis keuangan dari seluruh dunia.

Bond markets and banking crises in emerging market economies: The role of institutions

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Boukhatem Jamel

2012-01-01

Full Text Available This paper deals with the question of knowing if countries whose activity of financing is mainly bank based face crises more expensive than those where the bond markets are broader and more developed. The results of the empirical tests on a panel of emerging countries suggest that bank based financial systems are associated with crises slightly more expensive, whereas the relationship between the bond markets and the crises’ costs is fragile. Moreover, financial systems where bond markets play an important role are associated with a higher growth of the production, and this, independently of the presence or not of crises. The consideration of the combined effect of financial liberalization and institutional framework on the bond markets development shows the importance of the direction of the financial liberalization. We join in this case one of the most significant aspects of the “sequencing” theorized by McKinnon (1973. Finally, an effective prudential regulation tends to reduce significantly the probability of occurrence of banking crises.

Financial and non-financial reporting in Romanian entities operating in agriculture, forestry, and fishery

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Mihaela MOCANU

2016-06-01

Full Text Available Due to the increased interest for sustainability issues, entities that operate in the areas agriculture, forestry and fishery are exposed to a variety of ecological challenges. Moreover, such fields are generally of strategic importance for a country’s economy, which also increases their exposure to public debate. The present study aims to provide a detailed and accurate description of the financial and non-financial information made available by listed Romanian entities operating in agriculture, forestry and fishery. The research goes beyond the mere description of the content of shareholders’ reports. Its purpose is to assess the financial performance and stability of selected companies and to investigate the relationships between the financial well-being of such companies and the extent to which they disclose non-financial information. The sample consists of companies which operate in the business of fields agriculture, forestry or fishery and are listed at the Bucharest Stock Exchange in Romania.

Does financial literacy improve financial inclusion? Cross country evidence

OpenAIRE

Grohmann, Antonia; Klühs, Theres; Menkhoff, Lukas

2017-01-01

While financial inclusion is typically addressed by improving the financial infrastructure we show that financial literacy, representing the demand-side of financial markets, also has a beneficial effect. We study this effect at the cross-country level, which allows to consider institutional variation. Regarding "access to finance", financial infrastructure and financial literacy are mainly substitutes. However, regarding the "use of financial services", the effect of higher financial literac...

Determinati e direttrici della politica finanziaria italiana. (Determinants and trends of Italian financial policy

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M. SARCINELLI

2013-12-01

Full Text Available La politica finanziaria italiana negli anni Ottanta è stata finalizzato principalmente al miglioramento dei segmenti rilevanti e il raggiungimento di un migliore mix di tutta la gamma di strumenti e intermediari. Altri due tendenze - privatizzazione e deregolamentazione - sono stati molto meno in primo piano rispetto al resto del mondo . L'autore fornisce un'ampia panoramica dello stato della politica finanziaria italiana , guardando le circostanze economiche e le politiche macroeconomiche , l'innovazione finanziaria , il processo di liberalizzazione e privatizzazione di regolamentazione .Italian financial policy in the eighties has been aimed mainly at improving the relevant segments and achieving a better mix of the whole range of instruments and intermediaries. Two other trends - privatisation and deregulation - have been much less to the fore than the rest of the world. The author provides a broad overview of the state of Italian financial policy, looking at economic circumstances and macro-economic policies, financial innovation, the deregulation-regulation process and privatisation.JEL: G18

Designing a Financial Stability Architecture for a Regionally Integrated Financial Space: The European Experience.

OpenAIRE

Heinrich, Gregor

2015-01-01

Any discussion on improving the existing arrangements for assessing and managing financial risks and in particular supervising the relevant institutions will also need to address the question on which institution should be responsible for which task and for which sector of the financial system, how these institutions should be organized and, if there are several, how they should interact with each other. Based on the example of the European Union, this paper shows the gradual change from ...

Credit shocks in the financial deregulatory era: not the usual suspects

Czech Academy of Sciences Publication Activity Database

Benk, S.; Gillman, M.; Kejak, Michal

-, E2005/13 (2005), s. 1-28 ISSN 1749-6101 Institutional research plan: CEZ:AV0Z70850503 Keywords : business cycle * credit shocks * financial deregulation Subject RIV: AH - Economics http://www.cardiff.ac.uk/carbs/econ/workingpapers/papers/2005_13.pdf

Financial stability, wealth effects and optimal macroeconomic policy combination in the United Kingdom: A new-Keynesian dynamic stochastic general equilibrium framework

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Muhammad Ali Nasir

2016-12-01

Full Text Available This study derives an optimal macroeconomic policy combination for financial sector stability in the United Kingdom by employing a New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE framework. The empirical results obtained show that disciplined fiscal and accommodative monetary policies stance is optimal for financial sector stability. Furthermore, fiscal indiscipline countered by contractionary monetary stance adversely affects financial sector stability. Financial markets, e.g. stocks and Gilts show a short-term asymmetric response to macroeconomic policy interaction and to each other. The asymmetry is a reflection of portfolio adjustment. However in the long-run, the responses to suggested optimal policy combination had homogenous effects and there was evidence of co-movement in the stock and Gilt markets.

Financial fragility and global dynamics

International Nuclear Information System (INIS)

Dieci, Roberto; Sordi, Serena; Vercelli, Alessandro

2006-01-01

This paper deals with a simple model of financial fluctuations, where a crucial role is played by the dynamic interaction between aggregate current and intertemporal financial ratios. The model results in a 4D discrete-time dynamical system-capable of generating complex dynamics-which is analyzed by means of both analytical tools, such as local stability analysis and bifurcation theory, and numerical simulations. The behavior of the model is studied for different parameter regimes. We show that its dynamic behavior is very sensitive to the parameters that represent (1) the speed of adjustment of the desired current financial ratio towards a safe level of the intertemporal one and (2) the intensity with which aggregate current financial decisions affect future financial constraints. In particular, different parameter regimes are identified, giving rise to two different 'routes' to complexity, one leading to chaotic dynamics, the other to a coexistence of attractors and path-dependence

Quality of Financial Policies and Financial System Stress

OpenAIRE

Udaibir S Das; Plamen Yossifov; Richard Podpiera; Dmitriy L Rozhkov

2005-01-01

In this paper, we develop multi-country indices of financial system stress and quality of financial policies and use them in regression analysis of the determinants of financial stress. We find that countries with higher quality of financial policies are better able to contain the effects of macroeconomic pressures on the overall level of stress in the financial system. They are also in a better position to ensure sustainable development of the financial system.

Why Financial Advice Cannot Substitute for Financial Literacy?

OpenAIRE

M. Debbich

2015-01-01

This paper examines the ability of financial advice provided by sellers of financial services to substitute for financial literacy of customers. I set up a simple theoretical model in which an informed financial advisor communicates with a less informed customer of financial services. Given the existence of a conflict of interest from the advisor's perspective, the model predicts that only well financially sophisticated customers receive relevant information from the advisor. This fact tends ...

Financial fragility in the Great Moderation

NARCIS (Netherlands)

Bezemer, Dirk; Grydaki, Maria

2014-01-01

A nascent literature explores the measurement of financial fragility. This paper considers evidence for rising financial fragility during the 1984-2007 Great Moderation in the U.S. The literature suggests that macroeconomic stability combined with strong growth of credit to asset markets, in asset

Deregulation impacts AMR business cases

Energy Technology Data Exchange (ETDEWEB)

Wiebe, M.; Fauth, G.

2001-09-01

Meter reading strategy is being affected in fundamental ways by deregulation. For the utilities attempting to cope with meter reading unbundling, the processes, insights and general rules that had been developed prior to 2000 in the field of Automatic Meter Reading can no longer be relied upon to provide useful lessons. The fundamental impact on Automatic Meter Reading (AMR) business case drivers and the increasing complexity of building the business case model result from deregulation and unbundling. More and more, management has come to rely on rigorous business case analysis to compensate for the magnitude of AMR projects on the utility and the scarcity of financial resources. One can now expect the Chief Financial Officer and the Vice President Finance to become active players on AMR project teams in the fields of business case scrutiny and approval. Increasingly, the normal expertise of AMR personnel does not suffice to build a business case acceptable to finance. The financial and economic analysis skills required are ever more complex.

Financial System of Malaysia: the Concept of Financial Dispute

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Evgenia E. Frolova

2017-01-01

Full Text Available Purpose: the article examines the main problems associated the new regulatory acts of Malaysia – the Financial Services Act of 2013 and the Islamic Financial Services Act of 2013; The characteristics of the legal status of the "Ombudsman for financial services" are listed, types of financial disputes subject to settlement under the "financial ombudsman scheme" are listed, parties to the financial dispute are identified. To achieve this goal, the article must solve the following tasks: to determine whether there are institutions in Malaysia that provide services for resolving financial disputes; to investigate the main problems associated with the definition of the concept and types of financial dispute, the conditions for the transfer of a financial dispute to the competent authority. Methods: this article is based on an interdisciplinary concept of research, which allowed to distinguish the distinctive features of the legal regulation of the settlement of financial disputes in Malaysia. Results: according to the provisions of the new laws of Malaysia, namely the Financial Services Act of 2013 and the Islamic Financial Services Act of 2013, a financial dispute should be understood as a dispute, to which the parties are a financial consumer and a financial service provider provider. Financial disputes include disputes in the field of insurance and Islamic insurance, as well as disputes over bank cards, bank accounts, ATMs, Internet banking, mobile banking, and others. The main body for the settlement of financial disputes is the Financial Ombudsman. The competence of the financial ombudsman is limited by the amount of the claim of 250,000 ringgit (about 4.5 million rubles, under insurance claims – 10,000 ringgit, in the field of unauthorized transactions – 25,000 ringgit. The procedure for resolving a financial dispute, which in Malaysia is referred to as the "scheme of a financial ombudsman", is established by the Central Bank of Malaysia

Financial Distress in Small and Medium Enterprises (SMES of Bangladesh: Determinants and Remedial Measures

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Mohammad Saleh JAHUR

2012-06-01

Full Text Available Financial distress in SMEs is a common phenomenon across the world, which has been a subject matter of academicians, professionals and government. Although SMEs are contributing to the economy in the form of employment, supply of products and services by using indigenous technologies, social entrepreneurship, income generating activities etc. SMEs are found most vulnerable to the macro-economic as well as internal management crises. Consequently, they fall into financial distress. In view of this, the present study has been undertaken aiming at identifying the causes of financial distress in SMEs of Bangladesh. The study has employed both financial and statistical techniques for analyzing the data collected for the study. The study has identified some potential problem areas related to financial distress such as rate adequacy, sales trends, indebtedness, management capability, financial planning, etc. The study has also identified some most important causes of financial distress such as fund management & resource crunch, poor accounting system, poor financial control, poor productivity and profitability and management succession. The study has finally come out some strategic and policy related measures for both viable and financially distressed SMEs for preventing them from the exposition to financial and operating risk.

