Littérature scientifique sur le sujet « Financial crises – Finland – 21st century »

In this second paper in a series of four, we examine how the era of sustained economic growth also gave rise to recurring economic crises. Assessing the economic turbulence of the late 19th century and the early 20th century, and three prominent crises of the 20th and early 21st centuries: the period following the Second World War, the 1980–1981 Recession and the 2008 Financial Crisis, we survey how the economy and policy have reacted historically to shocks to growth, how crises have restructured industry and work, altering productivity and impacting future growth potential, and how the long-run growth trend persists despite periods of decline or stagnation.

Abstract As the world is struggling with the Covid crisis and its numerous aftereffects, it is easy to forget that the present pandemic is only the latest of a whole series of paradigm-changing 21st-century crises. Indeed, the word “crisis” has become one of the key concepts for the understanding of the early 21st century. Thus, crisis seems very much to be the default position of the 21st century, the new norm. In this paper, I argue that the 21st century has a recognizably different cultural logic from what the previous one had: most of our social, ideological, political, financial, and ecological paradigms are either changing or will (or must) change soon. As most of our critical concepts, intellectual tools, and ideological frameworks were made during the boom years of the late 20th century, they are clearly outdated and inadequate today. Thus, in this paper, through taking account of these shifting intellectual and artistic paradigms, I attempt to indicate how the present crisis of knowledge and sense-making may be turned into a process of knowing and making sense of crisis, and thus help us meet the challenges of the new century. It is often through these fault-lines, breakdowns, and inconsistencies of our narratives that one may recognize those pre-crisis assumptions that we have to critically re-evaluate and update in order to understand the new century.1

We are living in a world which is severely crisis-ridden and faces some major challenges. The fact that we are currently facing a genuine global pandemic (COVID-19) brings about even more uncertainty. The social and political institutions, which emerged and consolidated during the 20th century, and which created stability, have become fragile. The young generation born in the 1990s and onwards have experienced 9/11 and the ‘war against terrorism’, the financial crisis of 2008, changes to climate, environmental degradation, and most recently the COVID-19 pandemic. The generation born between 1960 and 1990 have had the same experiences along with severe economic crises in the 1970s and 1980s and the Cold War. Some of these challenges are in different ways intertwined with capitalism and its crises, while others are linked to the rapid development of new technologies, in particular innovations within communication and information technologies. This introduction lists the most important grand challenges facing the world as they have emerged more recently. The five articles following this introduction address some of these challenges, with particular attention to the problems of capitalism and democracy and the relation between these two areas. Most authors agree that climate change and the destruction of the environment are the biggest and most pertinent problems to address, but it is their stance that we can only meet these challenges if democracy is functioning well.

The theory of nonlinear complex systems has become a proven problem-solving approach in the natural sciences from cosmic and quantum systems to cellular organisms and the brain. Even in modern engineering science self-organizing systems are developed to manage complex networks and processes. It is now recognized that many of our ecological, social, economic, and political problems are also of a global, complex, and nonlinear nature. Modern evolutionary economics can be modelled in the framework of complex systems and nonlinear dynamics. Historically, evolutionary economics was inspired by Schumpeterian concepts of business cycles and innovation dynamics. What are the laws of sociodynamics? What can we learn from nonlinear dynamics for complexity management in social, economic, financial and political systems? Is self-organization an acceptable strategy to handle the complexity in firms, institutions and organizations? The world-wide crisis of financial markets and economies is a challenge for complexity research. Misleading concepts of linear thinking and mild randomness (e.g. Gaussian distributions of Brownian motion) must be overcome by new approaches of nonlinear mathematics (e.g. non-Gaussian distribution), modelling the wild randomness of turbulence at the stock markets. Systemic crises need systemic answers. Nevertheless, human cognitive capabilities are often overwhelmed by the complexity of nonlinear systems they are forced to manage. Traditional mathematical decision theory assumed perfect rationality of economic agents (homo oeconomicus). Herbert Simon, Nobel Prize laureate of economics and one of the leading pioneers of systems science and cognitive science, introduced the principle of bounded rationality. Therefore, we need new insights into the factual microeconomic behaviour of economic agents by methods of humanities, cognitive and social sciences, which are sometimes called ‘experimental economics’. Social and economic dynamics are interdisciplinary challenges of modern complexity research.

