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Book part
Publication date: 17 August 2011

Biswa Nath Bhattacharyay

Several developing economies witnessed a large number of systemic financial and currency crises since the 1980s that resulted in severe economic, social, and political…

Abstract

Several developing economies witnessed a large number of systemic financial and currency crises since the 1980s that resulted in severe economic, social, and political problems. The devastating impact of the 1982 and 1994–1995 Mexican crises, the 1997–1998 Asian financial crisis, the 1998 Russian crisis, and the ongoing financial crisis of 2008–2009 suggests that maintaining financial sector stability through reduction in vulnerability is highly crucial. The world is now witnessing an unprecedented systemic financial crisis originated from the USA in September 2008 together with a deep worldwide economic recession, particularly in developed countries of Europe and North America. This calls for devising and using on a regular basis an appropriate and effective monitoring and policy formulation system for detecting and addressing vulnerabilities leading to crisis. This chapter proposes a macroprudential/financial soundness monitoring, analysis, and remedial policy formulation system that can be used by most developing countries with or without crisis experience as well as with limited data. It also discusses a process for identifying and compiling a set of leading macroprudential/financial soundness indicators. An empirical illustration using Philippines data is presented. There is an urgent need for increased coordination, collaboration, and partnership among central banks, banking and financial market supervision agencies, and ministries of finance, economic, and planning for proper macroprudential monitoring. A high-level national financial stability committee under the auspices of the head of the state as well as a ‘‘regional financial stability board’’ needs to be established to complement and support the activities of an “international stability board.”

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Article
Publication date: 19 March 2018

Enrico Beltramini

The purpose of this paper is to introduce the work of Mark Coeckelbergh into the field of management.

Abstract

Purpose

The purpose of this paper is to introduce the work of Mark Coeckelbergh into the field of management.

Design/methodology/approach

This is a conceptual paper with interviews.

Findings

The author suggests that Coeckelberghs’ considerations of an anthropology of vulnerability have the potential to provide a rich and insightful exploration of the machine-human interface, which is not afforded by many of the current approaches taken in this field. Their development of an anthropology of vulnerability suggests an approach to the machine-human interface that re-frames the machine-human interface in terms of human vulnerability, rather than machine’s performance, and sustains that the machine-human interface can be understood in terms of the transfer of human vulnerability.

Research limitations/implications

This paper reveals some of the possibilities inherent in Coeckelbergh’s theories by providing an analysis of a specific event, the recent introduction of robo-advisors in portfolio management, from a Coeckelberghian perspective and by exploring some of the implications of this type of approach for the machine-human interface.

Originality/value

As far as the author knows, there is no previous paper on this topic.

Details

Baltic Journal of Management, vol. 13 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

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Article
Publication date: 4 October 2011

Lukasz Prorokowski

Previous academic literature indicates that the case of the banking crises recovery, in view of implemented regulations and policies, differs across times and countries…

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1347

Abstract

Purpose

Previous academic literature indicates that the case of the banking crises recovery, in view of implemented regulations and policies, differs across times and countries. This is explained by varied institutional environments in which banking sectors operate, and in which financial crises persist. Therefore, the aim of this study is to prioritize investigation of the regulatory framework in the crisis‐response policies across European countries affected by the current financial turmoil. In order to elicit most accurate results and fill in the gap in existing literature on banking crises, the paper aims to focus on both qualitative and quantitative methodological frameworks in order to ensure that the concerns raised by practitioners are addressed and implications for the regulatory processes instrumented.

Design/methodology/approach

The emphasis of the current study has been laid to flag the region‐ and country‐specific vulnerabilities in regulatory framework employed for banking crisis recovery. Additional focus has been put on groups of systemic risk which evolved from the current financial crisis and ways these risks can be ameliorated. Furthermore, the current paper strives to explore the ideas of ways to ameliorate negative outcomes of the global crisis and mitigate common risks with reference to the flawed regulations. Especially, important issues have been raised by the interviewed experts who put forward their opinions on the ways of lifting the regulatory shortcomings and costs of remedies identified in the study and who provided solutions to ensuring the financial stability of European capital markets.

Findings

The study highlighted areas of regulations that require immediate attention and which failed to prevent financial markets from the current banking crisis. These findings are then summarized with constructive proposals on how to amend banking sector and financial regulations. The study also provides a cross‐European comparison of the financial crisis‐recovery policies, evaluating solutions adopted in various selected European countries. Henceforth, the empirical model tested the possibility of a tradeoff existing between remedies which involve substantial public funds and exert burden on both fiscal balances and taxpayers, and the speed and effectiveness of the recovery processes. To this point, no tradeoff has been found. Moreover, contrasting the current banking crisis to the past financial market disturbances, highlighted the magnitude of the nascent economic downturn prevailing in Europe.

