The Role of Securitization Market in the Post-Crisis European Economic Recovery

2016 ◽  
pp. 511-523
Author(s):  
Oxana Karnaukhova ◽  
Inna Nekrasova
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Market Access ◽  
Economic Recovery ◽  
Demand And Supply ◽  
European Economic ◽  
Using Data ◽  
National Economies ◽  
The Eu

European national economies begin to recover, and securitization can play an important role in supporting both monetary and financial stability. In particular, securitization may allow banks to lend without over-committing of the capital and other sources of funding, and thereby to provide indirect market access to borrowers. Otherwise, such borrowers as SME's are not able to tap markets directly. At the same time securitization suffers from stigma, reflecting both its adverse reputation among investors and conservatism among regulators and standard-setters. This is the consequence of misaligned incentives in years prior to the financial crisis, when industry participants became entwined in a self-reinforcing dynamic between demand and supply of securitizations. Using data accessible within the period of 2009-2014, the chapter will input by the analysis of transformation in the securitization market within the post-crisis economic recovery of the EU.

scholarly journals Common Agriculture Police in the EU, direct payments, solvency and income

2020 ◽  
Vol 80 (4) ◽  
pp. 529-547 ◽  
Author(s):  
Emmanuel Mamatzakis ◽  
Christos Staikouras
Keyword(s):  
Financial Crisis ◽  
Value Added ◽  
Economic Recovery ◽  
Content Type ◽  
Recovery Plan ◽  
European Economic ◽  
Direct Payments ◽  
The Impact ◽  
Net Value Added ◽  
The Eu

PurposeCommon Agriculture Police in the EU, direct payments, solvency and incomeDesign/methodology/approachWe employ agriculture data for all twenty-eight EU Member States. The data comes from the public Farm Accountancy Data Network (FADN) of the EU. In terms of methodology we employ panel regression and panel Vector Autoregression analysis (panel VAR) to take into account possible endogeneity issues.FindingsThe reported panel regressions, impulse response functions (IRFs) and variance decompositions (VDCs) show that agriculture income has been subdued due to negative shocks in direct payments and solvency. Our results do not support the hypothesis that higher direct payments would increase agriculture income. In addition, whilst solvency subdues agriculture income, investment asserts a positive impact on agriculture income.Research limitations/implicationsFurther research on the impact of direct payments of CAP on EU agriculture is warranted at a disaggregate level so as to examine whether there is variability in the underlying interlinkages at regional levelPractical implicationsAs a policy implication, and in light of the ongoing reform of the EU's CAP, we would propose to raise net value added in agriculture using targeted income support to small and medium-sized farms. The European Economic Recovery Plan (EERP) would be also supportive. In addition, further enhancing financial integration across the EU would provide funds for investment in agriculture.Social implicationsAs social implication, one would propose to raise investment in agriculture, that is through the European Economic Recovery Plan (EERP). The EERP is designed as a stimulus package set up to mitigate the consequences of the global financial crisis in the EU. Also, a way to boost agriculture income is through the credit channel of the on-going quantitative easing of the ECB, where unconventional monetary policy is aiming to support the growth prospect of the Euro area.Originality/valueThis study examines the impact of direct payments, which include all subsidies, of the EU's Common Agriculture Policy (CAP) on agriculture income as measured by the net value added. We also control for solvency. Despite the magnitude of CAP on the EU budget, few studies investigate the impact of direct payments on income in the aftermath of the financial crisis. This is surprising given the importance of agriculture for the economic recovery of the EU that remains anaemic more than a decade after the crisis.

Part II The Financial Crisis of 2007–2011, 9 The Initial Response to the Financial Crisis by the EU and Elsewhere

2018 ◽  
Author(s):  
Mccormick Roger ◽  
Stears Chris
Keyword(s):  
Financial Crisis ◽  
European Commission ◽  
Financial Stability ◽  
Financial Regulation ◽  
Initial Response ◽  
Banking Supervision ◽  
Basel Committee ◽  
Regulation And Supervision ◽  
European Financial Regulation ◽  
The Eu

This chapter discusses the various laws, regulations, and comparable measures that were passed or proposed in response to the financial crisis in the EU and elsewhere. It covers the responses of the de Larosière Report, G20, the Basel Committee on Banking Supervision, and the Financial Stability Board. The de Larosière Report, for instance, was commissioned by the President of the European Commission in October 2008 and delivered on 25 February 2009. The report sought ‘to give advice on the future of European financial regulation and supervision’ and has formed the basis of many of the responses to the financial crisis at EU level. The G20 issued a comprehensive communiqué on the crisis at the London ‘Summit’ of 2 April 2009, covering a number of macro-economic and other ‘architectural’ issues.

EU Law (MiFID II) and effective regulation: a step towards financial stability?

