Sources of Financial Instability in the context of the Financial Crisis. A Literature Review

Abstract

Abstract: Nowadays, the countries still face new challenges in sustaining their own financial systems, designing a credible regulatory framework, a better cooperation line and a solid cross-border crisis management. The aim of this paper is to underline the main sources of financial instability in the context of the international crisis. The study is structured on two sections: the first one presents the theories of the financial instability, developed by the economists; the second part summarizes the opinions of the bankers, researchers and practitioners regarding traditional and modern causes of the financial instability in the actual framework. To conclude, defining the threatening factors must consider the characteristics of the national economies, the level of exposure and the historical experience.financial instability; financial crisis; risks