After two turbulent decades (1980s and 1990s) when emerging-market economies were frequent victims of financial crises, in the first two decades of the 21st century their macroeconomic performance improved. Nevertheless, there were three crisis episodes that hit some of these countries: (i) the spill-over effects of the global financial crisis in 2008–2009; (ii) the consequences of the decline in commodity prices in 2014–2016 for their exporters; (iii) the turbulence in Argentina and Turkey in 2018. Currency crises in Argentina and Turkey in 2018 underlined again the key role of prudent domestic policies. Early policy correction can help to prevent a crisis and avoid its economic, social and political costs. If crisis cannot be avoided, the comprehensive anti-crisis package, including up-front monetary and fiscal adjustment, should be adopted as quickly as possible to arrest market panic and reverse negative expectations.

This article is specifically devoted to financial globalisation and financial crises in the early 21st century. Obviously, it is a topic everyone is interested in after the global financial crisis of 2008–2010, the worst global financial crisis since the Great Depression. Its effects are still felt across the world today. Both industrial and emerging countries still suffer from high unemployment. In some of them, GDP has not yet reached pre-crisis levels. And this global crisis — if it were not enough — was followed very quickly by the Eurozone’s sovereign debt crisis, which even though Ireland and now just recently Portugal have returned to private borrowing markets, is not resolved at all and is pretty much in remission but could come back. Lately, there have been concerns about emerging markets, including the BRICS, starting in 2016. There are various tremors in the emerging markets, capital outflows and currency depreciation. So, all over the world, one can see events that potentially cause questions about financial stability, which is an especially acute issue to look at.

AbstractBoth the financial crisis of the first decade of the 21st century, as well as the deterioration of trade relations between the European Union and the Russian Federation were events that significantly affected the functioning of the largest listed companies on the food market: on the one hand, aggravating the conditions of economic functioning, on the other hand creating a stimulus to seek new innovative solutions to help companies survive on the market. The aim of the work was to present the impact of crises on the intellectual capital of WIG-Food index companies, which is an indirect measure of innovation. The MV/BV and q-Tobin index were used for the study, as well as selected quantitative methods: multiple regression, Ward’s method and seasonal additive decomposition. The results of the work indicate that the companies are divided into two groups, within which similar trends in shaping intellectual capital are observed. In addition, one of the groups clearly noticed the impact of the financial crisis and the introduction of an embargo on the shaping of intellectual capital.

This article examines the Libra project, which was announced by Facebook in 2019 as an important turning point in the development of digital currency since Bitcoin. Libra is a kind of stablecoin, and it has been identified as a global stablecoin owing to its wide-ranging impact on the dimension of global finance. Because the Libra project aims to offer a globally accessible low-cost payment system for all users, we analyse it in the research area of global finance with a qualitative approach to the history of economic theories of money and finance. In this area, Karl Polanyi’s thoughts on money and finance and the interpretation by Saiag, which he called a neo-Polanyian approach, deserve attention. Taking this approach, we understand that unofficial functions of haute finance played a significant role in sustaining the international and interdependent financial system in the late 19th and early 20th centuries. In this context, although it also saved colonized and dependent regions from falling into financial crises, it was not socially helpful for them. If Libra wants to be the haute finance of our age in the real sense of serving to bring about financial inclusion, such a point should be considered. However, for the moment, existing international monetary institutions are only keen to take regulatory measures against the risk of dirty transactions. There is a substantial lacuna of publicness in the discussion, and this needs to be filled in in the near future.

