Financial Crisis, Bank Behaviour and Credit Crunch

This book explores some relevant distortions and market failures in financial and banking markets caused by the recent financial crisis and offers important insights to policymakers as well. After having introduced the reader to the economic background behind the origin of the present financial turmoil, the book proposes a distinct angle to look at some macro and microeconomic aspects. The volume discusses whether and to what extent policies, implemented by governments and monetary authorities to countervail bank defaults and avoid a disastrous financial instability, have in some way determined opportunistic conducts (moral hazard), changes in banks' behaviour, distortive incentives and market failures. Furthermore, the book offers a viewpoint on the effects of the evolution of regulation for the banking sector. Finally, the book assesses how the increase in the cost of funding and the shrinking in credit supply (credit crunch) has modified the financial structure of small and medium firms. To illustrate this, some specific cases at Italian regional level are examined.

Includes supplementary material: sn.pub/extras

Auteur

Stefania P. S. Rossi is Professor of Economics at the Department of Economics and Business of the University of Cagliari. She has been Visiting Scholar at the Stanford University, Research Economist at the World Bank, Professor at the University of Vienna and at the International Diplomatic Academy of Vienna. Her publications comprise many articles in international academic journals.

Roberto Malavasi is Chair of Financial Markets and Institutions at the Department of Economics and Business of the University of Cagliari. He has been teaching Banking and Finance for more than 40 years. His publications comprise articles either in Italian and international journals, as well as some finance and international finance textbooks.

Texte du rabat

This book presents original contributions assessing the effects the 2008 financial crisis has had on bank behaviour, regulation and credit access. After describing some of the economic aspects behind the outbreak and later developments in the recent financial turmoil, it examines the strategic responses of banks, firms and institutions, at both the macro and micro level. In this regard, the book discusses the extent to which policies implemented by governments and monetary authorities encouraged opportunistic behaviour and produced distorted incentives and market failures. Subsequently, it presents various viewpoints on how changes in bank regulations influenced bank lending, bank risk and bank funding sources. Lastly, the book evaluates the impact of the financial crisis on the cost of funding and the shrinking credit supply, examining specific cases at the regional level in Italy.

Contenu

Genesis and Evolution of the Global Financial Crisis: The Crisis of International Finance, the Eurozone and Economic Growth.- The European Twin Sovereign Debt and Banking Crises.- Bank Opportunistic Behaviour and Structural Reforms: Moral-Hazard Conduct in the European Banks During the First Wave of the Present Financial Crisis.- Agency Problems in Banking: Types of and Incentives for Risk Shifting.- Structural Reform, Too-Big-to Fail and Banks as Public Utilities in Europe.- Bank Regulation, Credit Access and Bank Performance: Did Basel II Affect Credit Growth to Corporate Borrowers During the Crisis?- Bank Profitability and Capital Adequacy in the Post-Crisis Context.- Bank Credit Access and Gender Discrimination: Some Stylized Facts.- When Do Individual Bank Executives Matter for Bank Performance?- Credit Crunch: Regional Issues: Bottlenecks of the Financial System at National and Regional Level: The Case of Italy and Sardinia.- The Potential Evolution of the Supply of Credit to the Productive Chain: A Focus on Italy and the Regional Sardinian Economy.- Direct Access to the Debt Capital Market by Unlisted Companies in Italy.