The Usefulness of Financial Statements in Making Financial Diagnosis

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Mitica Pepi

2016-01-01

Full Text Available Our research aims to develop an analysis of the usefulness of financial statements and financial investment in making the diagnosis. Financial analysis is by definition an activity that performance condition is diagnosed entity of the financial year. Financial analysis shall be determined by strengths and weaknesses of financial management based on which will underpin future strategy of the entity to maintain and develop it into a competitive environment. Results of financial analysis depends on the quality, accuracy, relevance and effectiveness of economic information collected and processed. The primary sources of information for financial analysis are the financial statements, which are considered as raw material in the analysis.

PROFITABILITY AND FINANCIAL STABILITY

OpenAIRE

CĂRUNTU CONSTANTIN; LĂPĂDUŞI MIHAELA LOREDANA

2011-01-01

The business activity allows identifying two categories of flows: flows of results and cash flows. Flows affect the income and expenses, participating in training result, the company's profitability. Financial flows involved in their formation both monetary items (which drive the monetary input or output and thus implies a cash flow), and non-cash items (affecting the result, without leading to a cash flow). Are equally identifiable cash flows that do not involve an ...

Does financial education impact financial literacy and financial behavior, and if so, when?

OpenAIRE

Kaiser, Tim; Menkhoff, Lukas

2017-01-01

A meta-analysis of 126 impact evaluation studies finds that financial education significantly impacts financial behavior and, to an even larger extent, financial literacy. These results also hold for the subsample of randomized experiments (RCTs). However, intervention impacts are highly heterogeneous: financial education is less effective for low-income clients as well as in low- and lowe...

Measuring financial performance: an overview of financial statements.

Science.gov (United States)

Dalsted, N L

1995-07-01

Financial management has emerged as a critical component in the long-term viability of today's ranches and farms. Proper and timely financial reporting and analysis of financial statements are valuable tools that agricultural producers can use to monitor, coordinate, and plan their operational production and marketing schemes and strategies. A side note to preparation of financial statements. With the concerns over lender liability issues associated with statements either assisted with or prepared by a lending officer, agricultural producers will be responsible for preparing their own statements. The lending institutions may prepare their own statements in their assessment of the financial condition of a business and or individual, but, ultimately, the responsibility of financial statements is the borrower's. Some of the material presented in this article provides important input for use in such analytical programs as the National Cattlemen's Association, Integrated Resource Committees, and Standard Performance Analysis (SPA). SPA techniques and associated software have been or currently are under development for cow-calf, stocker, seedstock, and sheep enterprises. Critical to the analysis is having complete and correct financial statements. These analytical programs build on the financial statements. These analytical programs build on the financial statements as recommended by the FFSTF. Proper financial reporting is critical not only to a SPA assessment but also to the overall financial management of today's farms and ranches. Recognizing the importance of financial management in production agriculture is not enough, taking a proactive stance in one's financial plan is paramount to success. Failure to do so will only enhance the exit rates of producers from production agriculture.

[Attempted suicide during the financial crisis in Athens].

Science.gov (United States)

Stavrianakos, K; Kontaxakis, V; Moussas, G; Paplos, K; Papaslanis, T; Havaki-Kontaxaki, B; Papadimitriou, Gn

2014-01-01

Suicidal behavior is considered as the result of complex cognitive and emotional processes and it is a timeless, global and multifactorial phenomenon. Periods of financial crises in the past, such as the Great Depression in the USA in 1929 and the economic crises of Asia, Russia and Argentina in the late 1990s, have been associated with impairment of mental health of the economically affected. Unemployment, job insecurity, debts, poverty and social exclusion seems to lead to higher incidence of anxiety and depressive symptoms and increased suicidality. Alcohol and substance use and the reduction of the state budget for health services reinforce the negative effects of the economic recession on mental health. The financial crisis which currently affects many European countries began in 2008 and its impact on the mental health of European citizens is in progress. Greece is probably the most affected country by the European financial crisis. The aim of this study is to investigate the potential impact of the crisis' consequences on the attempted suicide rates in the Athens population and the differentiation of suicide attempters on social, demographic and clinical-psychopathological parameters during the crisis. A retrospective study was conducted. The semi-structured records of 165 attempters who were hospitalized in the Internal Medicine Clinics of the "Sotiria" General Hospital in Athens, after attempted suicide in the years 2007 and 2011, before and during the financial crisis respectively, were studied. Among suicide attempters 95(57.6%) were suffering from mental disorders. Most often diagnoses were these of mood disorders (n=60, 63.2%). Demographic data, current psychiatric disorder, previous suicide attempt and severity of psychopathology at the time of suicide attempt were recorded for each patient. Furthermore, the severity of each suicide attempt was estimated. Suicide attempts were 70 in 2007, before the financial crisis (mean age 36.9 years, 71% women

Financial Analysis of the Financial Institutions Sector in Kosovo

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Vlora Prenaj

2015-12-01

Full Text Available Paper work “Financial analysis of the financial institutions sector in Kosovo” treats financial sector in Kosovo. Paper work contains the current position of the economy, economic prospects and macroeconomic projections for the financial sector in Kosovo, future potential and possibilities of financial sector in Kosovo. The main goal of this research is financial analysis of Kosovo financial institutions sector - overview of key indicators. This research evaluates the performances of commercial bank’s profitability, which have operated in the market during the period 2006-2012. This research is conducted through financial analysis coefficients: Return on Equity, Return on assets and Cost to Income. Test t-Student is used to analyze the profitability for the period 2006/2007 before the financial crisis and the period 2011/2012 after financial crisis.

Financial Structure and Economic Development in Nigieria

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Ph. D. Olusegun Olowe

2012-05-01

Full Text Available In this study , the measurement of the Nigerian financial interrelation ratio was considered in line with the structure and development of financial system between 1999 and 2008 with a view to examining the incidences of the financial liberalization . The financial intermediation role for Nigeria on current basic prices was computed to determining the extent of stability and /or positive cum negative changes. This is to ensure the involvement of government as well as thedegree of financial institutions’ involvement in the economic growth and development of the country. In essence, the results of this study will be of relevance to formulate and execute policy formulation in its entirety. The result of the study revealed a pure neglect in the country with emphasis on financial intermediation. The earlier we put an enhanced financial structure in place, , the better for the economy.

Fiscal policy and its implications for monetary and financial stability

OpenAIRE

Bank for International Settlements

2011-01-01

The BIS 10th Annual Conference took place in Lucerne, Switzerland on 23-24 June 2011. The event brought together senior representatives of central banks and academic institutions, who exchanged views on the conference theme of "Fiscal policy and its implications for monetary and financial stability". This volume contains the opening address of Stephen Cecchetti (Economic Adviser, BIS), a keynote address from Martin Feldstein, and the contributions of the policy panel on "Fiscal policy sustain...

Adult Work Commitment, Financial Stability, and Social Environment as Related to Trajectories of Marijuana Use Beginning in Adolescence

OpenAIRE

Brook, Judith S.; Lee, Jung Yeon; Finch, Stephen J.; Seltzer, Nathan; Brook, David W.

2013-01-01

The objective is to examine trajectories of marijuana use among African Americans and Puerto Ricans from late adolescence to adulthood, with attention paid towards work commitment, financial stability, drug use and violence. (N=816.) The chronic marijuana user trajectory group compared to the none or low, increasing, and/or moderate marijuana user trajectory group was associated with negative aspects of work commitment, financial stability, and the social environment. The chronic marijuana us...

Financial Economy and Financial System: Basis of Structural Interconnection

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Khorosheva Olena I.

2014-02-01

Full Text Available The goal of the article lies in identification of grounds of interconnection of the financial economy and financial system. The study was conducted with consideration of main provisions of the theory of finance and concept of financial economy, which is a set of means used in the process of reproduction of finance by their owner for formation and / or maintenance of the own system of values in the viable state. For the first time ever the structure of the financial system is identified as an aggregate of financial economies and financial market. The article justifies a necessity of expansion of boundaries of perception of the state financial economy, which is offered to include public financial economy of the state level and the set of financial economies of the state as a subject of economic activity. Such an approach forms a base for justification of the synthesis of participation of the state in financial relations as the owner and as the basic macro-economic regulator. Prospects of further study in this direction are: development of classification of financial economies; revelation of specific features of impact of shadow finance on development of the national financial economy; and assessment of possibilities of inclusion of structured financial products into the system of values of financial economies in Ukraine.

The food, fuel, and financial crises affect the urban and rural poor disproportionately: a review of the evidence.

Science.gov (United States)

Ruel, Marie T; Garrett, James L; Hawkes, Corinna; Cohen, Marc J

2010-01-01

The vulnerability of the urban poor to the recent food and fuel price crisis has been widely acknowledged. The unfolding global financial crisis, which brings higher unemployment and underemployment, is likely to further intensify this vulnerability. This paper reviews the evidence concerning the disproportionate vulnerability of the urban compared with the rural poor to these types of shocks. It reviews some of the unique characteristics of urban life that could make the urban poor particularly susceptible to price and financial shocks and summarizes the evidence regarding the disproportionate vulnerability of the urban poor. The focus is on impacts on poverty, food insecurity, and malnutrition. The review shows that although the urban poor are clearly one of the population groups most affected by the current (and previous) crises, the rural poor, landless, and net buyers are in no better position to confront the crisis without significant suffering. The poorest of the poor are the ones who will be most affected, irrespective of the continent, country, or urban or rural area where they live. The magnitude and severity of their suffering depends on their ability to adapt and on the specific nature, extent, and duration of the coping strategies they adopt. A better understanding of how these coping strategies are used and staggered is critical to help design triggers for action that can prevent households from moving to more desperate measures. Using these early coping strategies as early warning indicators could help prevent dramatic losses in welfare.