The Irish crash that began in 2008 has been described as one of the most dramatic economic reversals ever experienced by an industrialised country. There is a strong consensus about the economic roots of the crisis: the country experienced a classic asset bubble. Much more difficult to explain however, is how a mature democracy sleep-walked into a crisis that had so much precedent and in retrospect seems to have been so apparent. The policy decisions made in the boom period must shoulder much of the blame, but they were not created in a vacuum. This thesis systematically examines the discourse on the Irish economy from a broad range of commentators in the years prior to the crash, including international and domestic organisations, academics, the newspapers, and politicians. It demonstrates that key mainstream analysts anticipated how the property boom would end on the basis of estimated fundamental house prices and demand levels. This implicitly assumed that these fundamentals would remain strong as the boom abated, and ignored the potential for a market panic. By contrast, the most prescient analysts relied heavily on international precedent, and recognised that property price falls would be closely correlated with the increase observed during the boom. A key dimension of the discourse was therefore how the lessons of financial history were applied or disregarded. The Irish crash that began in 2008 has been described as one of the most dramatic economic reversals ever experienced by an industrialised country. There is a strong consensus about the economic roots of the crisis: the country experienced a classic asset bubble. Much more difficult to explain however, is how a mature democracy sleep-walked into a crisis that had so much precedent and in retrospect seems to have been so apparent. The policy decisions made in the boom period must shoulder much of the blame, but they were not created in a vacuum. This thesis systematically examines the discourse on the Irish economy from a broad range of commentators in the years prior to the crash, including international and domestic organisations, academics, the newspapers, and politicians. It demonstrates that key mainstream analysts anticipated how the property boom would end on the basis of estimated fundamental house prices and demand levels. This implicitly assumed that these fundamentals would remain strong as the boom abated, and ignored the potential for a market panic. By contrast, the most prescient analysts relied heavily on international precedent, and recognised that property price falls would be closely correlated with the increase observed during the boom. A key dimension of the discourse was therefore how the lessons of financial history were applied or disregarded.

Defence date: 13 June 2019
Examining Board: Prof. Hanspeter Kriesi, European University Institute (Supervisor); Prof. Elias Dinas, European University Institute; Prof. Eva Anduiza, Universitat Autònoma de Barcelona; Prof. Kenneth M. Roberts, Duke University
The Great Recession constituted a breaking point in several aspects of the cultural, economic and political life of southern European countries (i.e. Greece, Italy, Portugal and Spain). This dissertation aims to shed light on the political consequences of the economic crisis in this region —with a specific focus on Spain as a paradigmatic case— by analysing different aspects of the political transformations that took place during the period of crisis. The underlying argument is that, albeit some relevant differences, the four countries experienced a common pattern: the incapacity of national politics to offer differentiated recipes to the deteriorating economic situation triggered a widespread crisis of representation that introduced new issues in the political agenda and drove the political transformations in these countries. The combination of a political and economic crisis at the national and European levels opened new political spaces that new parties capitalised by appealing to the need for democratic renewal and opposition to austerity politics. Furthermore, as illustrated by the Spanish case, and in particular the Catalan experience, the political crisis had far-reaching consequences beyond economic grievances, leading to the activation of different types of conflicts. Overall, the findings suggest that the transformations in the structure of political conflict in southern Europe in the aftermath of the Great Recession are not the by-product of a growing cultural divide —as is the case in several other continental and north-European countries—, but instead respond to the loss of credibility in the political system. Methodologically, the dissertation relies on an original dataset of media content as well as on several sources of survey data to test the empirical validity of the claims.
Chapter 2 'From Boom to Bust : A Comparative Analysis of Greece and Spain under Austerity' of the PhD thesis draws upon an earlier version published as chapter 'From boom to bust : a comparative analysis of Greece and Spain under austerity' (2018) in the book Living under austerity : Greek society in crisis.
