Download or read book International Literature Review on the Existence and Causes of the credit Crunch for Small and Medium sized Businesses written by Carolyn Conner and published by . This book was released on 1994 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Composition Matters written by Mr.Hui Tong and published by International Monetary Fund. This book was released on 2009-08-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study whether capital flows affect the degree of credit crunch faced by a country's manufacturing firms during the 2007-09 crisis. Examining 3823 firms in 24 emerging countries, we find that the decline in stock prices was more severe for firms that are intrinsically more dependent on external finance for working capital. The volume of capital flows has no significant effect on the severity of the credit crunch. However, the composition of capital flows matters: pre-crisis exposure to non-FDI capital inflows worsens the credit crunch, while exposure to FDI alleviates the liquidity constraint. Similar results also hold surrounding the Lehman Brothers bankruptcy
Download or read book Financial Crises Explanations Types and Implications written by Mr.Stijn Claessens and published by International Monetary Fund. This book was released on 2013-01-30 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.
Download or read book Trade Credit and Bank Credit written by Inessa Love and published by World Bank Publications. This book was released on 2005 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The authors study the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. They find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. The authors observe that firms with weaker financial position (for example, high pre-crisis level of short-term debt and low cash stocks and cash flows) are more likely to reduce trade credit provided to their customers. This suggests that the decline in aggregate credit provision is driven by the reduction in the supply of trade credit, which follows the bank credit crunch. The results are consistent with the "redistribution view" of trade credit provision, in which bank credit is redistributed by way of trade credit by the firms with stronger financial position to the firms with weaker financial stand "--World Bank web site.
Download or read book Anatomy of a Credit Crunch written by Francisco J. Buera and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Why are financial crises associated with a sustained rise in unemployment? We develop a tractable model with frictions in both credit and labor markets to study the aggregate and micro-level implications of a credit crunch--i.e., a tightening of collateral constraints. When we simulate a credit crunch calibrated to match the observed decline in the ratio of debt to non-financial assets of the United States business sector following the 2007-8 crisis, our model generates a sharp decline in output--explained by a drop in aggregate total factor productivity and investment--and a protracted increase in unemployment. We then explore the micro-level impact by tracking the employment dynamics for firms of different sizes and ages. The credit crunch causes a much larger reduction in the net employment growth rate of small, young establishments relative to that of large, old producers, consistent with the recent empirical findings in the literature.
Download or read book The Financial Crisis Inquiry Report written by Financial Crisis Inquiry Commission and published by Cosimo, Inc.. This book was released on 2011-05-01 with total page 692 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.
Download or read book Has the Financial Crisis Induced a Credit Crunch for Small and Medium Sized Enterprises in Germany written by Christopher Heine and published by GRIN Verlag. This book was released on 2009 with total page 101 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2009 in the subject Business economics - Miscellaneous, grade: 1,3, Otto Beisheim School of Management Vallendar, language: English, abstract: The following MBA-Thesis analyses how the financial crisis has affected different pre-conditions for the credit lending behaviour of banks. Additionally the demand for loans of potential borrowers will be considered. A "credit crunch" is defined as a restriction of the credit supply which leads to a mismatch of supply and demand. It will be shown that the financial crisis caused a still ongoing macroeconomic contraction. The macroeconomic contraction has a direct effect on the calculation of rating grades which downgrade. Parameters of credit risk assessments will be analysed and their pro-cyclicality will be tested. Corporate rating grades already downgraded significantly in 2008. The downgrading of firms has an effect on the credit pricing which influences also the credit demand. This effect will be shown by explaining a basic cost-plus loan pricing model. The sensitivity of the loan pricing towards changes of attributed capital, refinancing costs and cost of default will be exemplarily shown. It will be shown that the rating downgrades have a significant effect on the credit price. This price increase which might affect the demand is however per definition not a "credit crunch". The Basel II Accord regulation links the requirements for banks' capital to rating grades. Prior to the financial crisis the capital of banks has already been close to the regulatory minimum level. This made the banks vulnerable for impairments on assets. As new sources for capitalisation and possibilities to off-balance assets are currently limited banks have to reduce risk-weighted assets to fulfil the minimum capital requirements. A reduction of risk-weighted assets could be inter alia done by a restrictive corporate lending policy. The restrictions on banks' capital will not decrease quickly as especially impair
Download or read book The Credit Crunch written by Graham Turner and published by Pluto Press (UK). This book was released on 2008-06-20 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: 'A timely analysis of the pressures on world money markets and the fundamental weaknesses in the global financial system.' - Hamish McRae, Independent
Download or read book A Contemporary Review of 2008 Credit Crunch written by Ömer Tugsal Doruk and published by LAP Lambert Academic Publishing. This book was released on 2011-11 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: We will remember 2008 year in our mind as "crisis year." Because, 'the Credit Crunch' as this global financial crisis has been dubbed was very strongly felt in 2008. Stock markets have suffered heavy losses, market sales fell dramatically, and major corporations especially long established financial institutions collapsed and some became bankrupted, and more striking financial scandals emerged in this crisis. I think, this crisis deserves serious academic attention and will be noted as key humankind turning point and at least be at the top lines of the history of financial economics. This paper has had to review a wide range of topics related to first the causes and the effects to fully understand this Crisis before being able to assess the symptoms and decide on feasible solutions for 'trust sense'. At the heart, in the empirical part of this paper, investor behavior in Turkey in 2008 Crisis is being analyzed with analytical way. In the last two parts, this research includes key lessons for learnt and how regulations are most sensible for global markets are scrutinized for investor behavior.