The Interaction Between FX and Credit Risk as an Example of Intersection of Monetary and Financial Stability Policy Goals – The Case of Serbia

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Jović Željko

2016-05-01

Full Text Available The financial system of Serbia is highly bank-centric and euroised, which is a common specific feature of financial systems in developing countries. High level of euroisation represents an adequate environment for the development of emphasized interaction of foreign exchange and credit risks; therefore, creation of the spillover mechanism of foreign exchange risk to credit risk is immanent for euroised systems. Although maintaining the stability of the dinar exchange rate is a secondary goal of the National Bank of Serbia in relation to price and financial stability as the primary goals, in terms of existence of the aforesaid spillover mechanism, maintaining stability of the dinar exchange rate represents the area where there is an interaction between the goals of monetary policy (price stability and those of financial stability policy (maintaining and strengthening the financial system’s stability. In order to explore whether the spillover mechanism of foreign exchange risk to credit risk exists in Serbia’s financial system, the vector autoregressive (VAR model is applied on data from the Serbian banking sector to quantify the impact of changes in the dinar exchange rates on the rate of non-performing loans (NPLs; the sample was formed in the period of increased instability of the dinar exchange rate, from 31 January 2008 to 31 December 2010. As we have quantitatively confirmed the impact of increase in the dinar exchange rate on the increase of 90-120 days past due NPLs, we can conclude that the existence of expressed interaction between foreign exchange risk and credit risk in the Serbian financial system represents a paradigm of the regulator’s need to achieve contemporary goals of monetary and financial stability policy by maintaining relative stability of the dinar exchange rates. Depreciation of the local currency has inflationary pressure on price stability and simultaneously influences the achievement of financial stability goals

FINANCIAL INFORMATION, EFFECTS OF FINANCIAL INFORMATION ON ECONOMIC DECISION

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TAK ISA

2010-12-01

Full Text Available Financial information has, indisputably, an important effect in economics. To form an effective capital market, financial information must be reliable and accurate. Misleading financial information always has a negative impact on economic decision taken by users. It is known that financial information as the cornerstone of financial markets, can improve economic performance in several ways. Nowadays we are facing economic crisis due to irregularities of presentation of financial statements to users. Misunderstandings cause economic recession. Detection of fraudulent financial information, is an important issue facing the auditing profession. Currently, bankruptcy of companies around the world, leaves millions of people without jobs, this is caused by financial information which is manipulated by companies. The purpose of this paper is to analyze the effects of errors and manipulation committed in the financial information sector on the real economy. Also one of the purposes of this paper is to analyze error and fraud in financial statements how it effects the real economy and the reasons for committing fraud in financial statements. Also, several suggestions are included in this study about actions that can be taken to prevent errors and manipulation in financial information.

CHALLENGES OF FINANCIAL AUDIT - THE IMPACT OF INTRODUCING UNIQUE REGULATION OF FINANCIAL MARKETS IN ROMANIA

Directory of Open Access Journals (Sweden)

Mitica Pepi

2013-07-01

Full Text Available The theme of our research is related to the new type of relationship between financial audits (statutory and unique regulation of financial markets in Romania.The Romanian authorities have decided as from 2013 regulation of financial markets, capital market, insurance market and private pensions market to achieve by a single entity, this situation will also lead to a number of challenges in the relationship between the auditor and the new regulatory regime. The main elements of our study are: the relationship between the audit committee and regulatory authority; quality of financial reporting for financial market entities. The auditor plays an important role in financial markets because it certifies the financial statements in accordance with European Union practice . It is also interesting to note potential interference that can occur in single regulation between compliance audit and financial stability and return on investment between performance audit and financial markets.In this case, financial regulation can coexist with compliance audit. EU legislation recommends that the auditor discuss with the audit committee the quality and acceptability of the financial reporting process.This recommendation is what should constitute a possible consensus to be highly unlikely between audit committees would align auditors in financial reporting disputes with management financial entities. In this regard, auditors should identify the factors we consider important in determining the quality of financial reporting. .We conducted this research in an effort to identify the possible divergence between the type of regulations that can emit single regulatory authority and the audit process. New regulator will operate on two levels, issue general regulations apply to all three categories of financial markets, capital market, insurance market and private pensions market, but in the same time and in greater extent will issue specific regulations of each market in

Competition and Profitability in European Financial Services

DEFF Research Database (Denmark)

Balling, Morten; Lierman, F.; Mullineux, A.

Financial services firms play a key role in the European economy. The efficiency and profitability of these firms and the competition among them have an impact on allocation of savings, financing of investment, economic growth, the stability of the financial system and the transmission of monetary...... policy. This collection of research contributions includes evaluations of trends in the European financial service industry and examinations of the driving forces of efficiency, competition and profitability of financial firms and institutions in Europe. The papers have been written by leading academics...... and researchers in the field, who specialize in strategic, systematic and policy issues related to the European financial services industry. This edited collection will be will be essential reading for students and academics but will also be of interest to financial practitioners and government officials...

Untangling complex networks: risk minimization in financial markets through accessible spin glass ground states.

Science.gov (United States)

Lisewski, Andreas Martin; Lichtarge, Olivier

2010-08-15

Recurrent international financial crises inflict significant damage to societies and stress the need for mechanisms or strategies to control risk and tamper market uncertainties. Unfortunately, the complex network of market interactions often confounds rational approaches to optimize financial risks. Here we show that investors can overcome this complexity and globally minimize risk in portfolio models for any given expected return, provided the relative margin requirement remains below a critical, empirically measurable value. In practice, for markets with centrally regulated margin requirements, a rational stabilization strategy would be keeping margins small enough. This result follows from ground states of the random field spin glass Ising model that can be calculated exactly through convex optimization when relative spin coupling is limited by the norm of the network's Laplacian matrix. In that regime, this novel approach is robust to noise in empirical data and may be also broadly relevant to complex networks with frustrated interactions that are studied throughout scientific fields.

Untangling complex networks: Risk minimization in financial markets through accessible spin glass ground states

Science.gov (United States)

Lisewski, Andreas Martin; Lichtarge, Olivier

2010-08-01

Recurrent international financial crises inflict significant damage to societies and stress the need for mechanisms or strategies to control risk and tamper market uncertainties. Unfortunately, the complex network of market interactions often confounds rational approaches to optimize financial risks. Here we show that investors can overcome this complexity and globally minimize risk in portfolio models for any given expected return, provided the margin requirement remains below a critical, empirically measurable value. In practice, for markets with centrally regulated margin requirements, a rational stabilization strategy would be keeping margins small enough. This result follows from ground states of the random field spin glass Ising model that can be calculated exactly through convex optimization when relative spin coupling is limited by the norm of the network’s Laplacian matrix. In that regime, this novel approach is robust to noise in empirical data and may be also broadly relevant to complex networks with frustrated interactions that are studied throughout scientific fields.

GOVERNING EUROPEAN UNION TO FINANCIAL STABILITY

Directory of Open Access Journals (Sweden)

Ion-Lucian CATRINA

2012-09-01

Full Text Available In the last four years, a significant part of the European Union members has recorded a real decline in the sustainability of their public debt. The failure of Greece, Italy, Belgium or Spain to easily find funding at previous interest rates has induced the fear that the European Monetary Union would disintegrate. Such as scenario is not realistic because does not take into account the economic interdependencies that have been created between the countries participating at the monetary zone. Nevertheless, we can say that the Stability and Growth Pact which aimed towards the coordination of national fiscal policies for ensuring the stability and prudence of the budgetary climate, has failed. This failure was primarily due to the lack of specific sanctions for those members that have not fought against the fiscal imbalances and secondly to the stopping the steps forward towards a common fiscal policy. Thus, we can say that the European Monetary Union is driven now by the wrong rule of “no taxation with representation”. For these reasons, this paper aims at showing that the European fiscal federalism is still far away from becoming reality and that the new instruments chosen for the new stability of the European Monetary Union will be the task of the Member States themselves. This paper will also review the main rules that are projected to be the source for the future European financial stability and growth: the balanced budgets and the deficits built only on the “Golden Rule” premises, for which other amendments on European Treaties are expected.

Disclosure of Non-Financial Information: Relevant to Financial Analysts?

OpenAIRE

ORENS, Raf; LYBAERT, Nadine

2013-01-01

The decline in the relevance of financial statement information to value firms leads to calls from organizational stakeholders to convey non-financial information in order to be able to judge firms' financial performance and value. This literature review aims to report extant literature findings on the use of corporate non-financial information by sell-side financial analysts, the information intermediaries between corporate management and investors. Prior studies highlight that financial ana...

Financial globalisation uncertainty/instability is good for financial development

OpenAIRE

Asongu, Simplice A.; Koomson, Isaac; Tchamyou, Vanessa S.

2015-01-01

Purpose – This study assesses the effect of time-dynamic financial globalisation uncertainty on financial development in 53 African countries for the period 2000-2011. Design/methodology/approach – Financial globalisation uncertainty is estimated as time-dynamic to capture business cycle disturbances while all dimensions identified by the Financial Development and Structure Database of the World Bank are employed, namely: financial depth (money supply and liquid liabilities), financial sy...

The Financial Turbulence in the Economy: Case of Ukraine

OpenAIRE

Iryna Novikova

2016-01-01

The article analyzes the causes and consequences of violation of financial stability. The famous historical examples of inflationary bursts emerging have been showed, as well as ways of establishing financial equilibrium. In particular, the article states that the main cause of violations of financial stability becomes inflationary boom, which arose by wars, socio-economic and political contradictions. The paper examines the impact of modern social and economic challenges on growth in inflati...

Spring 2008 Industry Study: Financial Services Industry

Science.gov (United States)

2008-01-01

04/24/can-wall-street-regulate- itself/. Mishkin , Frederic S. and Stanley G. Eakins. Financial Markets and Institutions . 4th ed. 2004, Addison...Security Strategy that designates as a priority the “pressing for open markets , financial stability, and deeper integration of the world economy.”1...were lured to new, innovative, and often very complex financial vehicles. In order to address the shortcomings of the free market , new regulatory

College Students and Financial Distress: Exploring Debt, Financial Satisfaction, and Financial Anxiety

Science.gov (United States)

Archuleta, Kristy L.; Dale, Anita; Spann, Scott M.

2013-01-01

The impact of financial concerns on overall mental health has become a popular topic among researchers and practitioners. In this exploratory study, possible associations of financial anxiety were explored using a sample of 180 college students who sought services at a university peer financial counseling center in a Midwestern state. Of…

What is Good University Financial Management?

Science.gov (United States)

Taylor, Mark P.

2013-01-01

In the current and foreseeable harsh UK higher education environment, aspiring to best-practice financial management will be key to ensuring the prosperity--and indeed the survival--of any university. In this article I argue that good university financial management should provide stability to the institution, allow for investment as well as…

Evaluating a Financial Assessment Tool: The Financial Checkup

OpenAIRE

Johnson, Alena C.

2001-01-01

The purpose of this study was to evaluate The Financial Checkup program. The program consisted of a booklet called The Financial Checkup and a 1-1 y, hour workshop explaining the booklet. The booklet helps individuals evaluate their financial situation on an annual basis. It includes a net worth statement, an income and expense statement, financial ratios, a revolving savings worksheet, a retirement worksheet, a life insurance worksheet, a financial goals worksheet, and a budget worksheet. Th...

Firm Leverage and the Financial Crisis

OpenAIRE

Fatih Altunok; Arif Oduncu

2014-01-01

The firm growth dynamics is an important topic since the growth performance of firms is the main source of the economic growth in countries. Generally, crises produce a sharp decline in firms’ growth and this leads to a decline in both the level of employment and the income of households. This paper focuses on the role of firm leverage on the growth performance of the firm during the global financial crisis. We investigate whether the firms that experienced a large leverage increase before th...

