Index
Understanding Financial Stability
ISBN: 978-1-78756-834-1, eISBN: 978-1-78756-833-4
Publication date: 4 December 2018
This content is currently only available as a PDF
Citation
Ramlall, I. (2018), "Index", Understanding Financial Stability (The Theory and Practice of Financial Stability, Vol. 1), Emerald Publishing Limited, Leeds, pp. 137-142. https://doi.org/10.1108/978-1-78756-833-420181006
Publisher
:Emerald Publishing Limited
Copyright © 2019 Emerald Publishing Limited
INDEX
ABCP. See Asset-Backed Commercial Paper (ABCP)
Acharya, V., 84, 85
Adverse selection, 88–89
AI. See Artificial intelligence (AI)
API. See Application Program Interface (API)
Application Program Interface (API), 77
Article IV consultations, 38
Artificial intelligence (AI), 77
Asian financial crisis (1997–1998), 86
Asset-Backed Commercial Paper (ABCP), 85
Asset-backed securities, working mechanism of, 117
Asset price bubbles, 89–92
Azerbaijan, 59
Balance of payments crisis, 101
Bangladesh, 60
Banking crises
causes of, 94–96
costs of, 96
Banking sector, 56–57
Bank managers, 4
Bank of Albania, 21–24
Bank of Canada, 20–21
Bank of England, 19
The Bank of Greece, 18
‘Bankruptcy remote’, 119
Banque de France, 18
Barnett, W. A., 105
Basel Committee on Banking Supervision (BCBS), 25
BCBS. See Basel Committee on Banking Supervision (BCBS)
Behavioural finance, 101–102
Beltratti, A., 6
Big Data analytics, 74
Binary metrics of financial stability, 53
Biometrics, 78
Bitcoins, 75–80
1987 Black Monday, 86
Boer, M., 75
Bond valuation methods, 2
Boom/bust analysis of markets, 91
Bordo, M., 97
Born, B., 34
Brennan, S., 9
Bretton Woods global system, 97
Broz, J. L., 31
Business loans, 79
Capital, defined, 8
Capital markets, 14
Capital structure of firms, 2
Caprio, G., 31
CBOs. See Collateralised Bond Obligation (CBOs)
CDOs. See Collateralised Debt Obligations (CDOs)
CDS. See Credit default swaps (CDS)
Central Bank of Armenia, 19
Central Bank of Bahrain, 17
Central Bank of Germany, 21
Central Bank of Iceland, 19
Central Bank of Namibia, 20
The Central Bank of Nepal, 20
The Central Bank of Swaziland, 17
Central Bank of the Kingdom of Denmark, 15
Central Bank of the Republic of Austria, 18
Central Bank of the Republic of Hungary, 17–18
Central banks’ required reserve ratios, 121–123
Christensson, J., 34
CLOs. See Collateralised Loan Obligation (CLOs)
Cloud computing, 74
CMOs. See Collateralised Mortgage Obligations (CMOs)
Collateralised Bond Obligation (CBOs), 117
Collateralised Debt Obligations (CDOs), 117
Collateralised Loan Obligation (CLOs), 117
Collateralised Mortgage Obligations (CMOs), 117
Commercial banks, 85
Commodities investment, 6
Commodity markets, 14
Continuous metrics of financial stability, 53
Core capital, 8
Corporate sector, 57–58, 66
Correa, R., 34
Credit crunch, 127
Credit default swaps (CDS), 35
Credit frictions, 88–89
Credit provision, 6
Crowdfunding platforms, 79
Cryptocurrencies, 76, 80
Cryptography, 78
Cukierman, A., 36
Currency crises, 96–100
Cyberattacks, 75
Cyber-security, 75
Danmarks Nationalbank, 15
Debt crisis, 102
Degree of short terminism, 50
Denmark, 60–61
Deposit insurance, 94
Deposit margin, 127
Derivatives markets, 14, 27
The Deutsche Bundesbank, 21
Diamond, D. W., 52
Digital-based crises, 106
Digital payments, 79
Discredited theory, 4–5
Distributed ledger technology (DLT), 77–78
DLT. See Distributed ledger technology (DLT)
Domestic debt crises, 102
Dot-com bubble, 87
DSGE models. See Dynamic Stochastic General Equilibrium (DSGE) models
Dynamic Stochastic General Equilibrium (DSGE) models, 11
‘Dysfunctional finance’, 9
ECB. See European Central Bank (ECB)
ECF. See Extended Credit Facility (ECF)
ECH. See Electronic clearing house (ECH)
Efficient market hypothesis, 101
Ehrmann, M., 34
Eichengreen, B., 97
Electronic clearing house (ECH), 64
Elson, A., 101
E-money, 79
ETFs. See Exchange Traded Funds (ETFs)
European Central Bank (ECB), 15–16
European Systemic Risk Board Recommendation, 100
Eurosystem, 62
Exchange Traded Funds (ETFs), 127
Extended Credit Facility (ECF), 60
External debt crisis, 102
FDI. See Foreign Direct Investment (FDI)
The Federal Reserve Bank in US, 20
FIFIM. See Financial Intermediation Services Indirectly Measured (FIFIM)
Fijian financial system, 21
Finance
defined, 1–2
discredited theory in, 4–5
features in, 3–4
great recession, 8
illusionary contribution of, 9–10
insolvency risk versus illiquidity risk, 8
misinterpreted role of, 10–11
provision of goods and services, 3
self-interest of bank managers, 4
shortcomings embedded in, 5–7
solutions to identified shortcomings, 7–8
Financial crises
costs of, 106–107
effects of, 87
features of, 87–88
management, 105
theories of
asset price bubbles, 89–92
balance of payments crisis, 101
banking crises, 92–94
behavioural finance, 101–102
credit frictions and market freezes, 88–89
currency crises, 96–100
debt crisis, 102
failures of existing theories, 104–105
systemic liquidity crises, 103
with trend shifting to digital currencies, 105–106
types of, 85–87
Financial Crisis Inquiry Commission, 73
Financial instability, 16, 30
Financial Intermediation Services Indirectly Measured (FIFIM), 50
Financial lease, 128
Financial Policy Committee, 19
