The Role of Crises in Shaping Financial Systems

The Role of Crises in Shaping Financial Systems
Author: Małgorzata Iwanicz-Drozdowska
Publisher: Taylor & Francis
Total Pages: 185
Release: 2022-10-18
Genre: Business & Economics
ISBN: 1000738868

The Role of Crises in Shaping Financial Systems: From the Global Financial Crisis to COVID-19 underscores the role of crises as turning points for the financial sector and its interactions with the real economy. It sheds new light on the financial industry through the lens of three recent crises – the global financial crisis, the sovereign debt crisis, and the COVID-19 pandemic. The book provides in-depth insight into the financial systems in European Economic Area countries, accentuating the role of crises in shaping the condition and development of the financial arena. The authors pay special attention to the differences between “old” and “new” Europe, i.e. countries that joined the EU in 2004 or later. It explores the implications of recent turbulences for financial institutions, financial markets, and public finance, and their relationship with the economy. The book examines low or negative interest rates, non-standard monetary policy, fiscal stimulus, dense safety nets, regulatory inflation, weak profitability of the financial sector, and the sovereign-bank nexus. Post-crisis developments are assessed, comprehensively and empirically, from both macro- and microeconomic perspectives to help readers understand the nature of policy measures and their socio-economic implications. The authors outline their predictions for the future of financial systems, focusing on the structural changes and legacy of the COVID-19 crisis and global financial interlinkages. The book adopts both theoretical and practical approaches to explore the key issues and, as such, will appeal to academics and students of financial economics and international finance, as well as policymakers and financial regulators.

Banking Resilience And Global Financial Stability

Banking Resilience And Global Financial Stability
Author: Sabri Boubaker
Publisher: World Scientific
Total Pages: 456
Release: 2024-01-23
Genre: Business & Economics
ISBN: 1800614330

In contrast to non-financial firms, banks have undergone significant turbulence in the past decade, enduring severe financial crises and unprecedented regulatory reforms. New regulations, including heightened capital and liquidity requirements, measures to address regulatory migration, resolution authority, stress testing, and capital planning, have spurred the development of new tools to manage institutional failure. The primary goal has been to reduce the likelihood of poor performance and improve stock market valuations to restore public confidence in the industry. The banking industry plays a vital role in global economic and financial stability and is subject to intense regulatory and market scrutiny. Financial instability can be very costly for banks due to its spillover effects on other parts of the economy. Therefore, a sound, stable, and healthy financial system is essential for efficient resource allocation and risk distribution across the economy.This is the first book that comprehensively addresses a range of contemporary issues in the global banking industry, providing a thorough understanding of the challenges and opportunities faced by the sector. The book examines how banking business models, effective policies, and regulations can address these issues, covering corporate governance, asset-liability management, risk management, financial performance, and regulatory frameworks. The potential benefits of alternative banking models, including Islamic banking, and their contribution to global financial stability and resilience are also explored.Contributions from international scholars using both quantitative and qualitative methods provide new insights, recent findings, and perspectives on future bank stability and resilience in a global context. The book also presents updated evidence and debates on the impact of recent regulations and governance structures on the industry, which has undergone significant changes in response to financial turmoil and new laws and regulations aimed at enhancing bank resiliency, protecting against systematic risks, and promoting fair and ethical banking practices.

Sweden

Sweden
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Total Pages: 61
Release: 2016-11-17
Genre: Business & Economics
ISBN: 1475554613

This paper discusses the findings of the Financial System Stability Assessment for Sweden. The Swedish financial system is large and highly interconnected, putting a premium on the accompanying policy framework. Relative to the size of the domestic economy, the financial system is among Europe’s largest. It features complex domestic and international linkages, reflecting Sweden’s role as a regional financial hub. However, the macrofinancial risks have grown since 2011, for example the rising share of highly indebted households. Stress tests also suggest that banks and nonbanks are largely resilient to solvency shocks, but concerns persist about the ability of bank models to capture unexpected losses.

Creating a Safer Financial System

Creating a Safer Financial System
Author: José Vinãls
Publisher: International Monetary Fund
Total Pages: 27
Release: 2013-05-14
Genre: Business & Economics
ISBN: 1484340949

The U.S., the U.K., and more recently, the E.U., have proposed policy measures directly targeting complexity and business structures of banks. Unlike other, price-based reforms (e.g., Basel 3 and G-SIFI surcharges), these proposals have been developed unilaterally with material differences in scope, design and implementation schedules. This may exacerbate cross-border regulatory arbitrage and put a further burden on consolidated supervision and cross-border resolution. This paper provides an analysis of the potential implications of implementing different structural policy measures. It proposes a pragmatic and coordinated approach to development of these policies to reduce risk of regulatory arbitrage and minimize unintended consequences. In doing so, it also aims to identify a set of common policy measures that countries could adopt to re-scope bank business models and corporate structures.

Estimating the Costs of Financial Regulation

Estimating the Costs of Financial Regulation
Author: Mr.Andre Santos
Publisher: International Monetary Fund
Total Pages: 43
Release: 2012-09-11
Genre: Business & Economics
ISBN: 147551008X

Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.

Macroprudential Policy - An Organizing Framework - Background Paper

Macroprudential Policy - An Organizing Framework - Background Paper
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Total Pages: 33
Release: 2011-03-14
Genre: Business & Economics
ISBN: 1498339174

MCM conducted a survey in December 2010 to take stock of international experiences with financial stability and the evolving macroprudential policy framework. The survey was designed to seek information in three broad areas: the institutional setup for macroprudential policy, the analytical approach to systemic risk monitoring, and the macroprudential policy toolkit. The survey was sent to 63 countries and the European Central Bank (ECB), including all countries in the G-20 and those subject to mandatory Financial Sector Assessment Programs (FSAPs). The target list is designed to cover a broad range of jurisdictions in all regions, but more weight is given to economies that are systemically important (see Annex for details). The response rate is 80 percent. This note provides a summary of the survey’s main findings.

The Federal Reserve System Purposes and Functions

The Federal Reserve System Purposes and Functions
Author: Board of Governors of the Federal Reserve System
Publisher:
Total Pages: 0
Release: 2002
Genre: Banks and Banking
ISBN: 9780894991967

Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Global Financial Stability Report, April 2013

Global Financial Stability Report, April 2013
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Total Pages: 160
Release: 2013-04-17
Genre: Business & Economics
ISBN: 1475589581

The Global Financial Stability Report examines current risks facing the global financial system and policy actions that may mitigate these. It analyzes the key challenges facing financial and nonfinancial firms as they continue to repair their balance sheets. Chapter 2 takes a closer look at whether sovereign credit default swaps markets are good indicators of sovereign credit risk. Chapter 3 examines unconventional monetary policy in some depth, including the policies pursued by the Federal Reserve, the Bank of England, the Bank of Japan, the European Central Bank, and the U.S. Federal Reserve.

People’s Republic of China

People’s Republic of China
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 106
Release: 2012-04-05
Genre: Business & Economics
ISBN: 1475502966

A detailed assessment report on the observance of China’s compliance of Basel Core Principles for effective banking supervision is presented. Regulation and supervision of China’s banking system has made impressive progress in the past few years, led by an activist, forward-looking regulator, the China Banking Regulatory Commission, with a clear safety and soundness mandate that has been supported by banks and by the State. The macroeconomic environment is characterized by rapid growth, with concerns about overheating and asset price overvaluation.