scholarly journals The Incoming Revolution in the World Banking and Financial System

2020 ◽  
Vol 2(15)/2020 (2(15)/2020) ◽  
pp. 169-192
Author(s):  
Przemysław Furgacz
Keyword(s):  
Economic Crisis ◽  
Financial System ◽  
Central Banks ◽  
Monetary Policies ◽  
The Past ◽  
Global Banking ◽  
The World ◽  
Boom And Bust ◽  
Boom And Bust Cycles ◽  
Global Financial System

Manifold and ongoing developments seem to hint that humanity is just ahead of historic shifts in global banking as well as the financial system. The landmark changes at this moment are unavoidable. The ultra-loose monetary policies practiced by the leading central banks in recent years for a record-breaking period have not resulted in a permanent enhancement of the global economic situation but barely extended the inevitable agony of the current global financial system for additional several years. The COVID-19 pandemic and resultant global economic crisis only made things worse. These simple facts beg the following questions: what future global financial system would probably look like? What currency is going to substitute the role hitherto fulfilled by the crumbling U.S. dollar? How painful the upcoming giant changes will be for societies? What the incoming revolution in geo-economics will mean for geopolitics? Unfortunately, financial boom and bust cycles are not the thing of the past but rather seem to be inextricably linked to the way the modern financial system works. This decisively needs to be reformed. The harbingers of epochal changes are on the horizon. The author will describe them in the paper.

Afterword

2020 ◽  
pp. 610-628
Author(s):  
Ranald C. Michie
Keyword(s):  
Global Financial Crisis ◽  
Supply And Demand ◽  
Banking System ◽  
Financial System ◽  
Central Banks ◽  
Global Banking ◽  
The Us ◽  
Direct Government ◽  
The Global Financial Crisis ◽  
Global Financial System

The shock to the global financial system in 2020, caused by the coronavirus, provides is a test for the measures taken since the Global Financial Crisis of 2008. The coronavirus has caused a shock to the global economic system, disrupting both supply and demand, and this demands more direct government intervention than central banks are able to provide. Whereas the 2008 crisis was one centred on the global banking system that of 2020 was an event akin to a war, natural disaster, or a political revolution. In turn that had implications for the global financial system as it contained the potential to destabilize banks by threatening the solvency of those to whom they had made loans and extended credit. To forestall such an event central banks are called upon to act as lenders of last resort, particularly the Federal Reserve, as it was the only one capable of supplying the US$s on which all banks relied when making and receiving payments, and borrowing and lending, among themselves. From the outset that response appears to have learned lessons from the mistakes of the 2008 crisis, in terms of speed, scale, and co-ordination, while the global banking system is far more resilient.

THE WORLD ECONOMY

2008 ◽  
Vol 206 ◽  
pp. 74-82
Author(s):  
Dawn Holland ◽  
Ray Barrell ◽  
Tatiana Fic ◽  
Sylvia Gottschalk ◽  
Ian Hurst ◽  
...  
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
World Economy ◽  
Financial System ◽  
Bank Lending ◽  
The Past ◽  
The Us ◽  
The World ◽  
Global Financial System ◽  
Financial Market Crisis

Over the past few weeks, the global financial system has appeared on the brink of collapse, as mounting bank losses and a lack of banking liquidity have resulted in a wave of collapsing financial institutions across Europe and the US. While the immediate threat to the financial system appears to have been averted, the continuing deleveraging process, declining asset prices and heightened uncertainty regarding the viability of financial institutions have sharply reduced the willingness and ability of banks to lend to each other and to other borrowers, and at the same time reduced the willingness of borrowers to increase their levels of debt. As the events of recent weeks have unfolded, it has become increasingly clear that the fallout from the financial market crisis will continue to restrict bank lending severely for at least the next several months, pushing the world's major economies into recession. As a consequence, growth in the OECD economies next year is projected to be the weakest since 1982, with output forecast to rise by just 0.4 per cent.