Chapter 3 'Old versus new politics: The political spaces in Southern Europe in times of crisis' of the PhD thesis draws upon an earlier version published as an article 'Old versus new politics : the political spaces in Southern Europe in times of crises' (2018) in the journal 'Party politics'
Chapter 4 'Out with the Old: Restructuring Spanish Politics' of the PhD thesis draws upon an earlier version published as an article 'Challenging business as usual? : the rise of new parties in Spain in times of crisis' (2017) in the journal 'West European politics'

Defence date: 31 March 2017
Examining Board: Professor Hanspeter Kriesi, EUI (EUI Supervisor); Professor Pepper D. Culpepper, formerly EUI/University of Oxford (Co-Supervisor); Professor Mark Blyth, Brown University; Professor Niamh Hardiman, University College Dublin
This thesis explores why, and in what political process, austerity became the uniformly accepted policy response of Eurozone governments in the economic crisis of 2008–2012. It traces the path to austerity in two distinct Eurozone Member States, Ireland and Finland. Ireland, in this crisis, became a debtor country that had to do heavy domestic adjustment; Finland, by contrast, ended up in the group of Eurozone creditor countries, imposing structural adjustment programmes on the debtor countries. The analysis of the thesis emphasizes political agency behind ideas and shows the political process where perceptions about the economic crisis were formed. It argues that two types of politicization of the crisis were necessary for the outcome of interest, the prevalence of austerity, to happen. The Irish case demonstrates a two-stage process of politicization and internalization of the crisis, where the significant policy decisions were reached in a transnational, fairly technocratic policy process but were debated and internalized in domestic, redistributive and politicized process. The transnational stage was characterized by economic and practical reasoning, whereas the domestic stage represented a conflict about distributive justice. For Finland, the 2008–9 financial crisis was not domestically politicized at all. This only changed in 2010–12, when the crisis became re-interpreted as a sovereign debt crisis of the GIIPS countries. Yet the politicization in Finland did not come about as a typical domestic redistributive debate, but as a new type of supranational conflict over distributive justice. Such conflict was not primarily framed in terms of just burden-sharing, but in terms of national and European interest. It was simultaneously a debate on borders and boundaries – polity and identity – as it was about distributive justice. Alongside rhetoric, the official line of Finnish EU policy became tougher and Finland became perceived as an increasingly difficult and selfish member of the EU community.

This thesis examines the theoretical and empirical aspects of financial market volatility. Financial markets are essentially volatile. However, excess volatility may impair the smooth functioning of the financial system and economic performance. Volatility that was evident in financial markets during the recent financial crisis, and, even more recently, during the European debt crisis, has attracted renewed interest in studying volatility. The most prominent feature of this crisis was its widespread effects on the financial markets of developed countries, while leaving emerging markets as the success story. The main objectives of this thesis are twofold. The first is to quantify and investigate the nature of the factors behind the transmission of volatility on and among financial markets during the crisis of 2007-2011, with a special focus on developed countries. Both analytical and empirical modeling approaches are used. The analytical approach in Chapter 2 is built up on the herd behavior of international investors, using the role of carry traders' as a conduit. Particular attention is given to modeling the way in which private signals on margin requirements lead some investors to change their decisions, and how their strategic behavior transmits shocks across countries. Chapter 3 adopts an empirical approach using a latent factor methodology, and aims to explore the transmission mechanisms of the crisis through equity and bond markets over different phases of the crisis of 2007-2011. The factor model in particular specifies contagion channels through cross-country and cross-market contagion linkages, after controlling for other forms of fundamentals through the factor structure. The second objective of the thesis is to examine whether and how successfully emerging market central banks attempt to shield their domestic currency market from externally sourced financial market volatility through foreign exchange intervention. Two empirical approaches, the generalized autoregressive heteroskedasticity approach in Chapter 4 and the latent factor approach in Chapter 5, are used to explore the significance and effectiveness of foreign exchange intervention using a unique data set of daily intervention obtained from the Central Bank of Sri Lanka. Overall, this thesis finds strong evidence for the transmission of asset market volatility across developed countries during the crisis of 2007-2011. Through herd behavior and the feedback effects in asset prices and exchange rates, financial markets can be destabilized during crises. Financial market contagion is another significant channel through which the stability in the financial system can be compromised, and several channels of contagion are identified and estimated for different phases of the crisis. However, the relative importance of each contagion channel varies depending on the source asset market and the phase of the crisis. Turning to emerging market responses to periods of global volatility, foreign exchange intervention is found to be an effective policy instrument for shielding against external shocks, as is evident for Sri Lanka. Intervention is aimed to "lean against the wind" to reduce volatility and to accumulate international reserves. The central bank responds to global movements in currency markets when intervening, rather than movements specific to the domestic currency market.

