scholarly journals Resolving of failing financial institutions: from bail-out to bail-in

2021 ◽  
Vol 2021 (3) ◽  
Author(s):  
Lukáš Fiala
Keyword(s):  
Financial Institutions ◽  
Bail Out

scholarly journals Дугови - извор финансијске и економске нестабилности у свијету // Debts – source of financial and economic instability in the world

2012 ◽  
Vol 10 (16) ◽  
pp. 199
Author(s):  
Дејан Микеревић
Keyword(s):  
Financial Institutions ◽  
Debt Crisis ◽  
World Market ◽  
General Motors ◽  
Budget Deficits ◽  
Currency Markets ◽  
Market Economic ◽  
Successful Recovery ◽  
The World ◽  
Bail Out

Резиме: Неизвјесност на међународним финансијским и валутним тржиштима је постала свакодневица, док су кризних ситуација поштеђене једино земље које су већ дуги низ година изоловане од остатка свијета. Ове земље су одбиле да се интегришу у свјетски тржишни економски систем с међународним правилима понашања, као што су на примјер Куба, Сјеверна Кореја, Венецуела и остали. Настанку кризе средином 2008. је претходио период снажног раста инфлације. Значајно је истаћи да су кризом најинтензивније биле погођене најснажније свјетске државе, као што су САД и западне европске земље, и да су највеће губитке претрпјеле њихове велике банке, финансијске институције и моћне корпорације. Владе ових земаља формирале су пакете помоћи за спас својих привреда (енг. bail out) који су првенствено били усмјерени на директну новчану помоћ банкама и финансијским институцијама, а затим и великим корпорацијама од виталних државних интереса, као што су General Motors, Chevrolet, Opel и слични. Међутим, дужничка криза приватних компанија се прелила у дужничку кризу влада земаља, које су „упумпале“ новац пореских обвезника као помоћ приликом тзв. „bail out“. Енорман раст буџетских дефицита и јавних дугова је уздрмао повјерење инвеститора у владине хартије од вриједности, нормално финансирање свакодневних државних послова и доспјелих обавеза у земљама као што су Италија, Шпанија и остали. дакле, државним интервенцијама спашена су потраживања бројних приватних и институционалних инвеститора, али су због тога саме државе доспјеле у проблеме енормног повећања буџетских дефицита и јавних дугова. Стога, солидарност приватног капитала са финансијским недаћама држава и њихових грађана је од кључног значаја за успјешан опоравак из ове велике кризе и стварање предуслова за реалан економски напредак у наредном периоду.Summary: Uncertainty in international financial and currency markets has become common, while the only countries spared from the crisis are those that have been isolated from the rest of the world for many years. These countries have refused to integrate into the world market economic system with international rules of behavior, for example China, North Korea, Venezuela and others. The crisis in mid 2008 was preceded by a period of strong inflation growth. It is significant to point out that the most intense crisis has affected  the world`s most powerful states, such as USA and Western European countries and their large banks, financial institutions and powerful corporations. The governments of these countries have formed the assistance packages to rescue its economies  (bail out), that have primarily been focused on direct financial assistance to banks and financial institutions and large corporations , such as General Motors, Chevrolet, Opel etc. However , debt crisis of private companies spilled into government debt crisis  in countries that have pumped taxpayers` money during so called «bail out». The enormous growth of budget deficits and public debt has shaken the confidence of investors in governement securities, normal financing of daily government operations and outstanding liabilities in countries such as Italy, Spain and others. Government intervention saved the claims of numerous private and institutional investors, but due to this states themselves faced the problems of enormous increase of budget deficits and public debts.  Therefore, the solidarity of private capital to the financial hardships of state and its citizens is essential for successful recovery from this major crisis and for creating preconditions for real economic progress in the future.

Macroprudential Regulation of Banks and Financial Institutions

2019 ◽  
pp. 527-548
Author(s):  
Gerald P. Dwyer
Keyword(s):  
Financial Institutions ◽  
Financial Crises ◽  
Deposit Insurance ◽  
Living Wills ◽  
Major Topic ◽  
Equilibrium Behavior ◽  
Macroprudential Regulation ◽  
Financial Firms ◽  
Real Gdp ◽  
Bail Out

Regulation of financial institutions to avoid the worst effects of financial crises has become a major topic of research and a focus of regulators’ efforts. Policies designed to reduce crises’ effects on real GDP and employment are called macroprudential. Moral hazard has been introduced by deposit insurance and bailouts of banks and large financial institutions. Too little is known to premise macroprudential regulation on externalities. That said, higher capital at banks and other institutions counteracts one effect of deposit insurance and would make the financial system more resilient. Living wills are likely not to be time-consistent. Regulators will not have an incentive to use them in a financial crisis. Instead, they will bail out firms to avoid adverse effects on the economy. Institutions determining regulators’ choices in a crisis need to be designed to make it equilibrium behavior for regulators to let financial firms fail.