Financial Sector Assessment Programme (FSAP), 36–42
Financial Soundness Indicators (FSIs), 38
Financial stability
analyst, 53
defined by different institutions worldwide
Bank of Albania, 21–24
Bank of Canada, 20–21
Bank of England, 19
The Bank of Greece, 18
Banque de France, 18
Central Bank of Armenia, 19
Central Bank of Bahrain, 17
Central Bank of Iceland, 19
Central Bank of Namibia, 20
The Central Bank of Swaziland, 17
Central Bank of the Kingdom of Denmark, 15
The Deutsche Bundesbank – Central Bank of Germany, 21
European Central Bank, 15–16
The Federal Reserve Bank in US, 20
The Magyar Nemzeti Bank – Central Bank of the Republic of Hungary, 17–18
National Bank of Georgia, 16–17
Nepal Rastra Bank – The Central Bank of Nepal, 20
The Oesterreichische Nationalbank (OeNB) – Central Bank of the Republic of Austria, 18
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
dynamic issue, 28
predictability/resilience, 28
risks, 28, 55–66
Financial Stability Board (FSB), 42, 71–80
Financial Stability Reports (FSRs), 33–36
Financial system, 27–28
metrics of, 48–52
FinTech, 71–81
Foreign debt crisis, 102
Foreign Direct Investment (FDI), 102
Foreign exchange markets, 14
Fratzscher, M., 34
Frieden, J. A., 31
FSAP. See Financial Sector Assessment Programme (FSAP)
FSB. See Financial Stability Board (FSB)
FSIs. See Financial Soundness Indicators (FSIs)
FSRs. see Financial Stability Reports (FSRs)
‘The Future of Finance’, 6
Garud, K., 34
GFSR. See Global Financial Stability Report (GFSR)
Glass-Steagall Banking Act of, 1933, 111
Global Financial Stability Report (GFSR), 43–44
Global shocks, 101
Goodhart, C., 8, 106
Gorton, G., 84
Great depression, 8
Great recession, 8–9
Gujarati, D., 21
Haggard, S., 31
Haldane, A., 9, 27, 84
Healthy financial system, 19
Household sector, 58
Hughes, J. P., 4
IMF. See International Monetary Fund (IMF)
Inadequate economic policy, 18
Inefficient resource allocation, 18
Information asymmetry, 2
Institute of International Finance, 71
International Monetary Fund (IMF), 9
global financial stability report, 43–44
International remittances, 79
Internet of Things (IoT), 77
Intertemporal dimensions, 2
IoT. See Internet of Things (IoT)
Italian Banking Association, 63
Italy, 61–63
Kindleberger–Minsky model, 90
Laeven, L., 85
Lending margin, 127
Liabilities side currency risk, 99
Liquidity risks, 8
Local shocks, 111
Londono, J. M., 34
Long-term capital management (LTCM), 86
LTCM. See Long-term capital management (LTCM)
Machine learning, 77
Macroeconomic liquidity risk, 111
Macroeconomic models, 104–105
Madouros, V., 9
The Magyar Nemzeti Bank, 17–18
Market freezes, 88–89
Mauritius, 10, 63–64
Mester, L. J., 4
Metrics of financial system, 48–52
Mislang, N., 34
Monetary stability, 44–45
Money markets, 14
Moore’s Law, 27
Moral hazard problem, 94
Mortgage-backed securities, 118
Muñoz, S., 35
National Bank of Georgia (NBG), 16–17
National Bureau of Economic Research, 101
National Financial Inclusion Framework (NFIF), 65
NBG. See National Bank of Georgia (NBG)
Nepal Rastra Bank, 20
Net interest income, 127
NFIF. See National Financial Inclusion Framework (NFIF)
Ng, T., 33
Non-bank financial institutions, 58–59
Non-credible exchange rate mechanism, 18
Non-regulatory approach, 9
OeNB. See Oesterreichische Nationalbank (OeNB)
Oesterreichische Nationalbank (OeNB), 18
Off-balance sheets, 50
1973 Oil crisis, 86
On-balance hike, 50
Operating lease, 128
Peer-to-peer (P2P) lending platforms, 79
Personal loans, 79
Political economy, 31
Ponzi scheme, 90
Primary surplus/deficit, 127
Private equity, 6
Prompt action, 81
Prudential Regulation Authority, 19
Public sector, 57
Rapid liberalisation of financial sector, 18
Real estate sector, 59
Regulatory Affairs of Institute of International Finance, 74
Regulatory capital, 8
Reinhart, C., 28, 30
Repo transaction, 127
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
Resilient financial system, 16
Robo-advisors, 79
Rogoff, K., 28
Rule-based approach, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
ABCP. See Asset-Backed Commercial Paper (ABCP)
Acharya, V.
, 84, 85
Adverse selection
, 88–89
AI. See Artificial intelligence (AI)
API. See Application Program Interface (API)
Application Program Interface (API)
, 77
Article IV consultations
, 38
Artificial intelligence (AI)
, 77
Asian financial crisis (1997–1998)
, 86
Asset-Backed Commercial Paper (ABCP)
, 85
Asset-backed securities, working mechanism of
, 117
Asset price bubbles
, 89–92
Azerbaijan
, 59
Balance of payments crisis
, 101
Bangladesh
, 60
Banking crises
causes of
, 94–96
costs of
, 96
Banking sector
, 56–57
Bank managers
, 4
Bank of Albania
, 21–24
Bank of Canada
, 20–21
Bank of England
, 19
The Bank of Greece
, 18
‘Bankruptcy remote’
, 119
Banque de France
, 18
Barnett, W. A.
, 105
Basel Committee on Banking Supervision (BCBS)
, 25
BCBS. See Basel Committee on Banking Supervision (BCBS)
Behavioural finance
, 101–102
Beltratti, A.
, 6
Big Data analytics
, 74
Binary metrics of financial stability
, 53
Biometrics
, 78
Bitcoins
, 75–80
1987 Black Monday
, 86
Boer, M.
, 75
Bond valuation methods
, 2
Boom/bust analysis of markets
, 91
Bordo, M.
, 97
Born, B.
, 34
Brennan, S.
, 9
Bretton Woods global system
, 97
Broz, J. L.