EFFECTS OF RAISING CAPITAL ON FINANCIAL INDICATORS OF THE COMPANY

OpenAIRE

Gheorghe NEGOESCU

2014-01-01

The financial consequences of growth capital are different depending of accomplishing technical. In these circumstances the General Meeting of Shareholders decide to increase capital. The decision depends on the effect of increasing the potential financial capital, financial stability and financial structure of the company. Next, I will present the financial consequences of growth capital to a company profile in the petrochemical industry.

Impact of financial crisis on selected health outcomes in Europe.

Science.gov (United States)

Baumbach, Anja; Gulis, Gabriel

2014-06-01

A number of health outcomes were affected by previous financial crises, e.g. suicides, homicides and transport accident mortality. Aim of this study was to analyse the effects of the current financial crisis on selected health outcomes at population level in Europe. A mixed approach of ecologic and time trend design was applied, including correlation analysis. For eight countries, data on the economic situation (unemployment rate and economic growth) and health indicators (overall mortality, suicide and transport accident mortality) was drawn from EUROSTAT database for 2000-10. Spearman's rank correlation was applied to analyse the influence of social protection on the association between exposure and outcome variables. The financial crisis had no visible effect on overall mortality in any of the eight countries until 2010. Transport accident mortality decreased in all eight countries, in the range of 18% in Portugal to 52% in Slovenia. In contrast, suicide mortality increased in Germany (+5.3%), Portugal (+5.2%), Czech Republic (+7.6%), Slovakia (+22.7%) and Poland (+19.3%). The effect of unemployment on suicide is higher in countries with lower social spending (Spearman's r = -0.83). Clear cause-effect relations could not be established owing to the ecological study design and issues concerning data availability. However, there are clear changes in suicide and transport accident mortality after onset of the crisis, and findings are consistent with previous work. As part of this work, a comprehensive framework was developed, which can be applied to analyse health effects of financial crises in more detail. © The Author 2014. Published by Oxford University Press on behalf of the European Public Health Association. All rights reserved.

Does the European financial stability bail out sovereigns or banks : An event study

NARCIS (Netherlands)

Horváth, Bálint; Huizinga, Harry

2015-01-01

On May 9, 2010 euro zone countries announced the creation of the European Financial Stability Facility. This paper investigates the impact of this announcement on bank share prices, bank credit default swap (CDS) spreads, and sovereign CDS spreads. The main private beneficiaries were bank creditors.

SPLINE LINEAR REGRESSION USED FOR EVALUATING FINANCIAL ASSETS 1

Directory of Open Access Journals (Sweden)

Liviu GEAMBAŞU

2010-12-01

Full Text Available One of the most important preoccupations of financial markets participants was and still is the problem of determining more precise the trend of financial assets prices. For solving this problem there were written many scientific papers and were developed many mathematical and statistical models in order to better determine the financial assets price trend. If until recently the simple linear models were largely used due to their facile utilization, the financial crises that affected the world economy starting with 2008 highlight the necessity of adapting the mathematical models to variation of economy. A simple to use model but adapted to economic life realities is the spline linear regression. This type of regression keeps the continuity of regression function, but split the studied data in intervals with homogenous characteristics. The characteristics of each interval are highlighted and also the evolution of market over all the intervals, resulting reduced standard errors. The first objective of the article is the theoretical presentation of the spline linear regression, also referring to scientific national and international papers related to this subject. The second objective is applying the theoretical model to data from the Bucharest Stock Exchange

Financial Coaching's Potential for Enhancing Family Financial Security

Science.gov (United States)

Collins, J. Michael; Olive, Peggy; O'Rourke, Collin M.

2013-01-01

Financial coaching is an emerging complement to financial education and counseling. As defined in this article, financial coaching is a process whereby participants set goals, commit to taking certain actions by specific dates, and are then held accountable by the coach. In this way, financial coaching is designed to help participants bridge the…

Overcoming the hard law/soft law dichotomy in times of (financial crises

Directory of Open Access Journals (Sweden)

Rolf H. Weber

2012-03-01

Full Text Available Traditional legal doctrine calls for hard law to regulate markets. Nevertheless, in financial markets, soft law has a long tradition, not at least due to the lack of multilateral agreements in this field. On the one hand, the recent financial crisis has shown that soft law does not suffice to avoid detrimental developments; on the other hand, a straight call for hard law would not be able to manage the recognized regulatory weaknesses. Therefore, emphasis should be put on the possibilities of combining hard law and soft law; specific areas allowing realizing such kind of “combination” are organizational issues, transparency requirements, and dispute settlement mechanisms.

FINANCIAL DEPTH AND FINANCIAL ACCESS IN INDONESIA

OpenAIRE

Sigit Setiawan

2015-01-01

This study is intended to analyze the current levels of financial depth and financial access in Indonesia and to analyze the factors affecting them. The analysis method used was a combination of descriptive quantitative, benchmarking, and literature reviews. The conclusion is that the financial depth in Indonesia has not shown a satisfactory level since it was the lowest, or the second lowest ranked country among the sampled countries. Meanwhile, the financial access in Indonesia is relativel...

Materiality from financial towards non-financial reporting

OpenAIRE

Chiara Mio

2013-01-01

The article aims at discussing the evolution of the concept of materiality in financial and, more specifically, non-financial reporting. Materiality will play a central role in the next years in order for reports to reach conciseness, which is at present one of the main goals both financial and non-financial reporting (in particular Integrated Reporting) aims to achieve. The article reviews the most relevant materiality frameworks and definitions and provides further insights for the advancem...

Exploring the Abyss. The Financial Crisis of 2008 ff. as a Central Topic of Problem-Centered Social Science Education

Directory of Open Access Journals (Sweden)

Thorsten Hippe

2010-07-01

Full Text Available The financial crisis of 2008 ff. and financial crises in general should be a central topic of social science education because these crises are a recurrent and therefore structural feature of modern capitalism which has severe consequences for citizens’ quality of life. Hence, the citizenry should know how to prevent such developments which endanger its well-being in a massive way. Therefore, learners should understand the relationship between the quality of people’s everyday lives and those economic institutions and political decisions which have led to the current mess. They should be enabled to critically evaluate the current misregulation of the financial sector and the economy in order to identify possible policy measures to prevent or at least to mitigate future crises. By educating (young citizens in this way, the (future general public can – as a necessary counterweight to the lobbyism of the finance industry – exert more prudent political pressure which gives politicians a greater incentive to regulate the financial sector and the economy in a manner which is beneficial for the vast majority of the people instead of for a small elite. Two core concepts of the social sciences can be used to make the roots of the seemingly complex topic more understandable for learners: liability and inequality.

Late Financial Distress Process Stages and Financial Ratios

DEFF Research Database (Denmark)

Sormunen, Nina; Laitinen, Teija

2012-01-01

stage affects the classification ability of single financial ratios and financial distress prediction models in short-term financial distress prediction. The study shows that the auditor's GC task could be supported by paying attention to the financial distress process stage. The implications...... of these findings for auditors and every stakeholder of business firms are considered....

Reconfiguring the Financial Markets

Directory of Open Access Journals (Sweden)

Ion Bucur

2009-12-01

Full Text Available The debut of the new millennium is marked by the increased economic and social imbalances. An important task of economic science is to identify the causes and factors that contributed to the radical transformation of the unfolding conditions of economic activity. The existence of different perspectives to approach the new realities may offer greater opportunities for decrypting the conditions that generated so far unknown developments, as well as for shaping solutions to promote new paths of progress and civilization. The defining with profound implications on the economy and society is represented by the globalization. From this perspective, we have analysed the new dimensions of capital accumulation and economic growth in the context of deregulation and liberalization of the international capital movements. In this context, we have noticed the increasing influence of the financial markets on the economy, the tendency to remove the finances from the real economy requirements, the growing role of external financing using more volatile capital goods, increased competition regarding the access to financing, the significant increase of power of the international capital markets whose characteristic is represented by the increased instability, the implications of the investors’ obsession with an excessive profitableness of their own funds and the expansion of using sophisticated financial products. Realities of today’s financial markets, which are the subject of numerous studies and analysis, have contributed to the association of the arguments that are contesting the thesis on the virtues of self-regulation markets and promoting a new paradigm, within which finances should subordinate the requirements of a balanced and sustained economic growth.

DOE financial assurance presentation

International Nuclear Information System (INIS)

Huck, R.

1990-01-01

The presentation topic is California's approach to license application review in meeting financial assurances for the proposed Ward Valley site. The purpose of the presentation is to provide information on specific financial assurance provisions contained in 10 CFR Part 61 and how California intends to satisfy those requirements. Also, as rate setter, California intends to demonstrate how it will assure allowable costs to the rate base though a financial prudency review. The key provisions of financial assurance are: 10 CFR Section 61.61 - This provision requires an applicant to demonstrate its ability to finance licensed activities; 10 CFR Section 61.62 - This provision requires an applicant to provide assurance that sufficient funds will be available for site closure and stabilization; and 10 CFR Section 61.63 - This provision requires an applicant to provide 'a copy of a binding arrangement, such as a lease, between the applicant and the disposal site owner, so that sufficient funds will be available to cover the costs of the institutional control period.' To assist California in its determination of financial assurance compliance to be demonstrated by the applicant for Part 61 requirements, is NUREG guidance document 1199 'Standard Format and Content of a License Application for a Low-Level Radioactive Waste (LLRW) Disposal Facility.' The detailed financial assurance provisions of NUREG 1199 are then embodied in NUREG 1200, 'Standard Review Plant for the Review of a License Application for a LLRW Disposal Facility.'

FINANCIAL DEPTH AND FINANCIAL ACCESS IN INDONESIA

OpenAIRE

Sigit Setiawan

2015-01-01

This study is intended to analyse the current levels of financial depth and financial access in Indonesia and to analyse the factors affecting them. The analysis method used was a combination of descriptive quantitative, benchmarking, and literature reviews. The conclusion is that the financial depth in Indonesia has not shown a satisfactory level since it was the lowest, or the second lowest ranked country among the sampled countries. Meanwhile, the financial access in Indonesia is relativel...

Financial Depth and Financial Access in Indonesia

OpenAIRE

Setiawan, Sigit

2015-01-01

This study is intended to analyse the current levels of financial depth and financial access in Indonesia and to analyse the factors affecting them. The analysis method used was a combination of descriptive quantitative, benchmarking, and literature reviews. The conclusion is that the financial depth in Indonesia has not shown a satisfactory level since it was the lowest, or the second lowest ranked country among the sampled countries. Meanwhile, the financial access in Indonesia is relativel...