Credibility and Reform of Financial Institution Regulation

2001 ◽  
Vol 04 (03) ◽  
pp. 359-364 ◽  
Author(s):  
Gary Stern
Keyword(s):  
Financial Institutions ◽  
Government Regulation ◽  
Financial Institution ◽  
Time Consistency ◽  
Policy Makers ◽  
Market Participants ◽  
Consistency Problem ◽  
Bail Out ◽  
Reserve System ◽  
Credible Policies

There is heightened interest in reforming government regulation of financial institutions to make better use of market discipline and data. We strongly support such reforms, which are being implemented to some degree by the Federal Reserve System. However, market oriented reforms will not work unless government policies are credible in putting market participants, especially those at the largest financial institutions, at risk of loss. Establishing credible policies requires that governments address the time-consistency problem head-on. As a result, we recommend policies that establish credibility by directly reducing the incentive that policy-makers have to protect the creditors of financial institutions. Other policies, which do not address the fundamental reasons why policy-makers bail out creditors, are therefore likely to be circumvented when large banks get into trouble.

European taxation during the crisis: does politics matter?

2012 ◽  
Vol 32 (3) ◽  
pp. 207-230 ◽  
Author(s):  
Hanna Lierse
Keyword(s):  
Financial Institutions ◽  
Economic Recession ◽  
Party Politics ◽  
Crisis Response ◽  
Right Wing ◽  
Left Wing ◽  
Tax Reforms ◽  
Social Democratic ◽  
Public Money ◽  
Bail Out

AbstractWith the outbreak of the financial crisis in 2008, European governments extensively intervened to avert a severe economic recession. Taxation is a crucial instrument to achieve such economic objectives, but it also represents a redistributive tool in democratic societies. Generally, left-wing parties are more supportive of progressive taxes and redistribution than right-wing governments. As a crisis response, one could assume that European governments, especially social-democratic ones, reinforced a redistributive stance to compensate for the substantial amounts of public money used to bail out financial institutions. Based on the tax reforms introduced between 2008 and 2010, the paper explores the tax strategies adopted by European governments. The findings do not reveal a direct effect of party politics on taxation but rather show that pressures from the capital markets significantly restrained governments’ policy capacities to act.

scholarly journals To bail out or not to bail out systemically relevant financial institutions: The incentives of policy makers

2012 ◽  
Vol 1 (4) ◽  
pp. 88-93
Author(s):  
Lucas Marc Fuhrer
Keyword(s):  
Financial Crisis ◽  
Financial Institutions ◽  
Risk Averse ◽  
Clear Definition ◽  
Policy Makers ◽  
Systemic Risks ◽  
Recent Financial Crisis ◽  
Definition Of ◽  
Bail Out

The recent financial crisis has shown that many financial institutions may be systemically relevant. Their bankruptcy would cause significant costs for the overall economy. However, a clear definition of systemic risks still does not exist. Thus, the decision, whether an institution is, or is not systemically relevant is in the end made by policy makers. This paper takes a closer look at the incentives available to policy makers and their influence on the bailout decision. In the model presented here it is possible to show, that too many financial institutions get bailed out, when assuming that policy makers tend to be more risk-averse than socially optimal. The costs due to this misallocation of resources can be significant.

From Bail-out to Bail-in: Mandatory Debt Restructuring of Systemic Financial Institutions

2012 ◽  
Vol 12 (03) ◽  
pp. 1 ◽  
Author(s):  
Virginia Rutledge ◽  
Michael Moore ◽  
Marc Dobler ◽  
Wouter Bossu ◽  
Nadège Jassaud ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Debt Restructuring ◽  
Bail Out

Grafts - bail out oder geplant?

2013 ◽  
Vol 185 (S 01) ◽  
Author(s):  
S Diehl ◽  
M Sadick ◽  
T Riester ◽  
K Huck ◽  
SO Schönberg
Keyword(s):  
Bail Out
Sign in / Sign up

Export Citation Format

Share Document