Originality/value

Since the existing body of literature abounds in studies devoted to investigations of the causes for the current banking crisis, the research focus of this paper has been shifted away from the factors and flawed regulations that trigger banking crises. To this point, the paper has traits of pioneering work.

Details

Qualitative Research in Financial Markets, vol. 3 no. 3
Type: Research Article
ISSN: 1755-4179

Keywords

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Article
Publication date: 16 August 2011

Dieter Gramlich and Mikhail V. Oet

Lessons from the most recent financial crisis show specific vulnerabilities of financial markets due to weaknesses in the structure of the financial system (structural…

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2025

Abstract

Purpose

Lessons from the most recent financial crisis show specific vulnerabilities of financial markets due to weaknesses in the structure of the financial system (structural fragility). As the literature points out, the impact of systemic risk can be closely related to issues of concentration (“too big to fail”) and dependency (“too connected to fail”). However, different structural variables are emphasized in various ways, and most authors analyze each variable separately. This raises the questions of how structural fragility, as a cause of systemic distress, can be assessed more comprehensively and consistently, and what the implications are for modeling it within an integrated systemic risk framework. This paper seeks to address these issues.

Design/methodology/approach

On the basis of theoretical considerations and in the light of current transformations in financial markets, this paper explores elements of structural fragility and the requirements for modeling them.

Findings

The paper suggests an extended approach for conceptualizing structural fragility, evaluates directions for quantifying structural issues in early warning systems (EWSs) for systemic crises, and lays a theoretical groundwork for further empirical studies.

Originality/value

The need for supervisory actions to prevent crises is urgent, as is the need for integrating structural aspects into EWSs for systemic financial crises. Since a significant aspect of a financial firm's risk comes from outside the firm, individual institutions should understand and monitor the structural aspects of the various risk networks they are in.

Details

The Journal of Risk Finance, vol. 12 no. 4
Type: Research Article
ISSN: 1526-5943

Keywords

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Article
Publication date: 12 July 2021

Imran Abbas Jadoon, Raheel Mumtaz, Jibran Sheikh, Usman Ayub and Mohammad Tahir

The international institutions, policymakers and governments are promoting green growth as a policy objective for global financial stability (FS) without sound empirical…

Abstract

Purpose

The international institutions, policymakers and governments are promoting green growth as a policy objective for global financial stability (FS) without sound empirical investigation. Therefore, the purpose of this study is to investigate whether the green economy would be successful in achieving its main objective i.e. stabilizing the world financial system because the investment stakes are too high for this green transition.

Design/methodology/approach

The study used the two-step system generalized method of moments (GMM) methodology on panel data of 90 countries for 6 years from 2010 to 2015 to investigate the impact of green growth economy on FS.

Findings

The results of the current study revealed that overall green growth enhanced FS in the country for both the short and long run. However, the social inclusive dimension of green growth was irrelevant in creating FS.

Research limitations/implications

The results of the current study validate the growth-led finance hypothesis and encourage the policymakers to strengthen the policy initiative for green growth. Because green growth mitigates economic and environmental risk to create a stable financial environment. However, social inclusiveness needs to be explored through alternate paradigm in relevance to FS.

Originality/value

As per the author’s knowledge, it is a pioneer study to empirically investigate the impact of green growth on FS which would be useful in understanding the green growth and FS dynamics.

Details

Journal of Financial Regulation and Compliance, vol. 29 no. 5
Type: Research Article
ISSN: 1358-1988

Keywords

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Article
Publication date: 24 July 2007

Ingrid Pusey

The purpose of this paper is to examine the evolving role of financial sector regulators in the global effort to combat financial crimes. In particular, it seeks to…

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1364

Abstract

Purpose

The purpose of this paper is to examine the evolving role of financial sector regulators in the global effort to combat financial crimes. In particular, it seeks to address the factors that shaped the role of Caribbean regulators in this effort.

Design/methodology/approach

Case studies, secondary research and analyses of international requirements and domestic legislation.

Findings

Financial sector regulators in the Caribbean face numerous challenges endemic to small economies in meeting international expectations in relation to the fight financial crimes. This is particularly true of states that rely on the provision of off‐shore financial services as the economic mainstay. In spite of this, the region has made significant strides in addressing global demands.

Originality/value

This paper offers a perspective from the Caribbean region. It should be of interest to regulators and practicing lawyers.