EFFECTS OF RAISING CAPITAL ON FINANCIAL INDICATORS OF THE COMPANY

Directory of Open Access Journals (Sweden)

Gheorghe NEGOESCU

2014-06-01

Full Text Available The financial consequences of growth capital are different depending of accomplishing technical. In these circumstances the General Meeting of Shareholders decide to increase capital. The decision depends on the effect of increasing the potential financial capital, financial stability and financial structure of the company. Next, I will present the financial consequences of growth capital to a company profile in the petrochemical industry.

The impact of the financial crisis on the Romanian advertising market

Directory of Open Access Journals (Sweden)

Radbâţă, A.

2010-12-01

Full Text Available The financial crisis reduces the efficiency of advertising rather than its quantum. Many institutions fail to realize that reducing the quantity of advertisement will not save them from the financial crisis. When companies cut their marketing and advertising budgets, they reduce the exposure of goods and services to the consumers. This is the reason why they see their sales going down significantly. Companies should focus on introducing promotional campaigns and build a long term relationship with their consumers. Throughout the article, the author will present a few favourable solutions to get out of advertising crises.

Investments in the Brazilian electric sector and the financial crisis

International Nuclear Information System (INIS)

Vela, Jorge Alberto Alcala; Oliveira, Andre Luis Cantuaria Cardoso

2010-01-01

The electricity sector in addition to being a public utility, requires a substantial investment, explore natural resources and the basis of all production chains and consumption of our society. The dynamics of this sector goes beyond the individual performance of energy companies and will also interfere in matters of political, economic, social and environmental development of nations. The lack of sophistication and low level of development in credit derivatives financial systems in Brazil, both as a healthy situation of the accounts and balance sheets, the fruit of bitter experience in past crises are allowing a better resistance to weather the current crisis. But it is an important trading partner of Brazil, through various business financial economic crises that is affecting the U.S. economy and the world has also affected the economy of our country, but with less intensity. The econometric model used to study the investment to be initiated in 2010 by ELETROBRAS meets a correlation acceptable; this demonstrates that a well dependence exists between power and investment to the projects to be implemented. (author)

Predicting Bank Financial Failures Using Discriminant Analysis And Support Vector Machines Methods A Comparative Analysis In Commercial Banks In Sudan 2006-2014

Directory of Open Access Journals (Sweden)

Mohammed A. SirElkhatim

2017-04-01

Full Text Available Bank failures threaten the economic system as a whole. Therefore predicting bank financial failures is crucial to prevent andor lessen its negative effects on the economic system. Financial crises affecting both emerging markets and advanced countries over the centuries have severe economic consequences but they can be hard to prevent and predict identifying financial crises causes remains both science and art said Stijn Claessens assistant director of the International Monetary Fund. While it would be better to mitigate risks financial crises will recur often in waves and better crisis management is therefore important. Analyses of recurrent causes suggest that to prevent crises governments should consider reforms in many underlying areas. That includes developing prudent fiscal and monetary policies better regulating the financial sector including reducing the problem of too-big-to-fail banks and developing effective macro-prudential policies. Despite new regulations and better supervision crises are likely to recur in part because they can reflect deeper problems related to income inequality the political economy and common human behavior. As such improvements in crisis management are also needed. This is originally a classification problem to categorize banks as healthy or non-healthy ones. This study aims to apply Discriminant analysis and Support Vector Machines methods to the bank failure prediction problem in a Sudanese case and to present a comprehensive computational comparison of the classification performances of the techniques tested. Eleven financial and non-financial ratios with six feature groups including capital adequacy asset quality Earning and liquidity CAMELS are selected as predictor variables in the study. Credit risk also been evaluated using logistic analysis to study the effect of Islamic finance modes sectors and payment types used by Sudanese banks with regard to their possibilities of failure. Experimental results

Adolescents' Financial Literacy: The Role of Financial Socialization Agents, Financial Experiences, and Money Attitudes in Shaping Financial Literacy among South Korean Youth

Science.gov (United States)

Sohn, Sang-Hee; Joo, So-Hyun; Grable, John E.; Lee, Seonglim; Kim, Minjeung

2012-01-01

The purpose of this study was to test the relationships between financial socialization agents, financial experiences, money attitudes, demographic characteristics, and the financial literacy of Korean adolescents. Using the 2006 Korean National Financial Literacy Test Survey for Adolescents (N = 1185), a series of regression analyses were…

Fraud diamond: Detection analysis on the fraudulent financial reporting

Directory of Open Access Journals (Sweden)

Stefani Lily Indarto

2016-11-01

Full Text Available The accounting scandal became one of the reasons for analyzing financial statements in order to minimize fraud against the financial reporting. Therefore, companies use the services of a public accountant to audit the financial statements of companies that are expected to limit the fraudulent practices that increase the public’s confidence in the company’s financial statements. This study aims to detect fraud by using analysis of fraud diamond . This study takes banking companies listed on the Indonesian Stock Exchange in 2009-2014, with a total sample of 149 banks. Based on the results the external pressure, financial stability and capability have influence on fraudulent financial reporting. While target financial, ineffective monitoring and rationalization does not affect the fraudulent financial reporting

Can Basel III Prevent Future Financial Crisis?

OpenAIRE

Madzova, Violeta

2012-01-01

The financial sector is crucial for the smooth functioning of the economy. For this reason, the authorities use financial regulation as a means to ensure the stability of the banking system and to correct those ‘market failures’ that would otherwise threaten the solidity of financial institutions. Recently introduced Basel III on the new bank capital and liquidity standards, (that is going to be implemented gradually starting from 2013 till 2019) is changing the way that banks address the...

Quantifying trading behavior in financial markets using Google Trends.

Science.gov (United States)

Preis, Tobias; Moat, Helen Susannah; Stanley, H Eugene

2013-01-01

Crises in financial markets affect humans worldwide. Detailed market data on trading decisions reflect some of the complex human behavior that has led to these crises. We suggest that massive new data sources resulting from human interaction with the Internet may offer a new perspective on the behavior of market participants in periods of large market movements. By analyzing changes in Google query volumes for search terms related to finance, we find patterns that may be interpreted as "early warning signs" of stock market moves. Our results illustrate the potential that combining extensive behavioral data sets offers for a better understanding of collective human behavior.

Analyzing the impact of global financial crisis on the interconnectedness of Asian stock markets using network science

OpenAIRE

Jitendra Aswani

2015-01-01

As importance of Asian Stock Markets (ASM) has increased after the globalization, it is become significant to know how this network of ASM behaves on the onset of financial crises. For this study, the Global Financial Crisis is considered whose origin was in the developed country, US, unlike the Asian crisis of 1997. To evaluate the impact of financial crisis on the ASM, network theory is used as a tool here. Network modeling of stock markets is useful as it can help to avert the spillover of...

The multi-layer network nature of systemic risk and its implications for the costs of financial crises

NARCIS (Netherlands)

Poledna, S.; Molina-Borboa, J.L.; Martínez-Jaramillo, S.; van der Leij, M.; Thurner, S.

2015-01-01

The inability to see and quantify systemic financial risk comes at an immense social cost. Systemic risk in the financial system arises to a large extent as a consequence of the interconnectedness of its institutions, which are linked through networks of different types of financial contracts, such

Financial Ratios and Perceived Household Financial Satisfaction

Directory of Open Access Journals (Sweden)

Scott Garrett

2013-08-01

Full Text Available This paper tests the relative strength of three objective measures of financial health (using the solvency, liquidity, and investment asset ratio in predicting a household’s subjective feeling of current financial satisfaction. Using a sample of 6,923 respondents in the 2008 Health and Retirement Study this paper presents evidence of two main findings: 1 the solvency ratio is most strongly associated with financial satisfaction levels based on a cross-sectional design and 2 changes in the investment asset ratio are most strongly associated with changes in financial satisfaction over time.

75 FR 79982 - Authority To Designate Financial Market Utilities as Systemically Important

Science.gov (United States)

2010-12-21

... among financial institutions or markets and thereby threaten the stability of the financial system of... of significant liquidity or credit problems spreading among financial institutions or markets and... would have on critical markets, financial institutions, or the broader financial system; and (E) Any...

THE FINANCIAL SECTOR IN THE FINANCIAL SYSTEM ECONOMY: THEORETICAL ASPECTS

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Yu. Kovalenko

2015-06-01

Full Text Available Broad and narrow approaches of the financial system are obtained. The difference between the financial system and the financial sector (the fi-nancial corporations sector is shown. Organizational and institutional matrix of the financial system of the economy is proposed. Key positions of institutional sectors classification of Ukraine’s economy are analyzed, as well as the System of National Accounts with respect to the financial sec-tor of corporations. The structure of the sector of financial corporations in Ukraine is defined.

Strengthening financial management, providing financial safeguard mechanism

International Nuclear Information System (INIS)

Sun Wumei

2010-01-01

This article reviewed the history of Zhong He Shanxi Uranium Enrichment Company, summarizing an efficient and systematical financial management method during both construction period and operational period of the company. It related to fundamental financial management structure building, integrated budgeting, fund management, cost management, asset management, tax planning and HR management. of financial staffs. (author)

Financial Stress, Financial Literacy, Counselling and the Risk of Homelessness

Directory of Open Access Journals (Sweden)

Adam Steen

2013-09-01

Full Text Available Poor financial literacy may lead to poor life choices. These life choices can create or contribute to financial stress with adverse consequences - not the least of which may be homelessness. These issues are relatively well understood, but there is limited research on the link between financial stress, financial literacy and counselling, and homelessness. Specifically, there has been little research on how improved financial literacy and appropriate financial counselling might help to prevent homelessness. This paper synthesises existing literature on this topic and considers these issues using the ABCX family stress model of Hill (1958 using data from an Australian program aimed at alleviating family homelessness, the Home Advice Program. We provide evidence that suggests that case management and support which incorporates financial counselling and financial literacy can assist in moderating the impact of financial stress and help those at risk of homelessness. The findings have implications for public policy in the areas of financial education, consumer finance, and social services provision.