, 31
Business loans
, 79
Capital, defined, 8
Capital markets, 14
Capital structure of firms, 2
Caprio, G., 31
CBOs. See Collateralised Bond Obligation (CBOs)
CDOs. See Collateralised Debt Obligations (CDOs)
CDS. See Credit default swaps (CDS)
Central Bank of Armenia, 19
Central Bank of Bahrain, 17
Central Bank of Germany, 21
Central Bank of Iceland, 19
Central Bank of Namibia, 20
The Central Bank of Nepal, 20
The Central Bank of Swaziland, 17
Central Bank of the Kingdom of Denmark, 15
Central Bank of the Republic of Austria, 18
Central Bank of the Republic of Hungary, 17–18
Central banks’ required reserve ratios, 121–123
Christensson, J., 34
CLOs. See Collateralised Loan Obligation (CLOs)
Cloud computing, 74
CMOs. See Collateralised Mortgage Obligations (CMOs)
Collateralised Bond Obligation (CBOs), 117
Collateralised Debt Obligations (CDOs), 117
Collateralised Loan Obligation (CLOs), 117
Collateralised Mortgage Obligations (CMOs), 117
Commercial banks, 85
Commodities investment, 6
Commodity markets, 14
Continuous metrics of financial stability, 53
Core capital, 8
Corporate sector, 57–58, 66
Correa, R., 34
Credit crunch, 127
Credit default swaps (CDS), 35
Credit frictions, 88–89
Credit provision, 6
Crowdfunding platforms, 79
Cryptocurrencies, 76, 80
Cryptography, 78
Cukierman, A., 36
Currency crises, 96–100
Cyberattacks, 75
Cyber-security, 75
Danmarks Nationalbank, 15
Debt crisis, 102
Degree of short terminism, 50
Denmark, 60–61
Deposit insurance, 94
Deposit margin, 127
Derivatives markets, 14, 27
The Deutsche Bundesbank, 21
Diamond, D. W., 52
Digital-based crises, 106
Digital payments, 79
Discredited theory, 4–5
Distributed ledger technology (DLT), 77–78
DLT. See Distributed ledger technology (DLT)
Domestic debt crises, 102
Dot-com bubble, 87
DSGE models. See Dynamic Stochastic General Equilibrium (DSGE) models
Dynamic Stochastic General Equilibrium (DSGE) models, 11
‘Dysfunctional finance’, 9
ECB. See European Central Bank (ECB)
ECF. See Extended Credit Facility (ECF)
ECH. See Electronic clearing house (ECH)
Efficient market hypothesis, 101
Ehrmann, M., 34
Eichengreen, B., 97
Electronic clearing house (ECH), 64
Elson, A., 101
E-money, 79
ETFs. See Exchange Traded Funds (ETFs)
European Central Bank (ECB), 15–16
European Systemic Risk Board Recommendation, 100
Eurosystem, 62
Exchange Traded Funds (ETFs), 127
Extended Credit Facility (ECF), 60
External debt crisis, 102
FDI. See Foreign Direct Investment (FDI)
The Federal Reserve Bank in US, 20
FIFIM. See Financial Intermediation Services Indirectly Measured (FIFIM)
Fijian financial system, 21
Finance
defined, 1–2
discredited theory in, 4–5
features in, 3–4
great recession, 8
illusionary contribution of, 9–10
insolvency risk versus illiquidity risk, 8
misinterpreted role of, 10–11
provision of goods and services, 3
self-interest of bank managers, 4
shortcomings embedded in, 5–7
solutions to identified shortcomings, 7–8
Financial crises
costs of, 106–107
effects of, 87
features of, 87–88
management, 105
theories of
asset price bubbles, 89–92
balance of payments crisis, 101
banking crises, 92–94
behavioural finance, 101–102
credit frictions and market freezes, 88–89
currency crises, 96–100
debt crisis, 102
failures of existing theories, 104–105
systemic liquidity crises, 103
with trend shifting to digital currencies, 105–106
types of, 85–87
Financial Crisis Inquiry Commission, 73
Financial instability, 16, 30
Financial Intermediation Services Indirectly Measured (FIFIM), 50
Financial lease, 128
Financial Policy Committee, 19
Financial Sector Assessment Programme (FSAP), 36–42
Financial Soundness Indicators (FSIs), 38
Financial stability
analyst, 53
defined by different institutions worldwide
Bank of Albania, 21–24
Bank of Canada, 20–21
Bank of England, 19
The Bank of Greece, 18
Banque de France, 18
Central Bank of Armenia, 19
Central Bank of Bahrain, 17
Central Bank of Iceland, 19
Central Bank of Namibia, 20
The Central Bank of Swaziland, 17
Central Bank of the Kingdom of Denmark, 15
The Deutsche Bundesbank – Central Bank of Germany, 21
European Central Bank, 15–16
The Federal Reserve Bank in US, 20
The Magyar Nemzeti Bank – Central Bank of the Republic of Hungary, 17–18
National Bank of Georgia, 16–17
Nepal Rastra Bank – The Central Bank of Nepal, 20
The Oesterreichische Nationalbank (OeNB) – Central Bank of the Republic of Austria, 18
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
dynamic issue, 28
predictability/resilience, 28
risks, 28, 55–66
Financial Stability Board (FSB), 42, 71–80
Financial Stability Reports (FSRs), 33–36
Financial system, 27–28
metrics of, 48–52
FinTech, 71–81
Foreign debt crisis, 102
Foreign Direct Investment (FDI), 102
Foreign exchange markets, 14
Fratzscher, M., 34
Frieden, J. A., 31
FSAP. See Financial Sector Assessment Programme (FSAP)
FSB. See Financial Stability Board (FSB)
FSIs. See Financial Soundness Indicators (FSIs)
FSRs. see Financial Stability Reports (FSRs)
‘The Future of Finance’, 6
Garud, K., 34
GFSR. See Global Financial Stability Report (GFSR)
Glass-Steagall Banking Act of, 1933, 111
Global Financial Stability Report (GFSR), 43–44
