The Impact of the 2008 Global Crisis on the Banking System
This paper examines the impact of the 2008-2009 Global Crisis on the banking systems of the countries around the world. Nine variables are examined which include bank concentration, bank deposits, 5-bank asset concentration, liquid liabilities, net loans from non-resident banks, outstanding loans fr...
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| Language: | English |
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Academic Research and Publishing UG
2021-09-01
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| Series: | Financial Markets, Institutions and Risks |
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| Online Access: | https://armgpublishing.com/wp-content/uploads/2021/10/1.pdf |
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| author | Halil D. Kaya |
| author_facet | Halil D. Kaya |
| author_sort | Halil D. Kaya |
| collection | DOAJ |
| description | This paper examines the impact of the 2008-2009 Global Crisis on the banking systems of the countries around the world. Nine variables are examined which include bank concentration, bank deposits, 5-bank asset concentration, liquid liabilities, net loans from non-resident banks, outstanding loans from non-resident banks, offshore bank deposits, remittances, and consolidated foreign claims. The paper looks at how each of these banking system variables had changed before the crisis, during the crisis, and after the crisis. The results show that during the run-up to the crisis, 8 out of the 9 variables had not changed significantly (only net loans from non-resident banks had declined significantly), therefore we argue that there was almost no sign of an upcoming crisis during the run-up period. Still, policymakers may use such a sudden significant decline in loans from non-resident banks as a warning sign. The results show that, during the crisis period, the net loans from non-resident banks continued to decline. Also, during the crisis period, offshore deposits significantly declined. During this period, there was no significant change in the other variables. Therefore, we conclude that the crisis mainly affected the loans from non-resident banks and the offshore deposits. When the post-crisis period is examined, the results show that bank deposits and loans from non-resident banks had increased significantly. There was no significant change in the other variables. We suggest policymakers to use these findings when developing strategies to protect their country’s banking system in the face of an economic crisis. |
| format | Article |
| id | doaj-art-220e6595e92d4b71823f75eac7c83cd8 |
| institution | DOAJ |
| issn | 2521-1250 2521-1242 |
| language | English |
| publishDate | 2021-09-01 |
| publisher | Academic Research and Publishing UG |
| record_format | Article |
| series | Financial Markets, Institutions and Risks |
| spelling | doaj-art-220e6595e92d4b71823f75eac7c83cd82025-08-20T03:08:59ZengAcademic Research and Publishing UGFinancial Markets, Institutions and Risks2521-12502521-12422021-09-015351310.21272/fmir.5(3).5-13.2021The Impact of the 2008 Global Crisis on the Banking SystemHalil D. Kaya0https://orcid.org/0000-0002-7535-9857Professor of Finance, Department of Accounting and Finance, College of Business and Technology, Northeastern State University, USAThis paper examines the impact of the 2008-2009 Global Crisis on the banking systems of the countries around the world. Nine variables are examined which include bank concentration, bank deposits, 5-bank asset concentration, liquid liabilities, net loans from non-resident banks, outstanding loans from non-resident banks, offshore bank deposits, remittances, and consolidated foreign claims. The paper looks at how each of these banking system variables had changed before the crisis, during the crisis, and after the crisis. The results show that during the run-up to the crisis, 8 out of the 9 variables had not changed significantly (only net loans from non-resident banks had declined significantly), therefore we argue that there was almost no sign of an upcoming crisis during the run-up period. Still, policymakers may use such a sudden significant decline in loans from non-resident banks as a warning sign. The results show that, during the crisis period, the net loans from non-resident banks continued to decline. Also, during the crisis period, offshore deposits significantly declined. During this period, there was no significant change in the other variables. Therefore, we conclude that the crisis mainly affected the loans from non-resident banks and the offshore deposits. When the post-crisis period is examined, the results show that bank deposits and loans from non-resident banks had increased significantly. There was no significant change in the other variables. We suggest policymakers to use these findings when developing strategies to protect their country’s banking system in the face of an economic crisis.https://armgpublishing.com/wp-content/uploads/2021/10/1.pdfbanksbankingglobal crisisfinancial crises |
| spellingShingle | Halil D. Kaya The Impact of the 2008 Global Crisis on the Banking System Financial Markets, Institutions and Risks banks banking global crisis financial crises |
| title | The Impact of the 2008 Global Crisis on the Banking System |
| title_full | The Impact of the 2008 Global Crisis on the Banking System |
| title_fullStr | The Impact of the 2008 Global Crisis on the Banking System |
| title_full_unstemmed | The Impact of the 2008 Global Crisis on the Banking System |
| title_short | The Impact of the 2008 Global Crisis on the Banking System |
| title_sort | impact of the 2008 global crisis on the banking system |
| topic | banks banking global crisis financial crises |
| url | https://armgpublishing.com/wp-content/uploads/2021/10/1.pdf |
| work_keys_str_mv | AT halildkaya theimpactofthe2008globalcrisisonthebankingsystem AT halildkaya impactofthe2008globalcrisisonthebankingsystem |