The Prudential Regulation of Financial Institutions: Why Regulatory Responses to the Crisis Might Not Prove Sufficient

Directory of Open Access Journals (Sweden)

William R. White

2013-10-01

Full Text Available It is now six years since a devastating financial and economic crisis rocked the global economy. Supported strongly by the G20 process, international regulators led by the Financial Stability Board have been working hard ever since to develop new regulatory standards designed to prevent a recurrence of these events. These international standards are intended to provide guidance for the drawing up of national legislation and regulation, and have already had a pervasive influence around the world. This paper surveys recent international developments concerning the prudential regulation of financial institutions: banks, the shadow banking system and insurance companies. It concludes that, while substantial progress has been made, the global economy nevertheless remains vulnerable to possible future financial instability. This possibility reflects three sets of concerns. First, measures taken to manage the crisis to date have actually made the prevention of future crises more difficult. Second, the continuing active debate over virtually every aspect of the new regulatory guidelines indicates that the analytical foundations of what is being proposed remain highly contestable. Third, implementation of the new proposals could suffer from different practices across regions. Looking forward, the financial sector will undoubtedly continue to innovate in response to competitive pressures and in an attempt to circumvent whatever regulations do come into effect. If we view the financial sector as a complex adaptive system, continuous innovation would only be expected. This perspective also provides a number of insights as to how regulators should respond in turn. Not least, it suggests that attempts to reduce complexity would not be misguided and that complex behaviour need not necessarily be accompanied by still more complex regulation. Removing impediments to more effective self discipline and market discipline in the financial sector would also seem

FINANCIAL-ECONOMICAL ENTERPRISE SECURITY STRATEGY FORMING IN THE TERMS OF UNCONFORMITY

Directory of Open Access Journals (Sweden)

Galyna Mykhayliv

2016-03-01

Full Text Available Theoretical points as for definition of “financial-economical security” have been researched and summing up. The present attitude were analyzed as for the financial-economical enterprise security forming in the terms of unconformity and system attitude necessity stipulated for strategy system management by a financial-economical enterprise security. Keywords: financial-economical enterprise security, strategy management, financial security, economical security, financial stability, economical security, external JEL: M 20

Bank lending strategy, credit scoring and financial crises

NARCIS (Netherlands)

Dinh, T.H.T.; Kleimeier, S.; Straetmans, S.T.M.

2013-01-01

Adverse selection inherent in the bank-borrower relationship typically intensifies during crises. This problem is expecially severe in emerging markets, characterized by weak institutions and banks with poorly developed monitoring and screening abilities. Exploiting a unique sample of Vietnamese

Financial Literacy of Latvian Citizens: Findings and Conclusions

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Guna Ciemleja

2016-08-01

Full Text Available The global financial crisis and financial stability issues of the Eurozone countries have demonstrated that the total of financial knowledge and skills of the population that lets people make informed and efficient decisions is of utmost importance. Considering high social importance of financial education, it is necessary to develop a knowledge platform to increase the level of financial literacy. The results obtained in the process of assessment of the level of individual's financial literacy provide information on the factors, which reduce financial efficiency and cause unnecessary costs. Despite a vast body of international experience in the field of financial literacy assessment, one of the main problems is to develop a measuring instrument, which can ensure valid results and can be adapted to the socio-economic and demographic conditions of a definite country. Therefore, in 2015, academic personnel of the Department of Finance, Faculty of Engineering Economics and Management of Riga Technical University conducted research within the project «Enhancing Latvian Citizens' Securitability through Development of the Financial Literacy» and developed an instrument for assessment of the level of financial literacy, which can be used to evaluate financial knowledge of the Latvian citizens taking into consideration all components of financial literacy. The results are briefly described in the current paper.

Evidence of Large Fluctuations of Stock Return and Financial Crises from Turkey: Using Wavelet Coherency and Varma Modeling to Forecast Stock Return

Science.gov (United States)

Oygur, Tunc; Unal, Gazanfer

Shocks, jumps, booms and busts are typical large fluctuation markers which appear in crisis. Models and leading indicators vary according to crisis type in spite of the fact that there are a lot of different models and leading indicators in literature to determine structure of crisis. In this paper, we investigate structure of dynamic correlation of stock return, interest rate, exchange rate and trade balance differences in crisis periods in Turkey over the period between October 1990 and March 2015 by applying wavelet coherency methodologies to determine nature of crises. The time period includes the Turkeys currency and banking crises; US sub-prime mortgage crisis and the European sovereign debt crisis occurred in 1994, 2001, 2008 and 2009, respectively. Empirical results showed that stock return, interest rate, exchange rate and trade balance differences are significantly linked during the financial crises in Turkey. The cross wavelet power, the wavelet coherency, the multiple wavelet coherency and the quadruple wavelet coherency methodologies have been used to examine structure of dynamic correlation. Moreover, in consequence of quadruple and multiple wavelet coherence, strongly correlated large scales indicate linear behavior and, hence VARMA (vector autoregressive moving average) gives better fitting and forecasting performance. In addition, increasing the dimensions of the model for strongly correlated scales leads to more accurate results compared to scalar counterparts.

Modern trends of development of the world economy and financial competitiveness of enterprises

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Volkova Nadezhda

2017-01-01

Full Text Available The article considers modern trends in the development of the global economy, the dynamics of the activity of the domestic economy. The statistical data of the share of loss-making enterprises on the domestic market are analyzed. The importance of competitiveness and financial stability of enterprises in modern conditions is considered, the relationship between competitiveness and financial stability is indicated. The notion of financial competitiveness is formulated. Financial competitiveness is analyzed from the point of view of enterprise management and on the parameters for assessing the financial stability of enterprises. Methods for assessing the financial competitiveness of enterprises have been identified. The primary calculation of financial competitiveness indicators for PJSC “SF Almaz” was carried out based on the selected methods. The analysis of the obtained calculation results is carried out. Methods are proposed to ensure financial competitiveness of Russian companies.

FINANCIAL PERFORMANCE TEST OF PUBLIC BANKS IN TURKEY:AN APPLICATION OF PROMETHEE

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Ceren UZAR

2013-07-01

Full Text Available Performancetesthas become an important tool for banking sector and banksshould implement performance test if they want to increase their level ofcompetitivenessin today’shighly competitive environment. Banking sector hasalways beenveryimportant factor for developing national economy. PreferenceRanking Organization Method for Enrichment Evaluations( PROMETHEE is oneof the most recent Multiple Criteria Decision Making (MCDMmethodsand hasbeen successfully implementedin many fields.This paper argues the possibility of using PROMETHEE method for measuringthe financial performance of three public banks in Turkey by using two data sets.First data set is for the period from 2002 to 2007, and the second data set is from2008 to 2012. Two data sets are determined and used in order to compare twoperiods– before the global financial crises (2002-2007, and during the globalfinancial crises (2008-2012.PROMETHEEmethodis applied to the obtaineddata sets rigorously by usingten criteria for each bank.Theresults of thispaper showthe possibility of using thePROMETHHE methodin order to determinefinancial performance of public banks in Turkey.

Housing finance and financial stability: evidence from Malaysia, Thailand and Singapore

OpenAIRE

Hanifa, Mohamed Hisham; Masih, Mansur

2013-01-01

This paper discusses current housing finance practices in three emerging economies such as, Malaysia, Thailand and Singapore, as well as the impact of those practices on financial stability. National authorities and policymakers may find this analysis helpful as they reassess the structure and health of their housing finance systems, with particular attention given to those factors that have contributed to a stable housing finance system. The methodology used to determine the factors was pane...

39 CFR 233.5 - Requesting financial records from a financial institution.

Science.gov (United States)

2010-07-01

... INSPECTION SERVICE AUTHORITY § 233.5 Requesting financial records from a financial institution. (a... Department of the U.S. Postal Service to request financial records from a financial institution pursuant to... authorized to request financial records of any customer from a financial institution pursuant to a formal...

Exchange credit risk: Measurement and implications on the stability of partially dollarized financial systems

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Ernesto Mordecki

2013-06-01

Full Text Available Some emergent economies present a high financial dollarization in loans and deposits, generating a specific risk in the banking activity. We quantify this exchange credit risk as the price of an option equivalent to this loan, and discuss the financial stability implications due to the (implicit issuance of these options. The exchange rate is modeled through a Levy process. The depth of the market depends on the type of the currencies involved. Whenever possible, we depart from option prices to calibrate a model, like in the EUR/USD market. But if the market is not liquid, as the USD/UYU market, we provide alternative pricing methodologies.

The banking union and the financial and banking system reform in EU

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Alina Ligia Dumitrescu

2013-04-01

Full Text Available Coordination among supervisors in financial and banking system is vital, but the financial crisis has shown that is not enough, and especially in the context of a single currency would require more common actions in EU. Therefore, the European Commission proposed “the creation of a banking union”, in order to place the banking sector on a more solid base and to restore confidence in the single currency, as part of a longer-term vision for the promotion of the economic and fiscal integration. Therefore, the new direction of the reform of the financial sector is "the creation of a banking union", that will help: to strengthen banks supervision, to ensure better deposits security, to recapitalize banks and last but not least to achieve the centralized management of the banking crises.

Financial Inclusion and Monetary Policy: A Review of Recent Studies

African Journals Online (AJOL)

2017-05-01

May 1, 2017 ... financial inclusion and its implications for monetary policy and financial stability. ... These studies have discussed the implications of financial exclusion for the parameters ... and allocating capital, monitoring firms and exerting corporate ... decisions, and technological innovations and hence economic ...

Sweden; Financial Sector Assessment Program Update: Technical Note on Contingency Planning, Crisis Management and Bank Resolution

OpenAIRE

International Monetary Fund

2011-01-01

This abstract reviews the recommendations made in the FSAP Update for Sweden in the areas of contingency planning, crisis management, and bank resolution. Although Sweden crisis management fared well during the global financial crisis, its authorities are reviewing the framework for managing financial crises to incorporate crisis lessons. They recommend a domestic institutional framework, an effective cross-border cooperation, an emergency liquidity assistance (ELA), a deposit guarantee schem...

Financial Statements Analysis

OpenAIRE

Tănase Alin-Eliodor

2014-01-01

This article focuses on analyzing of a consolidated financial statements of a hypothetically SME. The interpretation of the financial position and performances is based on the more than 40 financial key ratios computed by using financial data from consolidated income statement, consolidated financial position and cash flow. However additional data from notes to financial statements are provided.

IMPACT OF THE FINANCIAL CRISIS UPON EASTERN EUROPE COUNTRIES: STILL A PROBLEM FOR THE ECONOMY OF THE REGION?

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MIHAELA-ANDREEA STROE

2011-04-01

Full Text Available The paper looks at the impact of the global economic and financial crisis on a number of central, eastern and south-eastern European countries. The global crisis can be viewed as three interdependent and mutually reinforcing crises: a financial crisis, a liquidity crisis, and a crisis in the real economy. The financial crises that have emerged and developed in the recent decades have been characterized, mostly of an international dimension, with shocks quickly propagating through capital markets, through the international banking activities and, through the money markets.East Europe was hit first by the global liquidity crisis, then by declines in capital inflows and plunging demand for their exports.Before the crisis, the Eastern region was experiencing an economic boom with rapid GDP and credit growth, but in the future East European countries will have to rely relatively more on internally-generated sources of productivity growth.