Global shocks, 101
Goodhart, C., 8, 106
Gorton, G., 84
Great depression, 8
Great recession, 8–9
Gujarati, D., 21
Haggard, S., 31
Haldane, A., 9, 27, 84
Healthy financial system, 19
Household sector, 58
Hughes, J. P., 4
IMF. See International Monetary Fund (IMF)
Inadequate economic policy, 18
Inefficient resource allocation, 18
Information asymmetry, 2
Institute of International Finance, 71
International Monetary Fund (IMF), 9
global financial stability report, 43–44
International remittances, 79
Internet of Things (IoT), 77
Intertemporal dimensions, 2
IoT. See Internet of Things (IoT)
Italian Banking Association, 63
Italy, 61–63
Kindleberger–Minsky model, 90
Laeven, L., 85
Lending margin, 127
Liabilities side currency risk, 99
Liquidity risks, 8
Local shocks, 111
Londono, J. M., 34
Long-term capital management (LTCM), 86
LTCM. See Long-term capital management (LTCM)
Machine learning, 77
Macroeconomic liquidity risk, 111
Macroeconomic models, 104–105
Madouros, V., 9
The Magyar Nemzeti Bank, 17–18
Market freezes, 88–89
Mauritius, 10, 63–64
Mester, L. J., 4
Metrics of financial system, 48–52
Mislang, N., 34
Monetary stability, 44–45
Money markets, 14
Moore’s Law, 27
Moral hazard problem, 94
Mortgage-backed securities, 118
Muñoz, S., 35
National Bank of Georgia (NBG), 16–17
National Bureau of Economic Research, 101
National Financial Inclusion Framework (NFIF), 65
NBG. See National Bank of Georgia (NBG)
Nepal Rastra Bank, 20
Net interest income, 127
NFIF. See National Financial Inclusion Framework (NFIF)
Ng, T., 33
Non-bank financial institutions, 58–59
Non-credible exchange rate mechanism, 18
Non-regulatory approach, 9
OeNB. See Oesterreichische Nationalbank (OeNB)
Oesterreichische Nationalbank (OeNB), 18
Off-balance sheets, 50
1973 Oil crisis, 86
On-balance hike, 50
Operating lease, 128
Peer-to-peer (P2P) lending platforms, 79
Personal loans, 79
Political economy, 31
Ponzi scheme, 90
Primary surplus/deficit, 127
Private equity, 6
Prompt action, 81
Prudential Regulation Authority, 19
Public sector, 57
Rapid liberalisation of financial sector, 18
Real estate sector, 59
Regulatory Affairs of Institute of International Finance, 74
Regulatory capital, 8
Reinhart, C., 28, 30
Repo transaction, 127
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
Resilient financial system, 16
Robo-advisors, 79
Rogoff, K., 28
Rule-based approach, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
Capital, defined
, 8
Capital markets
, 14
Capital structure of firms
, 2
Caprio, G.
, 31
CBOs. See Collateralised Bond Obligation (CBOs)
CDOs. See Collateralised Debt Obligations (CDOs)
CDS. See Credit default swaps (CDS)
Central Bank of Armenia
, 19
Central Bank of Bahrain
, 17
Central Bank of Germany
, 21
Central Bank of Iceland
, 19
Central Bank of Namibia
, 20
The Central Bank of Nepal
, 20
The Central Bank of Swaziland
, 17
Central Bank of the Kingdom of Denmark
, 15
Central Bank of the Republic of Austria
, 18
Central Bank of the Republic of Hungary
, 17–18
Central banks’ required reserve ratios
, 121–123
Christensson, J.
, 34
CLOs. See Collateralised Loan Obligation (CLOs)
Cloud computing
, 74
CMOs. See Collateralised Mortgage Obligations (CMOs)
Collateralised Bond Obligation (CBOs)
, 117
Collateralised Debt Obligations (CDOs)
, 117
Collateralised Loan Obligation (CLOs)
, 117
Collateralised Mortgage Obligations (CMOs)
, 117
Commercial banks
, 85
Commodities investment
, 6
Commodity markets
, 14
Continuous metrics of financial stability
, 53
Core capital
, 8
Corporate sector
, 57–58, 66
Correa, R.
, 34
Credit crunch
, 127
Credit default swaps (CDS)
, 35
Credit frictions
, 88–89
Credit provision
, 6
Crowdfunding platforms
, 79
Cryptocurrencies
, 76, 80
Cryptography
, 78
Cukierman, A.
, 36
Currency crises
, 96–100
Cyberattacks
, 75
Cyber-security
, 75
Danmarks Nationalbank
, 15
Debt crisis
, 102
Degree of short terminism
, 50
Denmark
, 60–61
Deposit insurance
, 94
Deposit margin
, 127
Derivatives markets
, 14, 27
The Deutsche Bundesbank
, 21
Diamond, D. W.
, 52
Digital-based crises
, 106
Digital payments
, 79
Discredited theory
, 4–5
Distributed ledger technology (DLT)
, 77–78
DLT. See Distributed ledger technology (DLT)
Domestic debt crises
, 102
Dot-com bubble
, 87
DSGE models. See Dynamic Stochastic General Equilibrium (DSGE) models
Dynamic Stochastic General Equilibrium (DSGE) models
, 11
‘Dysfunctional finance’
, 9
ECB. See European Central Bank (ECB)
ECF. See Extended Credit Facility (ECF)
ECH. See Electronic clearing house (ECH)
Efficient market hypothesis, 101
Ehrmann, M., 34
Eichengreen, B., 97
Electronic clearing house (ECH), 64
Elson, A., 101
E-money, 79
ETFs. See Exchange Traded Funds (ETFs)
European Central Bank (ECB), 15–16
European Systemic Risk Board Recommendation, 100
Eurosystem, 62
Exchange Traded Funds (ETFs), 127
Extended Credit Facility (ECF), 60
External debt crisis, 102
FDI. See Foreign Direct Investment (FDI)
The Federal Reserve Bank in US, 20
FIFIM. See Financial Intermediation Services Indirectly Measured (FIFIM)
Fijian financial system, 21
Finance
defined, 1–2
discredited theory in, 4–5
features in, 3–4
great recession, 8