Download or read book Global Waves of Debt written by M. Ayhan Kose and published by World Bank Publications. This book was released on 2021-03-03 with total page 403 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.
Download or read book Surviving the Credit Crunch of the 90s written by Lance H. Woeltjen and published by . This book was released on 1991 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book After the Credit Crunch written by John Redwood and published by . This book was released on 2009 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In After the Credit Crunch, John Redwood describes how the gathering storm of the financial crisis developed and the broke. He outlines the way that banks work, explains policies such as 'quantitative easing', and gudies the reader through the complex world of CDos, futures and other sophisticated financial instruments."--Jacket.
Download or read book Credit Crises written by Jochen Felsenheimer and published by John Wiley & Sons. This book was released on 2008-06-16 with total page 277 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on the recent subprime crisis, the authors analyze the mechanisms of a financial market crisis. In order to highlight the basic transmission mechanisms and drivers of a financial market crisis they discuss the relevant players & strategies, explain the principles of the financial instruments that were involved in the crisis and analyze how bubbles emerge, how they burst and what the economic impact might be. The authors address the following key questions: * Why do financial markets run into crises over and over again? * Where do risks for financial crises come from? * Who are the players in the game? * Which instruments and strategies can drive a crisis? * What are the transmission mechanisms onto other markets and the real economy? * When is it all finally over? * How to best weather the storm? Hence, in the prologue the authors highlight the basic framework for a financial crisis based on the subprime crisis. Here, they will also introduce the important topics and drivers of the crisis, i.e. the relevant players (banks, investment banks, hedge funds, real money investors, regulators and rating agencies), the involved instruments (ABS/RMBS, CDOs, SIV, leveraged loans, Leveraged Super Senior tranches, etc.), the strategies which caused the crisis or were affected by the meltdown (leveraged exposure to highly correlated risks), and risks that were underestimated (investors ignored the market risk that was involved with the leveraged bets). In the subsequent chapter -- which is split into three parts -- they will explain these important topics in more detail and highlight the infection and transmission mechanisms. As an example, they introduce the business and investment concepts of investment banks and hedge funds and how they were involved in the crisis. Moreover, they explain how structured credit products (such as ABS, CDOs and SIVs) work and how they were used in order to implement leveraged bets in the markets. Finally, they highlight how a financial crisis evolves and why certain financial institutions failed. In the epilogue, they conclude how markets manage a crisis and why the crisis may also be healthy for the stability of financial markets.
Download or read book From Your Wallets to Their Pockets written by Tony Pallante and published by iUniverse. This book was released on 2008-11 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: From Your Wallets to Their Pockets shares an easy-to-understand insider's point of view of the complex mortgage industry while providing a comprehensive explanation about the key players, how they collaborate within credit markets, and why these interactions have created both current and future painful financial crises. Tony Pallante, CEO of Performance Capital Services, possesses more than twenty-five years of experience as a consultant and executive who helps financial organizations in strategic development and execution. In his educational reference manual tailored for the average consumer, Pallante offers a brief history of the mortgage market, basic information about products and descriptions, a glossary of industry terms, and in conclusion, connects the pieces of the puzzle by sharing his insight into the very real problems that the current colossal financial sinkhole has created for consumers, including historically high foreclosure rates, depreciating home values, and dwindling access to credit. From Your Wallets to Their Pockets explores a vast range of topics of the utmost interest to industry participants, policy makers, and the American taxpayer, ultimately exposing the hidden truths within an industry that has caused financial mayhem across global economies.
Download or read book How Credit Crises Happen written by Barbara Gottfried Hollander and published by The Rosen Publishing Group, Inc. This book was released on 2010-08-15 with total page 83 pages. Available in PDF, EPUB and Kindle. Book excerpt: The most recent credit crisis brought to light many problems with our financial system. This book offers plain-spoken explanations of what went wrong during the past crises and explains how to prevent future problems.
Download or read book Global Credit Crunch written by Adnan Khan and published by Createspace Independent Publishing Platform. This book was released on 2008-06-04 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Global credit crunch, food crisis and oil crisis has once again highlighted the fragility of Capitalism, as the fallout from the credit crunch and the wider economic crisis continues, demands for alternatives are certain to grow. The aim of this book is to scrutinize the causes of the current crisis and evaluate some concepts which go to the heart of Capitalism which will always cause such crisis. It will asses the various factors that have all contributed to the crisis and scrutinize why Capitalism regularly has economic crisis. The Islamic view on such factors will be presented in the form of an Islamic economy under the Khilafah in order to show how Islam will bring the much needed stability the world needs.
Download or read book The Age of Instability written by David Smith and published by Profile Books. This book was released on 2010-03-18 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bored with endless grandstanding and people being wise after the event? Then, The Age of Instability is the one book you should read on the financial crisis. Setting the near collapse of the international financial markets and banking system in a global and historical context, Sunday Times Economics editor and bestselling author, David Smith, looks not only at the political and economic factors that contributed to the fall of Lehmans, collapse of Iceland and disintegration of the subprime mortgage market but also at the emergence of a culture of risk and greed that made it possible to believe that greed was good and the good times would last forever. The Age of Instability provides an authoritative yet accessible guide to what happened, where, and when with practical suggestions for what needs to happen next.
