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dc.contributor.advisorKondova, Galia
dc.contributor.authorMunaeva, Luisa
dc.contributor.otherFirma: Bauteilbörse Basel| Kontakt: Jürg Minder| PLZ/ Ort: 4142 Münchenstein
dc.date.accessioned2015-09-02T07:32:08Z
dc.date.available2015-09-02T07:32:08Z
dc.date.issued2013
dc.identifier.urihttp://hdl.handle.net/11654/4698
dc.description.abstractThe global financial crisis followed by the sovereign debt one had a tremendous impact on the euro area financial system and its currency. These developments raised questions as to the future of the euro-area banking sector and the adequateness of the EMU responses. (Beitrag ist nur für FHNW Mitarbeitende sichtbar)
dc.language.isoen_UK
dc.accessRightsAnonymous
dc.subject.ddc330 - Wirtschaft
dc.subject.ddc330 - Wirtschaft
dc.titleThe Economic and Monetary Union and the Global Financial Crisis - The implications of the Global Financial Crisis for the Euro Area Banking Sector
dc.type11 - Studentische Arbeit
dc.audienceSonstige
fhnw.StudentsWorkTypeBachelor
fhnw.publicationStateUnveröffentlicht
fhnw.ReviewTypeKein Peer Review
fhnw.InventedHereYes
fhnw.ConfidentLevelStaff
fhnw.leadThe global financial crisis followed by the sovereign debt one had a tremendous impact on the euro area financial system and its currency. These developments raised questions as to the future of the euro-area banking sector and the adequateness of the EMU responses.
fhnw.initialPositionThe euro-area banking sector suffered enormous losses and severe liquidity crisis due to the global financial crisis. To tackle this issue, the EMU had to take emergency measures. The bank liquidity problems were solved among others by the monetary policy of the EMU through the European Central Bank (ECB) at the supranational level. The bailouts of the insolvent banks were handled by the national governments. The EMU demonstrated a lack of institutions and policy concepts to cope with deep financial crisis.
fhnw.procedureThis paper aims to focus and analyses the implications of the global financial crisis on the euro-area banking sector and the euro currency itself. This work also studies and analyses the root causes of the sovereign crisis and steps taken by the EMU to address the issues. The methodological approach uses the measures of financial performance of the euro- area large banks during 2005 2010. The interpretative methodology uses books, journals, interviews and internet sources to achieve the objectives of the paper.
fhnw.resultsThe results show that the financial crisis has adversely affected the overall banking performance (measured in Return on Equity and Return on Assets, etc.), risk-taking and leverage. Furthermore, lending activities declined substantially, as well as there was a drop in strategic expansions. The main ECB responses to the crises in the Long-Term Refinancing Operations (LTRO) had, to some extent, fulfilled the liquidity needs of the banks in the euro area. However, when compared with the steps taken by the United States Federal Reserve System they were relatively moderate. Moreover, the LTRO allowed the sovereign debt as collateral, thus reinforcing the link between banking and sovereign crises. The weakening of the euro in 2008 seems to have contributed to a reduction in the current account deficits. On the other hand, the fall in the value of euro increased the share of non-performing loans of the euro-area banks that lent in a foreign currency to unhedged borrowers. This study facilitates the better understanding of the effects of the recent crises on the euro area banking sector and the euro currency, as well as the effectiveness of the steps undertaken by the EMU.
fhnw.IsStudentsWorkYes


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