illusionary contribution of, 9–10
insolvency risk versus illiquidity risk, 8
misinterpreted role of, 10–11
provision of goods and services, 3
self-interest of bank managers, 4
shortcomings embedded in, 5–7
solutions to identified shortcomings, 7–8
Financial crises
costs of, 106–107
effects of, 87
features of, 87–88
management, 105
theories of
asset price bubbles, 89–92
balance of payments crisis, 101
banking crises, 92–94
behavioural finance, 101–102
credit frictions and market freezes, 88–89
currency crises, 96–100
debt crisis, 102
failures of existing theories, 104–105
systemic liquidity crises, 103
with trend shifting to digital currencies, 105–106
types of, 85–87
Financial Crisis Inquiry Commission, 73
Financial instability, 16, 30
Financial Intermediation Services Indirectly Measured (FIFIM), 50
Financial lease, 128
Financial Policy Committee, 19
Financial Sector Assessment Programme (FSAP), 36–42
Financial Soundness Indicators (FSIs), 38
Financial stability
analyst, 53
defined by different institutions worldwide
Bank of Albania, 21–24
Bank of Canada, 20–21
Bank of England, 19
The Bank of Greece, 18
Banque de France, 18
Central Bank of Armenia, 19
Central Bank of Bahrain, 17
Central Bank of Iceland, 19
Central Bank of Namibia, 20
The Central Bank of Swaziland, 17
Central Bank of the Kingdom of Denmark, 15
The Deutsche Bundesbank – Central Bank of Germany, 21
European Central Bank, 15–16
The Federal Reserve Bank in US, 20
The Magyar Nemzeti Bank – Central Bank of the Republic of Hungary, 17–18
National Bank of Georgia, 16–17
Nepal Rastra Bank – The Central Bank of Nepal, 20
The Oesterreichische Nationalbank (OeNB) – Central Bank of the Republic of Austria, 18
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
dynamic issue, 28
predictability/resilience, 28
risks, 28, 55–66
Financial Stability Board (FSB), 42, 71–80
Financial Stability Reports (FSRs), 33–36
Financial system, 27–28
metrics of, 48–52
FinTech, 71–81
Foreign debt crisis, 102
Foreign Direct Investment (FDI), 102
Foreign exchange markets, 14
Fratzscher, M., 34
Frieden, J. A., 31
FSAP. See Financial Sector Assessment Programme (FSAP)
FSB. See Financial Stability Board (FSB)
FSIs. See Financial Soundness Indicators (FSIs)
FSRs. see Financial Stability Reports (FSRs)
‘The Future of Finance’, 6
Garud, K., 34
GFSR. See Global Financial Stability Report (GFSR)
Glass-Steagall Banking Act of, 1933, 111
Global Financial Stability Report (GFSR), 43–44
Global shocks, 101
Goodhart, C., 8, 106
Gorton, G., 84
Great depression, 8
Great recession, 8–9
Gujarati, D., 21
Haggard, S., 31
Haldane, A., 9, 27, 84
Healthy financial system, 19
Household sector, 58
Hughes, J. P., 4
IMF. See International Monetary Fund (IMF)
Inadequate economic policy, 18
Inefficient resource allocation, 18
Information asymmetry, 2
Institute of International Finance, 71
International Monetary Fund (IMF), 9
global financial stability report, 43–44
International remittances, 79
Internet of Things (IoT), 77
Intertemporal dimensions, 2
IoT. See Internet of Things (IoT)
Italian Banking Association, 63
Italy, 61–63
Kindleberger–Minsky model, 90
Laeven, L., 85
Lending margin, 127
Liabilities side currency risk, 99
Liquidity risks, 8
Local shocks, 111
Londono, J. M., 34
Long-term capital management (LTCM), 86
LTCM. See Long-term capital management (LTCM)
Machine learning, 77
Macroeconomic liquidity risk, 111
Macroeconomic models, 104–105
Madouros, V., 9
The Magyar Nemzeti Bank, 17–18
Market freezes, 88–89
Mauritius, 10, 63–64
Mester, L. J., 4
Metrics of financial system, 48–52
Mislang, N., 34
Monetary stability, 44–45
Money markets, 14
Moore’s Law, 27
Moral hazard problem, 94
Mortgage-backed securities, 118
Muñoz, S., 35
National Bank of Georgia (NBG), 16–17
National Bureau of Economic Research, 101
National Financial Inclusion Framework (NFIF), 65
NBG. See National Bank of Georgia (NBG)
Nepal Rastra Bank, 20
Net interest income, 127
NFIF. See National Financial Inclusion Framework (NFIF)
Ng, T., 33
Non-bank financial institutions, 58–59
Non-credible exchange rate mechanism, 18
Non-regulatory approach, 9
OeNB. See Oesterreichische Nationalbank (OeNB)
Oesterreichische Nationalbank (OeNB), 18
Off-balance sheets, 50
1973 Oil crisis, 86
On-balance hike, 50
Operating lease, 128
Peer-to-peer (P2P) lending platforms, 79
Personal loans, 79
Political economy, 31
Ponzi scheme, 90
Primary surplus/deficit, 127
Private equity, 6
Prompt action, 81
Prudential Regulation Authority, 19
Public sector, 57
Rapid liberalisation of financial sector, 18
Real estate sector, 59
Regulatory Affairs of Institute of International Finance, 74
Regulatory capital, 8
Reinhart, C., 28, 30
Repo transaction, 127
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
Resilient financial system, 16
Robo-advisors, 79
Rogoff, K., 28
Rule-based approach, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
ECB. See European Central Bank (ECB)
ECF. See Extended Credit Facility (ECF)
ECH. See Electronic clearing house (ECH)
Efficient market hypothesis
, 101
Ehrmann, M.
, 34
Eichengreen, B.
, 97
Electronic clearing house (ECH)
, 64
Elson, A.