Defence date: 17 October 2016
Examining Board: Professor Adrienne Héritier, European University Institute (Supervisor) ; Professor Ulrich Krotz, European University Institute / RSCAS (Co-Supervisor) ; Professor Amy Verdun, University of Victoria ; Professor Lucia Quaglia, University of York
Why and how do composite actors such as states or international institutions emerge as political leaders? Moreover, once in charge, how do they influence policy or institutional change? What are the conditions for successful leadership? These questions become particularly relevant in times of crisis. However, there is no political science theory that explains the emergence and the impact of leadership when exercised by composite actors. In the context of the Eurozone crisis, we observe that neither Germany, which is the actor most frequently called upon to assume leadership, nor any of the EU’s institutional actors have emerged as leader under all circumstances. Instead, we find three different outcomes: no leadership, failed leadership, and successful leadership. This thesis develops a theoretical model to explain this variation and to address the stated gap in the literature. Building on rational-institutionalist assumptions, it argues that leaders can help a group to enhance collective action when there are no, or only incomplete, institutional rules to do so. Thus, especially in times of crisis, leaders can act as drivers of policy or institutional change. However, they emerge only if the expected benefits of leading exceed the costs of it, and if the potential followers suffer high status quo costs. A leader’s impact on the outcomes, by contrast, depends on its power resources, the distribution of preferences, and the institutional constraint. The model is applied to Germany’s role in the first financial assistance to Greece, the proposal to establish a so-called ‘super-commissioner’, and the shaping of the Fiscal Compact. Moreover, the attitude of the European Commission and the European Parliament towards the issue of Eurobonds as well as the European Central Bank’s launch of the Outright Monetary Transactions are analysed on the basis of congruence tests and rigorous process-tracing. These within-case analyses are complemented by a cross-case comparison in order to enhance the external validity of the results. The analysis draws on 35 semi-structured élite interviews conducted at the German Ministry of Finance, the European Central Bank, the European Commission, the Council of the European Union, the European Parliament, and two Permanent Representations in Brussels.

金融危机中发达证券化市场出现的信息披露问题给新兴市场敲响了警钟。这些新兴市场意识到在引入证券化的有关结构性改革措施的同时，增加信息披露和市场透明度也十分重要。
首先，本文就金融危机中证券化所暴露的问题和危险进行分析。在证券化过程中存在的一系列结构和制度性问题中，有关基础资产质量和风险转移的信息披露和透明度不足。这个问题在金融危机中尤其突出，美国次贷市场中低质量的抵押贷款得以通过证券化将这些贷款的风险以一种复杂且不透明的方式散布到整个金融体系。
第二，本文首先回顾了信息披露在现代金融监管中的角色和作用。接着分析了证券化产品的信息披露的特殊性以及美国和欧盟采用的不同披露监管制度。次之，本文介绍了金融危机后各国就证券化信息披露制度的缺陷进行的改革措施。
第三，本文重点分析了中国证券化市场中的信息不对称问题，以及信息披露制度的严重缺陷。鉴于从金融危机中所获取的经验和教训，以及中国证券化市场的特点，本文通过对比分析来探讨一个健全的信息披露制度对新兴的中国证券化市场潜在的影响，以及该制度是否能支撑这个市场的健康和可持续发展。本研究最后提出具体建议来改进中国现有的证券化信息披露制度，这些建议将有助于减少证券化本身固有的风险。
Disclosure failures exposed in mature securitization markets during the global financial crisis sent warnings to emerging markets. Those emerging markets learned that it is critical to improve disclosure and market transparency in addition to the introduction of broad structural reforms into the securitization process.