2019 ◽  
Vol 26 (6) ◽  
pp. 833-848
Author(s):  
Mariia Domina Repiquet
Keyword(s):  
Financial Markets ◽  
Financial Stability ◽  
Financial Regulation ◽  
Duty Of Care ◽  
Eu Law ◽  
Systemic Risks ◽  
Two Sides ◽  
The Eu

This article examines to what extent EU law is effective in preserving global financial stability and, therefore, preventing financial crisis. A difference between macro- and micro-approaches to financial regulation is explained. Whilst the former is concerned with the minimization of systemic risks and maintaining of the financial stability, the latter is focused on the effective regulation of all financial markets’ players, whatever the size of their portfolios. These approaches are the two sides of the same coin, that is limiting the possibility that future financial crises will occur. This paper argues that the effective regulation of investment firms, especially their duty of care, helps to preserve overall financial stability. The choice of the MiFID II as a case study is explained by its appreciation as one of the biggest achievements of EU policymakers in the context of financial law so far. How does a duty to ‘know your customer’ affect global financial stability within the EU? What is the role of soft law in preserving the financial system? These are the questions that this paper seeks to answer.

scholarly journals The Fund's Response to the 2007-08 Financial Crisis - Stocktaking and Collaboration with the Financial Stability Forum

Policy Papers ◽  
2008 ◽  
Vol 2008 (56) ◽  
Author(s):  
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Initial Assessment ◽  
Executive Directors ◽  
Policy Responses ◽  
Policy Frameworks ◽  
World Economic ◽  
Global Financial System ◽  
Economic Outlook

The present financial crisis is testing the resilience of the global financial system as well as the robustness of national and multilateral policy frameworks. As requested by Executive Directors, this paper reviews recent progress in meeting these challenges, focusing on the role of the Fund and its collaboration with the Financial Stability Forum (FSF). In concert with other international bodies, the Fund has sought to promote appropriate policy responses to the financial turmoil, including through its report on The Recent Financial Turmoil—Initial Assessment, Policy Lessons, and Implications for Fund Surveillance, in the Global Financial Stability Report (GFSR) and the World Economic Outlook (WEO), as well as in recent Article IV consultations and Financial Sector Assessment Programs (FSAPs). The Fund has also responded to the International Monetary and Financial Committee’s (IMFC) call for closer collaboration with other international fora, including by supporting the implementation of policy lessons from the crisis, such as the 67 FSF recommendations issued in April 2008.

scholarly journals Russia and Kazakhstan: range and dynamics of relations in the conditions of increasing interdependence of national economies

2019 ◽  
Vol 27 (3) ◽  
pp. 455-465
Author(s):  
Nikolai P. Gusakov ◽  
Mariia V. Maslova
Keyword(s):  
The United States ◽  
Humanitarian Assistance ◽  
Strategic Partner ◽  
Spheres Of Influence ◽  
The Moment ◽  
National Economies ◽  
Changing Role ◽  
Trade Partners ◽  
The Eu

The article reveals the changing role of Russia in Kazakhstan’s economy, identifies its position in trade, investment and humanitarian assistance to the country. The economic potential of Kazakhstan is described, the sectors of the economy most attractive to foreign investors are presented. The main countries seeking to increase their presence in Kazakhstan are identified, their place and role in trade and direct investment in Kazakhstan are compared. The separation of spheres of influence in the country is revealed. It is noted that the EU countries are the leading trade partners of Kazakhstan, but the largest imports to the country come from Russia, in the first place in investments are the Netherlands, then the United States. The most active humanitarian aid to Kazakhstan is provided by China, which pursues an active social policy. The article also analyzes the dynamics of changes in the role of Russia, it is revealed that the country is gradually losing its degree of influence in Kazakhstan, however, at the moment it still remains its main strategic partner.

An Investigation of the Maastricht Fiscal Criteria and the European Union's Harmonization

2019 ◽  
pp. 160-178
Author(s):  
Sami Buhur
Keyword(s):  
Financial Crisis ◽  
Public Debt ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Maastricht Treaty ◽  
Budget Deficits ◽  
Legal Regulations ◽  
Harmonization Process ◽  
Legal Sanctions ◽  
The Eu

The Maastricht Treaty brought many innovations in the process of harmonization of the EU. This treaty, which was realized in 1993, aims to harmonize the economic, financial, legal, and political aspects of the EU members. Two basic financial criteria were identified in the financial stability and harmonization process. The first is the ratio of member countries' budget deficits to GDP. The second is the ratio of the member country's public debt to the GDP. In this chapter, it will be revealed how EU member countries are adapting to financial criteria. For this purpose, reports and statistics published by international organizations such as OECD and EU will be examined. It will be seen in many of the EU member countries can not adapt to these criteria. Especially after the 2008 Global Financial Crisis, there were difficulties in adapting to these criteria. The EU Council put into effect several legal regulations in the harmonization process. Although many legal sanctions were put into effect for this purpose, success in complying with the financial criteria were not achieved.

scholarly journals Developments in Monetary Policies before and after the Recent Financial Crisis and the Change in the Role of Central Banks

2014 ◽  
Author(s):  
Zekayi Kaya ◽  
Erkan Tokucu
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Stability ◽  
Policy Instruments ◽  
Central Banks ◽  
Price Stability ◽  
Lender Of Last Resort ◽  
Monetary Policies ◽  
Recent Financial Crisis

During the historical process, application of the monetary policies and the roles of the central banks have changed within the framework of the developments in the world economy, problems encountered and the economic policies as a solution to these problems. The financial crises after 1990 and the recent financial crisis as the biggest experienced one after 1930s, caused an increase in the importance of the task of providing financial stability besides price stability and in this context in the function of “lender of last resort” of the central bank. The crisis required using new policy instruments in addition to interest rate instrument which was not sufficient enough in providing financial stability and the roles of the central banks in providing financial stability changed. In this study, applications of monetary policies and the changing role of the central banks will be examined. Within this framework, traditional and non-traditional instruments will be explained and the problems that can be confronted by a central bank when providing price stability besides financial stability will be remarked.

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