, 101
E-money
, 79
ETFs. See Exchange Traded Funds (ETFs)
European Central Bank (ECB)
, 15–16
European Systemic Risk Board Recommendation
, 100
Eurosystem
, 62
Exchange Traded Funds (ETFs)
, 127
Extended Credit Facility (ECF)
, 60
External debt crisis
, 102
FDI. See Foreign Direct Investment (FDI)
The Federal Reserve Bank in US
, 20
FIFIM. See Financial Intermediation Services Indirectly Measured (FIFIM)
Fijian financial system
, 21
Finance
defined
, 1–2
discredited theory in
, 4–5
features in
, 3–4
great recession
, 8
illusionary contribution of
, 9–10
insolvency risk versus illiquidity risk
, 8
misinterpreted role of
, 10–11
provision of goods and services
, 3
self-interest of bank managers
, 4
shortcomings embedded in
, 5–7
solutions to identified shortcomings
, 7–8
Financial crises
costs of
, 106–107
effects of
, 87
features of
, 87–88
management
, 105
theories of
asset price bubbles
, 89–92
balance of payments crisis
, 101
banking crises
, 92–94
behavioural finance
, 101–102
credit frictions and market freezes
, 88–89
currency crises
, 96–100
debt crisis
, 102
failures of existing theories
, 104–105
systemic liquidity crises
, 103
with trend shifting to digital currencies
, 105–106
types of
, 85–87
Financial Crisis Inquiry Commission
, 73
Financial instability
, 16, 30
Financial Intermediation Services Indirectly Measured (FIFIM)
, 50
Financial lease
, 128
Financial Policy Committee
, 19
Financial Sector Assessment Programme (FSAP)
, 36–42
Financial Soundness Indicators (FSIs)
, 38
Financial stability
analyst
, 53
defined by different institutions worldwide
Bank of Albania
, 21–24
Bank of Canada
, 20–21
Bank of England
, 19
The Bank of Greece
, 18
Banque de France
, 18
Central Bank of Armenia
, 19
Central Bank of Bahrain
, 17
Central Bank of Iceland
, 19
Central Bank of Namibia
, 20
The Central Bank of Swaziland
, 17
Central Bank of the Kingdom of Denmark
, 15
The Deutsche Bundesbank – Central Bank of Germany
, 21
European Central Bank
, 15–16
The Federal Reserve Bank in US
, 20
The Magyar Nemzeti Bank – Central Bank of the Republic of Hungary
, 17–18
National Bank of Georgia
, 16–17
Nepal Rastra Bank – The Central Bank of Nepal
, 20
The Oesterreichische Nationalbank (OeNB) – Central Bank of the Republic of Austria
, 18
Reserve Bank of Australia
, 16
Reserve Bank of Fiji
, 21
dynamic issue
, 28
predictability/resilience
, 28
risks
, 28, 55–66
Financial Stability Board (FSB)
, 42, 71–80
Financial Stability Reports (FSRs)
, 33–36
Financial system
, 27–28
metrics of
, 48–52
FinTech
, 71–81
Foreign debt crisis
, 102
Foreign Direct Investment (FDI)
, 102
Foreign exchange markets
, 14
Fratzscher, M.
, 34
Frieden, J. A.
, 31
FSAP. See Financial Sector Assessment Programme (FSAP)
FSB. See Financial Stability Board (FSB)
FSIs. See Financial Soundness Indicators (FSIs)
FSRs. see Financial Stability Reports (FSRs)
‘The Future of Finance’
, 6
Garud, K., 34
GFSR. See Global Financial Stability Report (GFSR)
Glass-Steagall Banking Act of, 1933, 111
Global Financial Stability Report (GFSR), 43–44
Global shocks, 101
Goodhart, C., 8, 106
Gorton, G., 84
Great depression, 8
Great recession, 8–9
Gujarati, D., 21
Haggard, S., 31
Haldane, A., 9, 27, 84
Healthy financial system, 19
Household sector, 58
Hughes, J. P., 4
IMF. See International Monetary Fund (IMF)
Inadequate economic policy, 18
Inefficient resource allocation, 18
Information asymmetry, 2
Institute of International Finance, 71
International Monetary Fund (IMF), 9
global financial stability report, 43–44
International remittances, 79
Internet of Things (IoT), 77
Intertemporal dimensions, 2
IoT. See Internet of Things (IoT)
Italian Banking Association, 63
Italy, 61–63
Kindleberger–Minsky model, 90
Laeven, L., 85
Lending margin, 127
Liabilities side currency risk, 99
Liquidity risks, 8
Local shocks, 111
Londono, J. M., 34
Long-term capital management (LTCM), 86
LTCM. See Long-term capital management (LTCM)
Machine learning, 77
Macroeconomic liquidity risk, 111
Macroeconomic models, 104–105
Madouros, V., 9
The Magyar Nemzeti Bank, 17–18
Market freezes, 88–89
Mauritius, 10, 63–64
Mester, L. J., 4
Metrics of financial system, 48–52
Mislang, N., 34
Monetary stability, 44–45
Money markets, 14
Moore’s Law, 27
Moral hazard problem, 94
Mortgage-backed securities, 118
Muñoz, S., 35
National Bank of Georgia (NBG), 16–17
National Bureau of Economic Research, 101
National Financial Inclusion Framework (NFIF), 65
NBG. See National Bank of Georgia (NBG)
Nepal Rastra Bank, 20
Net interest income, 127
NFIF. See National Financial Inclusion Framework (NFIF)
Ng, T., 33
Non-bank financial institutions, 58–59
Non-credible exchange rate mechanism, 18
Non-regulatory approach, 9
OeNB. See Oesterreichische Nationalbank (OeNB)
Oesterreichische Nationalbank (OeNB), 18
Off-balance sheets, 50
1973 Oil crisis, 86
On-balance hike, 50
Operating lease, 128
Peer-to-peer (P2P) lending platforms, 79
Personal loans, 79
Political economy, 31
Ponzi scheme, 90
Primary surplus/deficit, 127
Private equity, 6
Prompt action, 81
Prudential Regulation Authority, 19
Public sector, 57
Rapid liberalisation of financial sector, 18
Real estate sector, 59
Regulatory Affairs of Institute of International Finance, 74
Regulatory capital, 8
Reinhart, C., 28, 30
Repo transaction, 127
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
Resilient financial system, 16
Robo-advisors, 79
Rogoff, K., 28
Rule-based approach, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
Garud, K.
, 34
GFSR. See Global Financial Stability Report (GFSR)
Glass-Steagall Banking Act of
, 1933, 111
Global Financial Stability Report (GFSR)
, 43–44
Global shocks
, 101
Goodhart, C.
, 8, 106
Gorton, G.
, 84
Great depression
, 8
Great recession
, 8–9
Gujarati, D.
, 21
Haggard, S.
, 31
Haldane, A.
, 9, 27, 84
Healthy financial system
, 19
Household sector
, 58
Hughes, J. P.
