scholarly journals How to Keep a Promise: Laymen Answers to the Financial Crisis

2017 ◽  
Vol 26 (1) ◽  
pp. 49 ◽  
Author(s):  
Kinga Pétervári
Keyword(s):  
Financial Crisis ◽  
Preventive Measures ◽  
Global Financial Crisis ◽  
Per Se ◽  
Contractual Obligations ◽  
The Global Financial Crisis

This article is a case study, providing a possible interpretation of the current Hungarian financial-legal culture.How to apply those terms and conditions in long-term loan agreements in financial crisis, which are favourable or seemingly irrelevant in good times but turn out to be disadvantageous, sometimes even disastrous in bad times. How to calculate and allocate risks, what is acceptable and what is foreseeable to laymen? The focus here is on the laymen attitudes towards long-term contractual obligations and performances in the global financial crisis: whether debtors’ contractual obligations must be fulfilled, what should be construed as an excuse for non-performance, whether there should be measures designed to protect the debtors more, if yes, at whose expense – the creditors (rather preventive measures) or the taxpayers (rather restitutive measures) –, if no, how to allocate ideally the risks and liabilities, is profit-making an evil per se, that needs to be managed?

scholarly journals Financial cycle − A critical analysis of the methodology for its identification

2021 ◽  
Vol 10 (3) ◽  
pp. 99-116
Author(s):  
Łukasz Kurowski
Keyword(s):  
Economic Policy ◽  
Critical Analysis ◽  
Global Financial Crisis ◽  
Critical Perspective ◽  
Financial Cycle ◽  
Economic Justification ◽  
The Business Cycle ◽  
The Global Financial Crisis

Abstract While the legitimacy of the concept of the financial cycle (as distinct from the business cycle) in research and economic policy after the experience of the global financial crisis raises no concerns, the methodology for its application has become a subject of discussion. The purpose of this article is to indicate which research methods dominate in identifying a financial cycle and which methodological traps accompany them. The low level of critical perspective on the methods used to identify cycles often results in conclusions that have no economic justification and may result in erroneous decisions in economic policy and central bank practice. The case study carried out in the article confirms that the key elements in identifying a financial cycle are part of a long-term series covering at least two lengths of the financial cycle. In addition, because the results may be sensitive to the type of filter used, it is important not to rely on a single variable but rather to build indexes that take into account a number of them (including those obtained using filtration methods).

scholarly journals ADJUSTMENT SPEED OF DEBT MATURITY: EVIDENCE FROM FINANCIAL CRISES IN EAST ASIA

2021 ◽  
Vol 24 (1) ◽  
pp. 71-92
Author(s):  
Hasan Tekin ◽  
Ali Yavuz Polat
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
East Asian ◽  
Debt Maturity ◽  
Least Square ◽  
Exogenous Shocks ◽  
Adjustment Speed ◽  
The Global Financial Crisis ◽  
Debt Holders

We investigate the change in adjustment speed of debt maturity for East Asian firms between 1990 and 2017 by including two exogenous shocks: the Asian Financial Crisis 1997-1998 (AFC) and the Global Financial Crisis 2007-2009 (GFC). We employ the least square dummy variable correction and find that East Asian firms have a slower adjustment of long-term debt over time. Besides, the decrease in adjustment speed of long-term debt after the GFC is more compared to the decrease after the AFC. Further analysis shows the optimal debt maturity differs across countries and industries. Another important implication of our results is that firms in high governance countries are more likely to close the gap between the actual and target debt maturity in time. Overall, debt holders and investors should consider financial uncertainties.

Advancing SME Sustainability

2021 ◽  
pp. 159-178
Author(s):  
Meng Kui Hu ◽  
Daisy Mui Hung Kee
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Policy Changes ◽  
Business Environments ◽  
Business Operations ◽  
New Business ◽  
Spanish Flu ◽  
The Global Financial Crisis ◽  
The Impact

The world has been struck by multiple crises that crippled the socio-economy of nations in the past. The impact of these crises was so significant that they initiated numerous policy changes worldwide. The radical crises in this context refer to the Spanish flu, the Asian financial crisis, the global financial crisis, and the current COVID-19 pandemic. Due to their small capital structure with limited resources and fragile nature, SMEs were severely impacted by these crises. Many SMEs were forced to close down their business operations. Somehow, the remaining SMEs managed to persist and survive through the crises. Moving forward, SMEs can better prepare for future crises by understanding and learning from the predicaments of these past crises. Consequently, SMEs must also be adaptive to new business environments and responding promptly to crises by realigning their strategies to achieve business sustainability in the long term.

