Język Polski
English
Published
:
2011-04-30
The State as a Stabilising Factor of the Bank Market at the Time of a Global Financial Crisis
Ilona Romiszewska
Abstract
The global financial crisis forced central banks and, crucially, governments in 19 countries to provide assistance to credit institutions on a scale unprecedented in the entire history of economic development. The paper identifies the nature, scale and efficiency of the instruments employed by countries and central banks to save both individual banks and the entire banking sector. The period covered by the study starts from the beginning of the crisis, i.e. 2007, until August 2010. It has been assumed that, regardless of ongoing disputes between economic theoreticians and practitioners about the role of the state in the economy, there was no alternative to state involvement. Whereas state aid whose goal is to ease the crisis should be considered natural, being the only way to mobilise and create capital, its form and scope remain disputable. Aid funds encourage banks to engage in moral hazard which becomes even more pronounced than before the crisis. This means that the state becomes hostage to large, systemically important institutions. In this context, the state and its institutions should actively seek to set up a new architecture for financial markets which would increase the latter's stability in the globalised world. The paper also takes a critical view of potential consequences that the actions taken might have for the economic growth. (original abstract)Keywords:
Banking sector, States' role in economy, Financial crisis, Banking crisisMost read articles by the same author(s)
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Romiszewska, I. (2011). The State as a Stabilising Factor of the Bank Market at the Time of a Global Financial Crisis. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 33(33). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1492