INTEGRATION OF FINANCIAL AND NON-FINANCIAL REPORTS UNDER MANAGEMENT CONDITIONS

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Mihail PRODANCIUK

2013-02-01

Full Text Available The paper presents the assessment of the development of integrated reports overseas and describes the stages of establishment of such a system. The form and structure of corporate reporting is developed, and is differentiated, reflecting the integrated information regarding aspects of financial and non-financial activity: statistical indicators, economical, financial and social, company strategy, future cash flows, the value of human capital, and the stability of the business model. Goals and objectives of corporate reports are determined, which consist in providing reliable information on all company activities in accordance with strategic objectives and management models. The structure of the integrated report takes into consideration the requirements of the management system, of the legislative bodies and other institutions, and is considered the basis for the development of branch reports models. Its structure will depend on the size of the legal-organizational form and the social value of the company in society. The author of the article suggests three approaches to achieving corporate reports in the section of social responsibility indicators; where each company chooses the form of reporting in accordance with the available categories that depend on the size and strategic policy. The suggested integrated reports are instrumental to the observance of the stable development doctrines and will become a tool that, in the near future, will ensure the company an effective interaction with financial markets and the stakeholders of market relations.

Integration of financial and non-financial reports under management conditions

Directory of Open Access Journals (Sweden)

Prodanciuk Mihail

2013-02-01

Full Text Available The paper presents the assessment of the development of integrated reports overseas and describes the stages of establishment of such a system. The form and structure of corporate reporting is developed, and is differentiated, reflecting the integrated information regarding aspects of financial and non-financial activity: statistical indicators, economical, financial and social, company strategy, future cash flows, the value of human capital, and the stability of the business model. Goals and objectives of corporate reports are determined, which consist in providing reliable information on all company activities in accordance with strategic objectives and management models.The structure of the integrated report takes into consideration the requirements of the management system, of the legislative bodies and other institutions, and is considered the basis for the development of branch reports models. Its structure will depend on the size of the legal-organizational form and the social value of the company in society. The author of the article suggests three approaches to achieving corporate reports in the section of social responsibility indicators; where each company chooses the form of reporting in accordance with the available categories that depend on the size and strategic policy. The suggested integrated reports are instrumental to the observance of the stable development doctrines and will become a tool that, in the near future, will ensure the company an effective interaction with financial markets and the stakeholders of market relations.

PROBABILISTIC PREDICTION OF BANK FAILURES WITH FINANCIAL RATIOS: AN EMPIRICAL STUDY ON TURKISH BANKS

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Gamze Özel

2014-02-01

Full Text Available Banking risk management has become more important during the last 20 years in response to a worldwide increase in the number of bank failures. Turkey has experienced a series of economic and financial crisis since the declaration of Republic and banking system has the most affected sector from the results of these crises. This paper examines some bank failure prediction models using financial ratios. Survival, ordinary and conditional logistic regression models are employed in order to develop these prediction models. The empirical results indicate that the bank is more likely to go bankrupt if it is unprofitable, small, highly leveraged, and has liquidity problems and less financial flexibility to invest itself. 

Global Financial Governance: a Perspective from the International Monetary Fund

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Ryszard Wilczyński

2011-03-01

Full Text Available An environment for the activities of the International Monetary Fund (the IMF has fundamentally changed over the two recent decades. The strong development of financial innovations as well as of financial globalisation was among major forces driving the change and shaping the economic growth worldwide. As some economies were able - with the support from financial markets – to accelerate their growth, other countries suffered from turbulences, which were reinforced and transferred internationally through the volatile financial markets. The process of international financial contagion makes the case for global financial governance, which so far has been left behind the development of markets. The IMF is mandated to play a central role in the global governance designed to ensure financial stability. The article reconsiders the Fund’s role and includes an overview and assessment of its activities, particularly in the context of the global financial crisis in 2007-2010. In the aftermath of this crisis, the international financial stability may, however, again be at risk as several external imbalances in the global economy may be hardly sustainable. It is argued in the paper that, in addition to a gradually improving surveillance and lending as well as to adjusting resources by the Fund, an enhanced credibility of the institution is needed so that its role in the process of the stabilising global financial system is strong and effective.

THE ROLE OF FINANCIAL EDUCATION IN DEVELOPING THE FINANCIAL SERVICES MARKET

OpenAIRE

Ivanka Daneva

2015-01-01

Considering the current complexity of financial markets and of financial instruments and services, financial education is part of population’s financial literacy and it ranks as paramount factor in the complex for the financial markets development.

Limits of the principle of budgetary stability with respect to the financial autonomy of the Spanish Autonomous Communities

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Carlo Alberto Ciaralli

2018-04-01

Full Text Available The constitutional reform by which in 2011 Spain amended Article 135 of the Constitution is the topic of this article. By such an amendment the principle of financial and budgetary stability as well as a strict control over the budget of public administration and the devolved regional institutions (Comunidades Autonomas has been introduced. All this amounts to severe limitations on the structural deficit. In fact, this reform has brought about a strengthening of the supervisory powers of the State over policies which the Constitution confers to the Comunidades Autonomas as well as clamping down on their financial autonomy. The thrust of the article is to show how, in time of crisis, the “financial constitution” changes its structure to adapt to the inputs coming from European rules and the financial markets.

Financial literacy and financial literacy education : what might be the components of an effective financial literacy curriculum?

OpenAIRE

Lee, Nirmala

2010-01-01

Abstract There is concern about lack of financial literacy and need for financial literacy education, but little or no attempt to understand their nature. Three questions were asked: 'What is financial literacy?', 'What is financial literacy education?' and 'What might be the components of an effective financial literacy curriculum?'. Adopting an inductive grounded theory approach and a pragmatist philosophy, in association with real-world organisations such as the National ...

76 FR 44763 - Authority To Designate Financial Market Utilities as Systemically Important

Science.gov (United States)

2011-07-27

... institutions and markets and thereby threaten the stability of the U.S. financial system.\\4\\ \\3\\ See 12 U.S.C... markets, financial institutions, or the broader financial system; and E. Any other factors that the... Markets, Financial Institutions or the Broader Financial System Subcategory (D)(1): Role of an FMU in the...

CSR Integration into the Financial Economy: A Conceptual Approach

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Georgiana - Loredana FRECEA

2016-06-01

Full Text Available Corporate social responsibility is a complex concept and its design integrates economic, social and environmental issues, pointing out the operational effects on a voluntary basis. It is considered a strategic point in the actual evolution of the economy, due to the financial market dynamism, being identified a critical correlation between financial crises and corporate social responsibility. The main purpose of this paper is to synthesize, through a literature review, the multiple dimensions of CSR, with a special emphasis on the theoretical approach. In order to provide a coherent overview on the banking CSR, it will be proposed a division of the CSR theories according to: (1 the ethical approach, (2 the stakeholders approach, and (3 the corporate governance approach. The major aim of this paper is to fill a gap in the theoretical approach of the CSR for the banking system, due to the necessity to unify the CSR reporting elements in order to find a balance between the bank’s organizational structure and their legitimacy to operate on the financial market.

Private savings and financial modernization in Mexico, 1988-95

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Julio Lopez G.

2000-09-01

Full Text Available The evolution of private savings has attracted a lot of attention in the controversy about the origins of Mexico's 1995 crisis. In this paper the authors analyze the evolution of private savings in Mexico using the theory of effective demand as a framework and making use of econometric estimates. In this context, they analyze the impact of the financial reforms, and in particular the effect of liberalization and deregulation of the financial system on private savings in Mexico from 1980 to 1995. The authors formulate an explanation of the determinants of private savingsand the impact of the strategy of "financial modernization" on private savings, by specifying a model that allows to identify the influence of monetary and credit policies on savings. Then they carry out econometric estimates that lend empirical support to the main conclusions of the theoretical analysis. Their econometric work confirm notably that private savings has been low due to a series of changes in monetary policy that favored the contraction of private demand and led to greater foreign indebtedness.

Financial Literacy as the Foundation for Individual Financial Behavior

Science.gov (United States)

Dwiastanti, Anis

2015-01-01

Research that is dealing with financial literacy turns to be such an important thing to be conducted. It is due to the fact that financial literacy level of Indonesian society is still very low. A good financial literacy is necessary for every individual to manage his/her finances to achieve prosperity. To have a good level of financial literacy,…

Financial Literacy, Financial Education and Economic Outcomes. NBER Working Paper No. 18412

Science.gov (United States)

Hastings, Justine S.; Madrian, Brigitte C.; Skimmyhorn, William L.

2012-01-01

In this article we review the literature on financial literacy, financial education, and consumer financial outcomes. We consider how financial literacy is measured in the current literature, and examine how well the existing literature addresses whether financial education improves financial literacy or personal financial outcomes. We discuss the…

FINANCIAL EQUALIZATION TRANSFERS BETWEEN PUBLIC AUTHORITIES BUDGETS

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Emilia Cornelia STOICA

2015-07-01

Full Text Available This paper presents financial balancing mechanisms that it is applied by the most of the states with competitive market economy, in order to ensure equity between local authorities, as well as the stability of the entire national tax and budgetary system. In this regard, it is described the concept of financial equalization and its structure according to two fundamental criteria: - equalization in accordance with the financial transfers orientation, distinguishing thus (1 horizontal equalization, which is carried out between local authorities and consists in assigning a part of the richest territorial collectivities resources to the disadvantaged ones; (2 vertical financial equalization, achieved through consolidated transfers the state / federal budget to the budgets by territorial administrative units, both for the operating budget section and for the development one; - financial equalization according to the regional or local disparities observed as a result of territorial-level analyzes: (1 financial equalization based on balancing public revenues of the administrative-territorial units, which tries to correct the differences between the financial resources of each local authority and (2 the financial balancing based on the costs, which aims to reduce differences between standard costs of public services per capita. Financial equalization mechanisms have as main objective the reduction as far as the total elimination of the regional or local disparities, which are also described in this article.

THE STABILITY OF INTERNATIONAL FINANCIAL MARKETS VERSUS EMERGING ECONOMIES VULNERABILITY

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Luiza Loredana Nastase

2016-12-01

Full Text Available If during the global economic and monetary-financial felt in the last seven-eight years was observed that the most affected countries were those with a developed economy currently it seems that the wheel turns and target countries with an emerging economy. Thus, the financial markets of advanced countries seem to be characterized by stability in opposition to those of emerging markets, which seem to become increasingly vulnerable. This paper tries to capture the current economic situation of the two categories of states, from the major aspects that determined the evolution of socio-political and macroeconomic indicators, presenting the statistical data and trying to predict future period. A special importance should be given to international markets. Given that the extension of global economic integration and cooperation on the international market participants are relative conditioning is required for a consensual approach and multilateral thereof, for reducing and avoiding imbalances in the international trading system. We will take into account the need to involve politics in parallel with the adoption of measures specific to each category of state. All these issues will be addressed further

Spain; Financial System Stability Assessment

OpenAIRE

International Monetary Fund

2012-01-01

This report summarizes the findings of the Financial Sector Assessment Program (FSAP) Update for Spain. Although there is a core of strong banks that are well managed and appear resilient to further shocks, vulnerabilities remain. Substantial progress has been made in reforming the former savings banks, and the most vulnerable institutions have either been resolved or are being restructured. Recent measures address the most problematic part of banks’ portfolios. Moving ahead, a further restru...