scholarly journals Global Financial Crisis of Islamic and Conventional Banking in Middle East – A Case Study in Turkey

2017 ◽  
Vol 9 (8) ◽  
pp. 239
Author(s):  
Ayman Abdal-Majeed Ahmad Al-Smadi ◽  
Mahmoud Khalid Almsafir ◽  
Muzamri Bin Mukthar
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Secondary Data ◽  
Islamic Banking ◽  
The Social ◽  
The Global Financial Crisis ◽  
The Impact

The financial tools all over the world become extremely decisive in these days. The main goal of this paper is to measure then to discuss the impact of performance of conventional and Islamic banking in Turkey during the financial crisis. some variables such as profitability, liquidity, operational efficiency and business growth are used as a measuring factor to determine the performance for both financial models. The period of study is taken during the financial crisis in 1997 and during the global financial crisis in 2007. The comparison in this study is made between the performances of Islamic banking  and conventional banking in Turkey.Some secondary data had examines in this study which was drown from the annual report from one of Turkey bank since 2002 until 2013. SPSS (Statistical Package for the Social Sciences) “18.0” has been used to compare between Islamic finance model and other model. The findings of this paper shows that Islamic financial system is performing superior than conventional financial system for the period of this study. Hence, it can be concluded that the system of Islamic banking is able to sustain and compete with the conventional banking system especially during any financial crisis.

scholarly journals Monetary policy responses to the global financial crisis: A case study of Egypt

2011 ◽  
Vol 7 (3) ◽  
pp. 65-78
Author(s):  
Monal Abdel-Baki
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Reserve Requirements ◽  
Long Run ◽  
Dynamic Stochastic ◽  
The Global Financial Crisis ◽  
The Arab Spring

Among the triggers of the Arab Spring are the declining living standards of the middle and lower income groups. Undoubtedly, the global financial crisis (GFC) is to be partially blamed for weakening the economies of these nations. But was monetary policy ineffective in combating inflation and reducing the meltdown? This paper employs a dynamic stochastic general equilibrium model to assess the effectiveness of the monetary policy in the wake of the GFC. Egypt is selected as a case study due to its overdependence on imported food, the prices of which are relentlessly soaring. The results of the study reveal that the ideal operating targets for the Central Bank of Egypt are the overnight rate and legal reserve requirements. Interest rates are more suitable for long-run impact on the ultimate goals of growth, price stability and job creation. The study culminates in designing a framework to enhance central bankers’ political independence and transparency, which is imperative for nations with high levels of corruption. The study is not only informative to the new Egyptian policymakers, but also to other developing and emerging economies that suffer from symptoms of chronic inflation and looming socio-political turmoil.

Indirect Governance in Global Financial Regulation

2020 ◽  
pp. 203-222
Author(s):  
Thomas Rixen ◽  
Lora Anne Viola
Keyword(s):  
Financial Crisis ◽  
Financial Market ◽  
Financial Stability ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Policy Reforms ◽  
Regulatory Standards ◽  
The Global Financial Crisis ◽  
And Control

The global financial crisis led G20 states to conclude that stronger regulatory standards and improved compliance were needed to ensure global financial stability. To this end, the G20, as collective governor, granted an institutional intermediary, the Financial Stability Board (FSB), authority to develop and supervise financial market regulations. However, the G20 designed the FSB in ways that stymied its regulatory competence. Why did the G20 design the FSB in ways that were inadequate to meeting its own governance goal? Competence–control theory provides a compelling answer. The G20 faces a tradeoff between a competent intermediary and control over the intermediary; this tradeoff is exacerbated by the G20’s collective nature. While the G20 has a collective long-term interest in an intermediary with the expertise and capacity to promote stability-enhancing regulations, intense short-term distributive conflicts among member states yield strong incentives to control the intermediary. These internal distributive conflicts are more easily overcome during systemic economic crisis, when a competent intermediary is urgently needed. Once the crisis has passed, however, the governor reasserts control, again compromising the intermediary’s competence. The chapter illustrates this argument with an account of reforming the Financial Stability Forum into the FSB, and three case studies of policy reforms after the financial crisis.

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