Financial System Architecture and the Co-Evolution of Banks and Capital Markets

2009 ◽  
Author(s):  
Fenghua Song ◽  
Anjan V. Thakor
Keyword(s):  
Capital Markets ◽  
System Architecture ◽  
Financial System

Financial markets as commensurating machines

2019 ◽  
Vol 58 (4) ◽  
pp. 539-565
Author(s):  
Barbara Kuchler
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Capital Market ◽  
Capital Flows ◽  
Financial System ◽  
Financial Assets ◽  
Financial Instruments ◽  
Black Scholes ◽  
Derivatives Markets

Ever since the crisis of 2008, the dynamism and self-referentiality of financial markets have puzzled observers. This article argues that this dynamism is the product of a long process of commensuration, by which ever more heterogeneous financial assets and financial instruments have come to be compared with, substituted for, and valuated relatively to one another, and have thereby been condensed into a highly interconnected financial system. This trajectory can be found both in the long-term historical emergence of financial markets from ancient origins and in the more recent transformations of the financial system since the 1970s, including (i) the rise of derivatives markets, and (ii) the rise of capital markets as against bank-intermediated capital flows. The rise of derivatives markets was triggered by the commensuration of basic securities (such as stock, bond) and derivatives (such as options, futures), established by the Black-Scholes-Merton theory of option pricing. The rise of capital markets was rooted in the commensuration – and hence, competition and substitution – of bank products (such as loans, deposits) and non-bank products (capital market securities).

scholarly journals Financial System Architecture

1997 ◽  
Vol 10 (3) ◽  
pp. 693-733 ◽  
Author(s):  
Arnoud W. A. Boot ◽  
Anjan V. Thakor
Keyword(s):  
System Architecture ◽  
Financial System

scholarly journals Ethics in the Operation of Banks in the Perspective of the Financial Crisis of 2007–2009

2020 ◽  
Vol 2 ◽  
pp. 55-67
Author(s):  
Eliza Komierzyńska-Orlińska
Keyword(s):  
Financial Crisis ◽  
Market Economy ◽  
Capital Markets ◽  
Financial System ◽  
Public Trust ◽  
Economic Life ◽  
Special Role ◽  
Banking Activity ◽  
Global Financial System ◽  
Partial Paralysis

Ethics in bank operations is and should be relevant. Because of their special status – institutions of public trust and the special role they play in the market economy – creating the bloodstream of economic life while being its participants as entrepreneurs – all their actions should have ethical foundations. They staggered tremendously during the financial crisis of 2007–2009 (called the crisis of trust) when as a result of careless actions of banks a problem of so-called toxic assets appeared which have shaken the foundations of banking activity. This resulted in the collapse of the capital markets, partial paralysis of the global financial system and a massive recession. The greed and recklessness of financiers began to be identified with the institution of the bank. Th aim of this study is to draw attention to the fact that banks – despite the turmoil (or rather especially because of) the crisis of 2007–2009 – as institutions of public trust should be guided by the values, standards and principles of ethics in every aspect of its business despite the fact that they are entrepreneurs focused on maximizing profit.

scholarly journals Albania among Bank Based System’s Countries

2013 ◽  
Vol 3 (2) ◽  
pp. 121
Author(s):  
MSc. Rovena Troplini
Keyword(s):  
Transition Economies ◽  
Financial Market ◽  
Capital Markets ◽  
Banking System ◽  
Financial System ◽  
Pension Funds ◽  
Asset Markets ◽  
Investment Funds ◽  
Dynamic Development ◽  
New Phase

The Albanian financial system has entered a new phase of its development. Financial system in Albania is bank oriented, as financial market is not active. Because of the important and deep changes that have altered the image of the banking system, the conditions for more dynamic development of non-banking intermediaries and capital markets have been created. The analysis is based on the standard indicators of size and activity of banking intermediaries. The results of the analysis show that the size and activity of Albanian banking system is growing faster but limiting the crediting process only on banks. However, the achieved level of development of banking intermediaries is still below of other advanced transition economies. Albanian financial system needs to develop quickly the activities of pension funds, investment funds and bond/asset markets in order to create great opportunities to the Albanian economy.

Dependency in the Modern Global Economy: Australia and the Changing Face of Asian Finance

1994 ◽  
Vol 26 (3) ◽  
pp. 415-434 ◽  
Author(s):  
M T Daly ◽  
R J Stimson
Keyword(s):  
Capital Markets ◽  
Global Economy ◽  
Strong Dependence ◽  
External Debt ◽  
Financial System ◽  
Structural Features ◽  
Global System ◽  
Domestic Capital ◽  
Spatial And Temporal Changes ◽  
Major Supplier

Theories which attempt to explain the structural features of spatial and temporal changes in the global system have generally underestimated the recent impacts of the international financial system. Japan and Australia are investigated because they illustrate opposite ends of the spectrum of experiences of these impacts. Beyond 1985 Japan became the world's major creditor nation, but in 1992 was facing a severe crisis in its domestic capital markets. Australia embraced the policy route of deregulating and opening its capital markets, only to be left with a massive external debt and a strong dependence of external capital. Japan became Australia's major supplier of capital, but the sectors and the locations into which this capital was directed created for Australia an extremely fragile dependence.

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