Management of Risks to Financial Stability from the Perspective of a Central Bank

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Gabriela Lățea

2016-11-01

Full Text Available This article investigates the main issues pertaining to a central bank’s concerns relative to financial stability, as seen from the perspective of risks, sources and key ways of action. At macroeconomic level, central banks need to identify and monitor the risk that market operators face payment default towards local entities (companies, households, government and/or foreign creditors. Moreover, central banks entrusted with supervisory and licensing tasks are also carefully examining the various risks threatening banks, be they credit risk, liquidity risk, market risk, or risks associated with exposure concentration and distribution. On financial markets, prices, profit margins, interest rates, net exposure to certain financial instruments must be monitored to be able to identify build - ups of risks, stress and significant drawbacks to its adequate functioning. Adding to these is the Contingent Claims Analysis (CCA1, which involves oversight and assessment of risks in various sectors as well as of the needs to counter them, by drawing on the real market data to identify the probability of default in one sector or another and the impact on other sectors in an integrated manner.

Financial Crisis, Capital Outflows, and Policy Responses: Examples from East Asia

Science.gov (United States)

Rajan, Ramkishen S.

2007-01-01

Financial crises seem to have become the norm rather than the exception since 1992. The author examines the impact of a crisis of confidence and resultant capital outflows from a small and open economy and the possible policy options in response to such outflows, using simple tools and definitions that will be familiar to any money and banking or…

Credit shocks in the financial deregulatory era: not the usual suspects

Czech Academy of Sciences Publication Activity Database

Benk, S.; Gillman, M.; Kejak, Michal

2005-01-01

Roč. 8, č. 3 (2005), s. 668-687 ISSN 1094-2025 R&D Projects: GA ČR GA402/05/2172 Institutional research plan: CEZ:AV0Z70850503 Keywords : business cycle * credit shocks * financial deregulation Subject RIV: AH - Economics Impact factor: 0.483, year: 2005 http://dx.doi.org/10.1016/j.red.2005.01.012

Financial Stress and Financial Counseling: Helping College Students

Science.gov (United States)

Britt, Sonya L.; Canale, Anthony; Fernatt, Fred; Stutz, Kristen; Tibbetts, Racquel

2015-01-01

This study had two distinct purposes. First, to determine the predictors of financial stress among college students who sought free peer-based financial counseling from a large Midwestern university (N = 675). Secondly, to determine the effectiveness of the particular financial counseling center from a subsample of those who sought help (N = 97).…

MEASURES AND INSTRUMENTS USED AS A RESPONSE TO CRISES IN EUROPEAN UNION - AN OVERVIEW

Directory of Open Access Journals (Sweden)

FIRTESCU BOGDAN

2011-07-01

Full Text Available During latest times, financial crises have been a common occurrence in emerging market (and transition countries with negative influence for the economies. Financial crises have had negative effects on real output, work force, poverty and political instability. Latest crises (2008 that struck US become international, its consequence being received in European countries too. This paper wants to discuss some intervention measures taken in the European Union Area and some importants funds used as tools for crises fighting. The European Economic Recovery Plan and EU funding mechanisms (The European Social Fund (ESF and The European Globalization Adjustment Fund (EGF are taken into discussion.

Framework for financial ratio analysis of audited federal financial reports

OpenAIRE

Brady, Richard T.

1999-01-01

Federal agencies have traditionally prepared financial reports to monitor and report the obligation and expenditure of federal funding. With the passage of the Chief Financial Officers Act of 1990, Congress called for the production of financial statements that fully disclose a federal entity's financial position and results of operations. The disclosure of this type of information, it was believed, would enable decision-makers to understand the financial implications of budgetary, policy and...

The financial position and funding of French non-financial corporations

OpenAIRE

G. Cette.; J.-P. Villetelle.

2015-01-01

This study, based on recent company statistics from national accounts and financial statements, shows a deterioration in the financial position of French non-financial corporations. This is affecting their performances and is prompting them to diversify their sources of funding in order to rationalise their financial structure.

APPLICATION OF FINANCIAL ETHICS IN ANNUAL FINANCIAL REPORTING OF BANKS

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Ayuba A. Aminu

2016-03-01

Full Text Available The importance of financial ethics and its application in financial reporting of banks cannot be ignored as it assists in building public confidence and fostering professionalism. However, the non-compliance and conformity with Nigerian Financial Regulatory Authorities prudential guidelines in the preparation of financial statements lead to incomplete or false information. The objective of the study is to examine the application of financial ethics in annual financial reporting of banks. The study employed primary and secondary data and stratified and purposive sampling techniques were used in which 20 questionnaires were administered to respondents. ANOVA and chi-square were in analysis and the findings revealed that there are significant unethical practices in the preparation of financial reports of banks in Nigeria. The study recommends that more emphasis and attention should be given to ethical standards in all banks and banks should give out clear reports of their financial activities to the regulatory authorities.

Financial Planners: Educating Widows in Personal Financial Planning

Science.gov (United States)

Korb, Brian R.

2010-01-01

Widows constitute a growing segment of the U.S. population; however, very little has been done to educate them on the basics of personal financial planning. The creation and implementation of financial planning education programs for widows can help them become more financially literate and free them from anxiety and fear. Interviews with eight…

Improving the Financial Resourcing Process for Civil/Military Operations

National Research Council Canada - National Science Library

Gadbois, Karen

2004-01-01

.... This was evident in the most recent stability operation in Afghanistan. Although financial resourcing is key to the planning process prior to operational commencement the intricacies of the rules and financial mechanisms are not sufficiently addressed...

Effect of Financial Stress and Positive Financial Behaviors on Cost-Related Nonadherence to Health Regimens Among Adults in a Community-Based Setting.

Science.gov (United States)

Patel, Minal R; Kruger, Daniel J; Cupal, Suzanne; Zimmerman, Marc A

2016-04-07

Little is known about the role of positive financial behaviors (behaviors that allow maintenance of financial stability with financial resources) in mitigating cost-related nonadherence (CRN) to health regimens. This study examined the relationships between positive financial behaviors, financial stress, and CRN. Data came from the 2011 Speak to Your Health! Community Survey (n = 1,234). Descriptive statistics were computed to examine financial stress and CRN, by chronic condition and health insurance status. We used multivariate logistic regression models to examine the relationship between positive financial behaviors and financial stress and their interaction on a composite score of CRN, controlling for health insurance status, educational level, age, marital status, number of chronic conditions, and employment status. Thirty percent of the sample engaged in CRN. Participants reported moderate financial stress (mean, 13.85; standard deviation [SD] = 6.97), and moderate positive financial behavior (mean, 8.84; SD = 3.24). Participants with employer-sponsored insurance, Medicaid, Medicare, the Genesee Health Plan, high blood pressure, asthma, and diabetes had the highest proportion of CRN. The relationship between financial stress and CRN was not significantly different between those who reported lower versus higher levels of positive financial behavior (P = .32). Greater financial stress was associated with a greater likelihood of CRN (odds ratio [OR] = 2.49; 95% confidence interval [CI], 2.08-2.99). Higher level of positive financial behavior was associated with a lower likelihood of CRN (OR = 0.80; 95% CI, 0.67-0.94). Financial literacy as a means of promoting positive financial behavior may help reduce CRN. An intervention strategy focused on improving financial literacy may be relevant for high-risk groups who report high levels of financial stress.

Toward Financial Stability:An Experimental Analysis Based on Financial Ethical Education%中国金融稳定的实现：金融伦理道德的实验分析

Institute of Scientific and Technical Information of China (English)

郭建伟; 孟奕岑

2015-01-01

The financial crisis breaking out in 2007,along with the financial scandals of US and UK in recent years,has revealed the significance of ethics in the financial industry.Improving the ethical standards of financial practitioners can not only ensure the sound development of the financial industry but also lay a foundation for the long-term financial stability.Through a 2-year experimental observation on financial ethics and moral education,it has been found that the undergraduate students in finance and other disciplines lack moral sense of the financial ethics.Meanwhile,the students'cognitive ability of financial ethics has been greatly improved through the experiment.This has suggested that the intentional education on the financial ethics may exert a positive impact on improving the ethical and moral standards of the financial practitioners in the future.However,there is not a good situation of ethical education in the contemporary economic or financial major in China.In order to realize the long-term stability and enhance the international competitiveness of China's financial industry,our long-term quality education reform should lay emphasis on improving the training program of undergraduate students in finance and other disciplines in China,as well as adding the business or financial ethics to their compulsory major list.%2007年爆发的金融危机，以及最近几年的美英金融大丑闻，均揭示出金融业伦理道德问题的严重性。提升金融从业者的伦理道德水准，是确保金融业正确发展与长久金融稳定的根基。通过连续2年的金融伦理道德教育的实验观察发现，目前我国金融学等学科本科生的金融伦理道德常识非常匮乏。同时，通过实验，学生金融伦理道德的认知能力显著提高。由此表明，有意的金融伦理道德�

Financial Literacy and Financial Education: Review and Policy Implications

OpenAIRE

Annamaria Lusardi

2006-01-01

In recent years, as workers have gained an unprecedented degree of control over their pensions and savings, the importance of financial literacy and financial education has increased considerably. Large changes in the structure of financial markets, labor markets, and demographics in developed countries have led to this change. Consumers have a bewildering array of complex financial products – from reverse mortgages to annuities – to choose from, making saving decisions increasingly complex. ...

The effects of the global financial crisis on the Australian building construction supply chain

Directory of Open Access Journals (Sweden)

Ram Karthikeyan Thangaraj

2012-09-01

Full Text Available This study involves a financial analysis of 43 publicly listed and large private companies in the building and construction supply chain from 2005 to 2010; straddling the period of the global financial crisis (GFC; and examines the impact of the GFC on the performance of these companies. The construction supply chain was divided into four sectors – material suppliers, construction companies, property developers and real estate investment trusts (REITs. The findings indicate that the impact was minimal for both material suppliers and construction companies, but especially severe for the more leveraged property developers and REITs. Building material suppliers and construction companies have benefitted substantially from the building economic stimulus package provided by the Australian government to mitigate the effects of the GFC. Decreases in the valuation of assets have, to a large extent, reduced the profitability of property developers and REITs during the GFC but these companies have recovered quickly from these adverse conditions to return to a sound financial position by the end of the 2010 financial year. The results will inform investors, managers and construction professionals in devising strategies for prudent financial management and for weathering future financial crises.