, 4
IMF. See International Monetary Fund (IMF)
Inadequate economic policy, 18
Inefficient resource allocation, 18
Information asymmetry, 2
Institute of International Finance, 71
International Monetary Fund (IMF), 9
global financial stability report, 43–44
International remittances, 79
Internet of Things (IoT), 77
Intertemporal dimensions, 2
IoT. See Internet of Things (IoT)
Italian Banking Association, 63
Italy, 61–63
Kindleberger–Minsky model, 90
Laeven, L., 85
Lending margin, 127
Liabilities side currency risk, 99
Liquidity risks, 8
Local shocks, 111
Londono, J. M., 34
Long-term capital management (LTCM), 86
LTCM. See Long-term capital management (LTCM)
Machine learning, 77
Macroeconomic liquidity risk, 111
Macroeconomic models, 104–105
Madouros, V., 9
The Magyar Nemzeti Bank, 17–18
Market freezes, 88–89
Mauritius, 10, 63–64
Mester, L. J., 4
Metrics of financial system, 48–52
Mislang, N., 34
Monetary stability, 44–45
Money markets, 14
Moore’s Law, 27
Moral hazard problem, 94
Mortgage-backed securities, 118
Muñoz, S., 35
National Bank of Georgia (NBG), 16–17
National Bureau of Economic Research, 101
National Financial Inclusion Framework (NFIF), 65
NBG. See National Bank of Georgia (NBG)
Nepal Rastra Bank, 20
Net interest income, 127
NFIF. See National Financial Inclusion Framework (NFIF)
Ng, T., 33
Non-bank financial institutions, 58–59
Non-credible exchange rate mechanism, 18
Non-regulatory approach, 9
OeNB. See Oesterreichische Nationalbank (OeNB)
Oesterreichische Nationalbank (OeNB), 18
Off-balance sheets, 50
1973 Oil crisis, 86
On-balance hike, 50
Operating lease, 128
Peer-to-peer (P2P) lending platforms, 79
Personal loans, 79
Political economy, 31
Ponzi scheme, 90
Primary surplus/deficit, 127
Private equity, 6
Prompt action, 81
Prudential Regulation Authority, 19
Public sector, 57
Rapid liberalisation of financial sector, 18
Real estate sector, 59
Regulatory Affairs of Institute of International Finance, 74
Regulatory capital, 8
Reinhart, C., 28, 30
Repo transaction, 127
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
Resilient financial system, 16
Robo-advisors, 79
Rogoff, K., 28
Rule-based approach, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
IMF. See International Monetary Fund (IMF)
Inadequate economic policy
, 18
Inefficient resource allocation
, 18
Information asymmetry
, 2
Institute of International Finance
, 71
International Monetary Fund (IMF)
, 9
global financial stability report
, 43–44
International remittances
, 79
Internet of Things (IoT)
, 77
Intertemporal dimensions
, 2
IoT. See Internet of Things (IoT)
Italian Banking Association
, 63
Italy
, 61–63
Kindleberger–Minsky model
, 90
Laeven, L., 85
Lending margin, 127
Liabilities side currency risk, 99
Liquidity risks, 8
Local shocks, 111
Londono, J. M., 34
Long-term capital management (LTCM), 86
LTCM. See Long-term capital management (LTCM)
Machine learning, 77
Macroeconomic liquidity risk, 111
Macroeconomic models, 104–105
Madouros, V., 9
The Magyar Nemzeti Bank, 17–18
Market freezes, 88–89
Mauritius, 10, 63–64
Mester, L. J., 4
Metrics of financial system, 48–52
Mislang, N., 34
Monetary stability, 44–45
Money markets, 14
Moore’s Law, 27
Moral hazard problem, 94
Mortgage-backed securities, 118
Muñoz, S., 35
National Bank of Georgia (NBG), 16–17
National Bureau of Economic Research, 101
National Financial Inclusion Framework (NFIF), 65
NBG. See National Bank of Georgia (NBG)
Nepal Rastra Bank, 20
Net interest income, 127
NFIF. See National Financial Inclusion Framework (NFIF)
Ng, T., 33
Non-bank financial institutions, 58–59
Non-credible exchange rate mechanism, 18
Non-regulatory approach, 9
OeNB. See Oesterreichische Nationalbank (OeNB)
Oesterreichische Nationalbank (OeNB), 18
Off-balance sheets, 50
1973 Oil crisis, 86
On-balance hike, 50
Operating lease, 128
Peer-to-peer (P2P) lending platforms, 79
Personal loans, 79
Political economy, 31
Ponzi scheme, 90
Primary surplus/deficit, 127
Private equity, 6
Prompt action, 81
Prudential Regulation Authority, 19
Public sector, 57
Rapid liberalisation of financial sector, 18
Real estate sector, 59
Regulatory Affairs of Institute of International Finance, 74
Regulatory capital, 8
Reinhart, C., 28, 30
Repo transaction, 127
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
Resilient financial system, 16
Robo-advisors, 79
Rogoff, K., 28
Rule-based approach, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
Laeven, L.
, 85
Lending margin
, 127
Liabilities side currency risk
, 99
Liquidity risks
, 8
Local shocks
, 111
Londono, J. M.
, 34
Long-term capital management (LTCM)
, 86
LTCM. See Long-term capital management (LTCM)
Machine learning
, 77
Macroeconomic liquidity risk
, 111
Macroeconomic models
, 104–105
Madouros, V.
, 9
The Magyar Nemzeti Bank
, 17–18
Market freezes
, 88–89
Mauritius
, 10, 63–64
Mester, L. J.
, 4
Metrics of financial system
, 48–52
Mislang, N.
, 34
Monetary stability
, 44–45
Money markets
, 14
Moore’s Law
, 27
Moral hazard problem
, 94
Mortgage-backed securities
, 118
Muñoz, S.
, 35
National Bank of Georgia (NBG), 16–17
National Bureau of Economic Research, 101
National Financial Inclusion Framework (NFIF), 65
NBG. See National Bank of Georgia (NBG)
Nepal Rastra Bank, 20
Net interest income, 127
NFIF. See National Financial Inclusion Framework (NFIF)
Ng, T., 33
Non-bank financial institutions, 58–59
Non-credible exchange rate mechanism, 18
Non-regulatory approach, 9
OeNB. See Oesterreichische Nationalbank (OeNB)
Oesterreichische Nationalbank (OeNB), 18
Off-balance sheets, 50
1973 Oil crisis, 86
On-balance hike, 50
Operating lease, 128
Peer-to-peer (P2P) lending platforms, 79
Personal loans, 79
Political economy, 31
Ponzi scheme, 90
Primary surplus/deficit, 127
Private equity, 6
Prompt action, 81
Prudential Regulation Authority, 19
Public sector, 57
Rapid liberalisation of financial sector, 18
Real estate sector, 59
Regulatory Affairs of Institute of International Finance, 74
Regulatory capital, 8
Reinhart, C., 28, 30
Repo transaction, 127
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
Resilient financial system, 16
Robo-advisors, 79
Rogoff, K., 28
Rule-based approach, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
National Bank of Georgia (NBG)
, 16–17
National Bureau of Economic Research
, 101
National Financial Inclusion Framework (NFIF)
, 65
NBG. See National Bank of Georgia (NBG)
Nepal Rastra Bank
, 20
Net interest income
, 127
NFIF. See National Financial Inclusion Framework (NFIF)
Ng, T.