First, an investigation into the dangers associated with asset securitization shows a number of structural and institutional flaws in the securitization process. The lack of adequate disclosure and the poor level of transparency regarding asset quality and risk transfer were paramount. This became obvious during the 2007-09 financial crisis as the risks associated with low-quality residential mortgage loans in the United States were distributed along the securitization process to the entirety of the financial sector in a complex and relatively opaque way.
Second, I review of the role of disclosure in financial regulation. There will be an assessment of the special features of securitization-related disclosure regulation and the different disclosure regulatory systems adopted in the US and the EU. This will be followed by an introduction of post-crisis disclosure reform initiatives.
Thirdly, I will examine the poor level of market transparency and the lack of adequate disclosure requirements. This leads to an analysis of the consequent information asymmetry problems that are endemic to the Chinese securitization market. Based on lessons drawn from the financial crisis and the unique characteristics of the Chinese securitization market, I then explore from a comparative point of view the potential impact of a comprehensive and sound disclosure regime and examine whether it can support a sustainable and healthy development for the emerging Chinese securitization market. This study concludes with specific proposals that aim to promote the effectiveness of disclosure and transparency for the purpose of curtailing risks inherent in securitization in the Chinese Context.
Detailed summary in vernacular field only.
Detailed summary in vernacular field only.
Detailed summary in vernacular field only.
Detailed summary in vernacular field only.
Tan, Fugui.
"November 2012."
Thesis (Ph.D.)--Chinese University of Hong Kong, 2013.
Includes bibliographical references.
Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web.
Abstract also in Chinese.
Abstract --- p.i
摘要 --- p.iii
Acknowledgements --- p.iv
Table of Abbreviations --- p.v
List of Diagrams and Tables --- p.vii
Chapter Chapter 1 --- Introduction --- p.1
Chapter 1.1 --- Rationale and Research Questions --- p.1
Chapter 1.1.1 --- General --- p.1
Chapter 1.1.2 --- Information Problems in Securitization Processes and Markets --- p.3
Chapter 1.1.3 --- Disclosure and Securitization --- p.4
Chapter 1.1.4 --- Securitization Disclosure Regulation in China --- p.5
Chapter 1.1.5 --- Research Questions --- p.8
Chapter 1.2 --- Organization --- p.9
Chapter 1.3 --- Research Methodology --- p.10
Chapter Chapter 2 --- Securitization and Its Evolution --- p.14
Chapter 2.1 --- Introduction --- p.14
Chapter 2.2 --- An Overview of Securitization --- p.14
Chapter 2.2.1 --- General --- p.14
Chapter 2.2.2 --- Definition and Transaction Structure --- p.14
Chapter 2.2.3 --- Transaction Parties and Structural Issues --- p.16
Chapter 2.2.3.1 --- General --- p.16
Chapter 2.2.3.2 --- Originator / Sponsor --- p.18
Chapter 2.2.3.3 --- The Issuing Entity - SPV --- p.20
Chapter 2.2.3.4 --- Credit Rating Agencies --- p.22
Chapter 2.2.3.5 --- Arranger / Underwriter --- p.23
Chapter 2.2.3.6 --- Servicer --- p.24