scholarly journals Analysis of the Sukuk Market Development in the Countries of The World

2021 ◽  
Vol 04 (12) ◽  
Author(s):  
Dr. Sirojiddin Z. Abrorov ◽  
Keyword(s):  
Economic Crisis ◽  
21St Century ◽  
Financial System ◽  
Market Development ◽  
Growth Trend ◽  
New Instrument ◽  
The World ◽  
Global Financial System

Islamic securities sukuk, introduced as a new instrument of the global financial system in the 21st century, have grown rapidly in recent years. Interest in it is growing, as it showed a growth trend even during the global financial and economic crisis and the COVID-19 pandemic. The article analyzes the development of sukuk in 2001-2020. Statistics from Malaysia and Turkey are analysed separately.

Financialization

2018 ◽  
pp. 276-290
Author(s):  
Ravi Roy ◽  
Thomas D. Willett
Keyword(s):  
Financial Markets ◽  
Financial Services ◽  
Capital Mobility ◽  
Global Financial Crisis ◽  
Economic Globalization ◽  
The Past ◽  
The World ◽  
The Global Financial Crisis ◽  
National Economies ◽  
Global Financial System

The size and scope of financial sectors throughout the world have grown exponentially in tandem with the rise of globalization and increased capital mobility. The terms “economic globalization” and “financialization” are often discussed as inextricably related phenomena. Although the rapid increase in the number and variety of financial services and products during the past four decades has helped spur economic growth and create wealth on an unprecedented scale, the devastating fallout from the global financial crisis of 2008–2009, and the economic turbulence that followed, demonstrates how poorly managed financial sectors can simultaneously cause enormous pain. This chapter argues that if the opportunities created by economic globalization and financialization are to be maximized, while at the same tempering volatile financial markets, then the global financial system (and the national economies connected with it) must be fundamentally restructured. A number of ways that should be taken under consideration are discussed.

scholarly journals ARE THE EFFECTS OF UNCONVENTIONAL MONETARY POLICY ON FINANCIAL MARKETS CAUSING BUBBLES?

2019 ◽  
Vol 1 (1) ◽  
pp. 1-1 ◽  
Author(s):  
Daniel Lacalle
Keyword(s):  
Financial Markets ◽  
Central Banks ◽  
Unintended Consequences ◽  
Quantitative Easing ◽  
Unconventional Monetary Policy ◽  
Monetary Policies ◽  
Policy Makers ◽  
The Past ◽  
Long Run ◽  
Asset Classes

Cheap money can become very expensive in the long run. Unconventional monetary policies have been the main tools of central banks to tackle the economic crisis. In this paper we aim to understand whether these policies have created distortions in the fi nancial markets and if we can be concerned about the creation of “bubbles”, considering whether quantitative easing has impacted fi nancial asset classes’ valuations beyond reasonable fundamentals. I conclude that there is empirical evidence of inordinate expansion of multiples and that central bank policy makers should include “fi nancial market infl ation” as well as consumer price indices (CPI) in their assessment of infl ation expectations. I believe that this should be an essential analysis to avoid unintended consequences in the future, and a possible next fi nancial crisis that central banks will be unable to face with the same tools of the past.

scholarly journals The Role Of Turkish Central Bank During And After The 2008-Financial Crises

2011 ◽  
Vol 10 (12) ◽  
pp. 93
Author(s):  
Ayhan Guney
Keyword(s):  
Central Bank ◽  
Financial Crises ◽  
Central Banks ◽  
Fiscal Policies ◽  
Monetary Policies ◽  
The World ◽  
One Year ◽  
Short Time ◽  
Time Spread