Details

Journal of Financial Crime, vol. 14 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

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Expert briefing
Publication date: 25 September 2015

Her comments followed the Fed's September 17 decision to keep rates unchanged because of concerns about financial turmoil and economic weakness in emerging markets (EMs)…

Details

DOI: 10.1108/OXAN-DB205579

ISSN: 2633-304X

Keywords

Geographic
Topical
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Article
Publication date: 11 November 2019

Beatriz Fernández-Olit, José María Martín Martín and Eva Porras González

The purpose of this paper is to provide a systematic literature review of the research published on financial inclusion (FI) and financial exclusion (FE) in developed…

Abstract

Purpose

The purpose of this paper is to provide a systematic literature review of the research published on financial inclusion (FI) and financial exclusion (FE) in developed countries using key terms and strict inclusion and exclusion criteria.

Design/methodology/approach

In total, 52 papers were deemed to be relevant to the analysis. These works were critiqued using a framework that addressed geographical contexts, topics, methodologies and theoretical frameworks.

Findings

This review highlights the uneven level of development of the academic debate between North America, the UK and continental Europe, and identifies the different theoretical frameworks that construe the body of literature in each region. In addition, the findings show the scant offer of work on the impact that the digital economy has on FE, as well as the reduced number of studies which have focused on certain vulnerable groups and the access to some financial services.

Social implications

The studies reviewed have not analyzed the specific needs of vulnerable groups while considering the different contexts and pathways to exclusion. The evaluation of solutions and strategies to achieve inclusion is one of the least addressed aspects in the literature.

Originality/value

The paper synthesizes the main contributions of the top literature on the redefinition of FI/FE in developed countries, the role of fringe services and new determinants of exclusion. The proliferation of studies regarding FI in low- and middle-income countries has generated a great amount of meta-analysis and systematized reviews of asymmetric results. However, no systematized literature review on the broad scope of FI/FE in developed countries has been published in the last decade. This work sheds light over poorly analyzed areas of research that refer to notable social problems.

Details

International Journal of Bank Marketing, vol. 38 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

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Article
Publication date: 6 January 2021

Rexford Abaidoo

This study examines dynamics of global and regional financial market efficiency; and how specific features of the market and other conditions influence variability in such…

Abstract

Purpose

This study examines dynamics of global and regional financial market efficiency; and how specific features of the market and other conditions influence variability in such efficiency.

Design/methodology/approach

The study employs fixed effects statistical approach in its examination of how specific features of financial markets influence variability in its efficiency.

Findings

This study finds that individual IMF defined economic regions tend to exhibits significantly different financial market efficiency characteristics given specific market features and conditions. In regional level comparative analysis (e.g. Europe, Africa, Asia–Pacific etc.) this study finds that incidence of financial market uncertainty is the dominant condition with significant effect on financial market efficiency across all the IMF regions. In the global level analysis, empirical estimates presented suggest that financial market uncertainty, financial institutional depth and financial institutional efficiency tend to have significant positive influence on global financial market efficiency all things being equal. In the same analysis however, this study finds that financial market and financial institutional access growth has significant negative impact on financial market efficiency.

Originality/value

The uniqueness of this study compared to related ones found in the literature stems from its focus on financial market efficiency at the global, and IMF defined regional block level instead of on a specific economy as often found in the literature. Additionally, in contrast to other related studies, this study further examines the role of global financial market uncertainty in its financial market efficiency analysis. Financial market uncertainty variable may be unique to this study because the variable is derived through an econometric process from a base variable.

Details

American Journal of Business, vol. 36 no. 3/4
Type: Research Article
ISSN: 1935-5181

Keywords

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Article
Publication date: 17 July 2019

Thomas C. Chiang

The purpose of this paper is to investigate the risk and economic policy uncertainty (EPU) shocks on China’s equity markets while controlling for changes in sentiments and…

Abstract

Purpose

The purpose of this paper is to investigate the risk and economic policy uncertainty (EPU) shocks on China’s equity markets while controlling for changes in sentiments and liquidity.

Design/methodology/approach

The GED-TARCH(1,1)-M procedure is used in estimations to deal with the heteroscedasticity problem.

Findings

Evidence shows that stock returns are positively correlated with predictable volatility and lagged downside risk. This study indicates that the stock returns are negatively correlated with both local and global uncertainty innovations. The test results are robust across different measures of stock returns and model specifications. The global EPU innovations have more profound impact on stock returns than that of Chinese EPU.

Research limitations/implications

The findings are based on the data in the China’s stock market, other global markets may be considered in the future research.

Practical implications

Evidence indicates that a rise in EPU produces a negative effect on stock returns at the time news hits a market; however, investors will be rewarded by a premium as prices rebound in the subsequent period for compensating the investment decision made at a high uncertainty period.

Originality/value

The excess stock returns are negatively related to the EPU innovations, regardless of whether EPU originates from a domestic source or external sources.

Details

China Finance Review International, vol. 9 no. 4
Type: Research Article
ISSN: 2044-1398

Keywords

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