Chapter 2.2.3.7 --- Trustee --- p.25
Chapter 2.2.3.8 --- Legal Counsel --- p.26
Chapter 2.2.3.9 --- Structural Issues --- p.26
Chapter 2.3 --- Main Legal Issues and Challenges --- p.31
Chapter 2.3.1 --- General --- p.31
Chapter 2.3.2 --- The Validity of the Asset Transfer --- p.32
Chapter 2.3.2.1 --- True Sale --- p.32
Chapter 2.3.2.2 --- Alternatives to True Sale --- p.35
Chapter 2.3.2.3 --- Re-characterization --- p.39
Chapter 2.3.3 --- Bankruptcy Remoteness --- p.40
Chapter 2.3.3.1 --- Bankruptcy Remoteness of the SPV --- p.40
Chapter 2.3.3.2 --- Risk of Substantive Consolidation --- p.41
Chapter 2.4 --- Legal Documentation in the Securitization Process --- p.44
Chapter 2.4.1 --- General --- p.44
Chapter 2.4.2 --- Transfer Agreements --- p.44
Chapter 2.4.3 --- Trust Deeds --- p.44
Chapter 2.4.4 --- Servicing Agreements --- p.45
Chapter 2.4.5 --- Offering Circulars and Prospectuses --- p.45
Chapter 2.4.6 --- Other Documentation --- p.46
Chapter 2.5 --- The Rationale of Securitization --- p.46
Chapter 2.5.1 --- General --- p.46
Chapter 2.5.2 --- Balance Sheet Considerations --- p.47
Chapter 2.5.3 --- Cheaper Funding --- p.51
Chapter 2.5.4 --- Matching Assets and Liabilities --- p.52
Chapter 2.5.5 --- Obtaining A Varied Investor Base --- p.53
Chapter 2.5.6 --- Risk Management --- p.53
Chapter 2.5.7 --- Making Profits through Arbitrage --- p.54
Chapter 2.6 --- The Evolution of Securitization --- p.54
Chapter 2.6.1 --- General --- p.54
Chapter 2.6.2 --- Securitization and Structured Finance --- p.55
Chapter 2.6.3 --- The Variety of Asset Types and Securitized Products --- p.56
Chapter 2.6.3.1 --- General --- p.56
Chapter 2.6.3.2 --- MBSs --- p.57
Chapter 2.6.3.3 --- ABSs --- p.57
Chapter 2.6.3.4 --- CDOs --- p.58
Chapter 2.6.4 --- Static and Dynamic Securitization Structures --- p.61
Chapter 2.6.4.1 --- Static Structure --- p.61
Chapter 2.6.4.2 --- Dynamic Structure --- p.61
Chapter 2.6.5 --- International Diffusion of Securitization --- p.64
Chapter 2.7 --- Conclusion --- p.68
Chapter Chapter 3 --- Information Failures in Securitization: the Example of the 2007-09 Financial Crisis --- p.71
Chapter 3.1 --- Introduction --- p.71
Chapter 3.2 --- From the Subprime Mortgage Meltdown to the Financial Crisis --- p.73
Chapter 3.3 --- Information Asymmetries in Mortgage Securitization Markets --- p.83
Chapter 3.3.1 --- General --- p.83
Chapter 3.3.2 --- Information Asymmetries at the Loan-Origination Level --- p.84
Chapter 3.3.2.1 --- Originator’s Information Advantage --- p.84
Chapter 3.3.2.2 --- Problems of the Originate-To-Distribute Model --- p.86
Chapter 3.3.2.3 --- Moral Hazard in the Mortgage Markets --- p.91
Chapter 3.3.2.4 --- The Failure of Preventive Mechanisms --- p.93
Chapter 3.3.3 --- Information Asymmetries in the Securitization Process --- p.96
Chapter 3.3.3.1 --- General --- p.96
Chapter 3.3.3.2 --- Information Asymmetries between Securitizers and Investors --- p.97
Chapter 3.3.3.3 --- Information Asymmetries between Servicers and Investors --- p.99
Chapter 3.3.3.4 --- Limitations of US Disclosure Regulation --- p.101
Chapter 3.3.4 --- Information Failures Caused by the Complexity of Securitized Products --- p.107
Chapter 3.3.5 --- Information Failures in the Credit Rating Process --- p.111
Chapter 3.3.5.1 --- General --- p.111