, 33
Non-bank financial institutions
, 58–59
Non-credible exchange rate mechanism
, 18
Non-regulatory approach
, 9
OeNB. See Oesterreichische Nationalbank (OeNB)
Oesterreichische Nationalbank (OeNB)
, 18
Off-balance sheets
, 50
1973 Oil crisis
, 86
On-balance hike
, 50
Operating lease
, 128
Peer-to-peer (P2P) lending platforms, 79
Personal loans, 79
Political economy, 31
Ponzi scheme, 90
Primary surplus/deficit, 127
Private equity, 6
Prompt action, 81
Prudential Regulation Authority, 19
Public sector, 57
Rapid liberalisation of financial sector, 18
Real estate sector, 59
Regulatory Affairs of Institute of International Finance, 74
Regulatory capital, 8
Reinhart, C., 28, 30
Repo transaction, 127
Reserve Bank of Australia, 16
Reserve Bank of Fiji, 21
Resilient financial system, 16
Robo-advisors, 79
Rogoff, K., 28
Rule-based approach, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
Peer-to-peer (P2P) lending platforms
, 79
Personal loans
, 79
Political economy
, 31
Ponzi scheme
, 90
Primary surplus/deficit
, 127
Private equity
, 6
Prompt action
, 81
Prudential Regulation Authority
, 19
Public sector
, 57
Rapid liberalisation of financial sector
, 18
Real estate sector
, 59
Regulatory Affairs of Institute of International Finance
, 74
Regulatory capital
, 8
Reinhart, C.
, 28, 30
Repo transaction
, 127
Reserve Bank of Australia
, 16
Reserve Bank of Fiji
, 21
Resilient financial system
, 16
Robo-advisors
, 79
Rogoff, K.
, 28
Rule-based approach
, 104
Saunders, A., 4
Schoenmaker, D., 29, 34
Second-generation model of currency crises, 99
Securitisation, 3, 27
Sharifuddin, S. T., 35
Sharpe index, 128
Single driving force, 2
Slovenian economy, 55–56
Slovenian household sector, 58
Smart contracts, 78
Smooth-functioning financial system, 15
Solow, R., 104
Special purpose vehicle, 119
Spong, K., 34
Stable financial system, 15, 16
‘Stockholder controlled’ banks, 4
Stress testing, 80
Strock, E., 4
Stulz, R. M., 6
Supplementary capital, 8
Svensson, L. E. O., 35
Sveriges Riksbank, 35
Sweden, 65–66
Swedish banking system, 65
Syndicated loans, 127
Systemic liquidity crises, 103
Tanzania, 64–65
Tanzania Interbank Settlement System (TISS), 64
Third generation of crisis models, 99–100
Tier 1 capital, 8
Tier 2 capital, 8
Tintchev, K., 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach, 119
Transmission mechanism of monetary policy, 45
Travlos, N., 4
Trichet, J-C., 104–105
Tsomocos, D., 106
Turner, A., 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
Saunders, A.
, 4
Schoenmaker, D.
, 29, 34
Second-generation model of currency crises
, 99
Securitisation
, 3, 27
Sharifuddin, S. T.
, 35
Sharpe index
, 128
Single driving force
, 2
Slovenian economy
, 55–56
Slovenian household sector
, 58
Smart contracts
, 78
Smooth-functioning financial system
, 15
Solow, R.
, 104
Special purpose vehicle
, 119
Spong, K.
, 34
Stable financial system
, 15, 16
‘Stockholder controlled’ banks
, 4
Stress testing
, 80
Strock, E.
, 4
Stulz, R. M.
, 6
Supplementary capital
, 8
Svensson, L. E. O.
, 35
Sveriges Riksbank
, 35
Sweden
, 65–66
Swedish banking system
, 65
Syndicated loans
, 127
Systemic liquidity crises
, 103
Tanzania
, 64–65
Tanzania Interbank Settlement System (TISS)
, 64
Third generation of crisis models
, 99–100
Tier 1 capital
, 8
Tier 2 capital
, 8
Tintchev, K.
, 35
TISS. See Tanzania Interbank Settlement System (TISS)
‘Transfer-enhance-sell’ approach
, 119
Transmission mechanism of monetary policy
, 45
Travlos, N.
, 4
Trichet, J-C.
, 104–105
Tsomocos, D.
, 106
Turner, A.
, 6, 7, 8, 49
UK banking system change (1964–2007), 66–69
Underpriced risks, 10
US subprime crisis of, 2007, 108–113
consequences and implications of, 113–116
Valencia, F., 85
Vayid, I., 33, 34
Vazquez, J., 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
UK banking system change (1964–2007)
, 66–69
Underpriced risks
, 10
US subprime crisis of
, 2007, 108–113
consequences and implications of
, 113–116
Valencia, F.
, 85
Vayid, I.
, 33, 34
Vazquez, J.
, 75, 76
Weak supervision, 18
Wilkinson, J., 34
Woolley, P., 9, 10, 11
Weak supervision
, 18
Wilkinson, J.
, 34
Woolley, P.
, 9, 10, 11
- Prelims
- Chapter 1 Finance, Incentive Structures and the Financial System
- Chapter 2 Concept of Financial Stability Demystified
- Chapter 3 Financial Stability Reports
- Chapter 4 Country Experiences with Respect to Financial Stability
- Chapter 5 FinTech and the Financial Stability Board
- Chapter 6 Financial Crises
- Appendix 1: Working Mechanism of Asset-backed Securities
- Appendix 2: Required Reserve Ratios for Different Central Banks in the World
- Appendix 3: List of Some Important Websites and Databases
- Glossary
- References
- Index