Banking crisis. Case of U.S. banks versus UK banks

A variety of factors led or contributed to the current financial crisis, including loose monetary policy; excessive financial market liquidity, leverage and maturity mismatch; weak risk management and underwriting standards; and poor incentives and regulatory gaps in some important segments of the financial system. These weaknesses were amplified by certain pro-cyclical dynamics in regulatory, accounting and risk management frameworks. The banking sector was at the centre of the crisis as the market stress led to an acute re-concentration of on- and off-balance sheet risks in banks, putting pressure on capital buffers, liquidity and credit availability. The weaknesses in the banking sector amplified the transmission of shocks from the financial sector to the real economy. In this paper we want to study the impact of financial crisis on a sample of banks (five banks from USA - JPMorgan Chase & Co, Citigroup, Wells Fargo & Company, US Bancorp, Bank of America Corporation - and five from UK - HSBC Holdings, Royal Bank of Scotland, Barclays, Standard Chartered, Lloyds Banking).banking crisis, interest rate of monetary policy, loan loss provision

THE FINANCIAL CRISIS AND THE IMPACT OVER THE SECTORS OF ECONOMY

The financial crisis is perceived as a tsunami wave started in july in the United States and which is presented on all countries in Europe and around the world. Mortgage crisis has affected indirectly the Romanian economy. The main factor which affected tfinancial crisis, economy, interest rate

IMPACT OF FINANCIAL CRISIS OVER THE COMPANIES OF BET INDEX COMPOSITION

Mortgage crisis has affected indirectly three risk levels of the Romanian economy: the currency, external financing and the stock exchange. Foreign exchange market in Romania is of little depth, open to the speculation stormings. Romanian stock indices fefinancial crisis, stock exchange, BET index

IMPACT OF FINANCIAL CRISIS ON CONSTRUCTION FIRM`S COST OF CAPITAL

The average cost of debt is negatively related with size, tangibility, firm growth, the leverage ratio, and the ratio of long- to short-term debt and positively to profitability. We find that the recent international crisis did have a significant impact on the set of firms in our sample, but affected the way in which leverage and the interest to debt ratio relate to firm fundamentals. In this article, we want to study the impact of financial crisis on the cost of capital using a sample of construction companies.asset pricing cost of capital, financial crisis,CAPM

The global financial crisis and its implications on the Romanian banking systems

The current financial crisis seems to be more painful than those occurring in recent decades. This crisis caused a massive decline in the market confidence of both businesses and consumers. The crisis has affected a multitude of economic and financial activities such as financial markets that have registered genuine reductions, serious problems of liquidity and depreciation of national currencies. Worldwide banking systems are one of the major areas that were affected by the crisis, with considerable bankruptcies landslide. This study investigates the effects of financial crisis on the banking system from Romania while highlighting the challenges brought by the crisis.financial crisis, banking system, financial markets, liquidity, bankruptcies

Shock And Volatility Transmissions Between Bank Stock Returns In Romania: Evidence From A VAR-GARCH Approach

We develop a VAR-GARCH approach to investigate shock and volatility transmissions between bank stock returns in Romania during the 2007-2009 international financial crisis. Our findings provide evidence of significant shock and volatility transmissions between Romanian bank returns. We also show how our empirical results can be used to build effective diversification and hedging strategies

DID EUROPEAN COUNTRIES SUFFER FROM DIFFERENT CALCULATION OF HDI?

The Human development index (HDI) was introduced for the first time in the summer of 1990. The objective was to provide a more complex indicator that captures a country`s development level better than the gross national product. UNDP (United Nations Development Programme) justified this approach by the need to attempt to provide an informative value that exceeds the strict quantitative aspects. This article analyzes the impact of different calculation of HDI, by comparing the values of the index calculated relying on the Human Development Report from 2005 with the values of the index calculated based on the Human Development Report from 2010 for 10 European countries (five emerging countries and five developed countries). When using the new methodology in calculating the Human Development Index, there is a small and insignificant difference. The HDI values obtained based on the new methodology from the Human Development Report from 2010 are smaller, but these values do not change their rank

Do Recent Stochastic Tools Help To Better Understand Investors Preference And Asset Allocation?

This paper contributes to the existing literature by investigating how recent developments in stochastic dominance can be implemented to better understand the statistical characteristic of distributions associated with traded financial assets. In particular, we assess the impact of a shock which occurs in the evolution of a time series on the investors preferences based on data from European developed and emerging stock markets. We show that stochastic dominance tools form a useful tool in risk aversion analysis and asset allocation