The Global Financial Crises occurred at the end of 2008, and in very short time, spread to all sectors of economy.All countries were badly hit by the crises and the World economies shrank almost $50 trillion, the equivalent of one year of world GDP.During the process, especially the banking sectors of the world economies was smashed, and many banks and financial institutions bankrupted and some others liquidated such as Lehman Brothers. All countries took the drastic fiscal and monetary measures to overcome the global crises. So, this paper focuses on the functions of central banks asking that what the role of central banks to cope with the global crises was, and thus omits the side of fiscal policies implemented by different countries.It especially discusses the role of Turkish Central Bank and its monetary policies during and after the 2008-Global Financial Crises. What was the achievement of the measures taken and the monetary policies implemented by Turkish Central Bank during and after the financial crises?

scholarly journals Communication, Credibility, and Price Stability: Lessons Learned from Japan

2012 ◽  
pp. 1-4
Author(s):  
Owen F. Humpage
Keyword(s):  
Central Banks ◽  
Lessons Learned ◽  
Price Stability ◽  
Monetary Policies ◽  
The Public ◽  
European Central ◽  
The Past ◽  
Central Bankers

Over the past couple of decades, central banks have been taking steps to increase the transparency of their monetary policies through clearer communications with the public. While there are many differences between the economic challenges Japan has been struggling with in the past decade and those facing U.S. and European central bankers now, we can learn a great deal about combating deflation from Japan’s experiences.

Balance sheet wars will fire up among central banks

2015 ◽  
Keyword(s):  
Balance Sheet ◽  
Central Banks ◽  
Monetary Policies ◽  
The World

A look at the likely divergence of monetary policies around the world

Conceptual provisions of management percentage risk in international practice

2021 ◽  
pp. 205-218
Author(s):  
Valentin Yur’evich Vakhrushev ◽  
Andrey Viktorovich Zakharov ◽  
Mikail Bekzadaevich Khudzhatov
Keyword(s):  
Russian Federation ◽  
Commercial Banks ◽  
Banking System ◽  
Developed Countries ◽  
Central Banks ◽  
Interest Rate Risk ◽  
Global Banking ◽  
The World ◽  
The Face ◽  
The Russian Federation

In the face of the COVID-19 pandemic world banking system is being severely tested. The last time such shocks occurred during the global fi nancial crisis of 2008–2009. However, the crisis of the global banking system in 2020 caused by the COVID-19 pandemic is very diff erent from the global fi nancial crisis of 2008–2009. During the previous global fi nancial crisis, central banks around the world were able to cut key rates to stimulate the aff ected economy, while the current crisis is taking place in conditions of extremely low and even negative key rates. Consequently, the central banks of the economically developed countries of the world lack one of the most eff ective tools to stimulate the economy in the face of a global crisis. Since the maximum income of commercial banks is generated by the operation of high key rates, the downward trend in recent years is a serious risk to the business of commercial banks. The article analyses the dynamics of key rates in the economically developed countries of the world in comparison with China and the Russian Federation, based on the results of this document, the main trends and patterns were identified, the most dangerous risks for commercial banks are shown. Besides the article discusses the modern conceptual provisions of interest rate risk management in commercial banks of the Russian Federation. They form the basis for the development of constructive methods for assessing commercial risk and the formation of managerial decisions that ensure its prevention or reduction of negative consequences in the event of the implementation of risk events that determine it.

Explaining the Global Economic Crisis

1999 ◽  
Vol 5 (1) ◽  
pp. 103-144 ◽  
Author(s):  
Anwar Shaikh
Keyword(s):  
Economic Crisis ◽  
Financial System ◽  
New Order ◽  
Business Failures ◽  
Global Economic Crisis ◽  
Post War ◽  
Economic Boom ◽  
Global Financial System ◽  
Advanced Capitalist

AbstractDuring the late 1960s, the long post-war economic boom which had characterised the advanced capitalist countries began to fade away. In its wake came an equally long era of stagnation, decline, and political and economic turbulence. Unemployment, inflation, falling profitability, business failures and bankruptcies were the new order of the day, and it became commonplace to see fearful headlines about the possible collapse of the global financial system or even of accumulation itself.

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