Chapter 3.3.5.2 --- The Role of Credit Ratings in the Securitization Industry --- p.112
Chapter 3.3.5.3 --- Information Failure in the Credit Rating Industry --- p.114
Chapter 3.3.6 --- The Impacts of Insufficient Disclosure during the Financial Crisis --- p.119
Chapter 3.4 --- Conclusion --- p.121
Chapter Chapter 4 --- Disclosure and Securitization --- p.124
Chapter 4.1 --- Introduction --- p.124
Chapter 4.2 --- The Role of Disclosure in Financial Markets --- p.125
Chapter 4.2.1 --- General --- p.125
Chapter 4.2.2 --- Protection of Investors --- p.128
Chapter 4.2.3 --- Promotion of Market Efficiency --- p.129
Chapter 4.2.4 --- Reduction of Systemic Risk --- p.132
Chapter 4.2.5 --- Disclosure Based Regulatory System versus Merit Based Regulatory System --- p.133
Chapter 4.3 --- Securitization Disclosure Regulation --- p.136
Chapter 4.3.1 --- The Characteristics of Securitization Disclosure Regulation --- p.136
Chapter 4.3.1.1 --- General --- p.136
Chapter 4.3.1.2 --- Assets versus the Issuing Entity --- p.136
Chapter 4.3.1.3 --- Vertical versus Horizontal --- p.138
Chapter 4.3.1.4 --- Mandatory versus Voluntary Disclosure --- p.139
Chapter 4.3.2 --- US and EU Disclosure Requirements for Public Offerings of Asset-Backed Securities --- p.141
Chapter 4.3.2.1 --- General --- p.141
Chapter 4.3.2.2 --- US Asset-Backed Securities Disclosure --- p.142
Chapter 4.3.2.3 --- EU Asset-Backed Securities Disclosure --- p.144
Chapter 4.3.2.4 --- Information on Transaction Parties in US and EU ABS Prospectuses --- p.147
Chapter 4.3.2.5 --- Information on Transaction Structures in US and EU ABS Prospectuses --- p.152
Chapter 4.3.2.6 --- Information on the Underlying Assets in US and EU ABS Prospectuses --- p.154
Chapter 4.3.3 --- Post-Issuance Disclosure: EU Post-Issuance Reporting and US Ongoing Reporting --- p.155
Chapter 4.3.4 --- A Comparison between the EU and US Disclosure Regulations --- p.157
Chapter 4.4 --- Policy Initiatives for the Improvement of Securitization Disclosure --- p.160
Chapter 4.4.1 --- An Overview of Policy Initiatives --- p.160
Chapter 4.4.2 --- Enhancing Disclosure on the Underlying Assets --- p.163
Chapter 4.4.2.1 --- Asset-Level Information --- p.163
Chapter 4.4.2.2 --- Enhancing Disclosure for the Due Diligence Efforts of the Issuer --- p.166
Chapter 4.4.3 --- Enhancing Disclosure on Transaction Structures --- p.167
Chapter 4.4.4 --- Efficient and Smart Disclosure --- p.168
Chapter 4.4.5 --- Improved Disclosure on Credit Ratings --- p.170
Chapter 4.4.6 --- Disclosure in Private Markets --- p.172
Chapter 4.5 --- Interaction between Disclosure and Other Policy Initiatives --- p.173
Chapter 4.5.1 --- General --- p.174
Chapter 4.5.2 --- Reducing Conflict of Interests --- p.174
Chapter 4.5.3 --- Product Standardization and Simplification --- p.177
Chapter 4.5.4 --- Improving Credit Ratings --- p.178
Chapter 4.5.5 --- The Interaction between Disclosure and other Policy Initiatives --- p.179
Chapter 4.6 --- Conclusion --- p.180
Chapter Chapter 5 --- Securitization Practices and Laws in China --- p.182
Chapter 5.1 --- Introduction --- p.182
Chapter 5.2 --- An Overview of the Economic Reforms in China --- p.183
Chapter 5.2.1 --- Economic Reforms in China since 1978 --- p.183
Chapter 5.2.2 --- SOE Reforms --- p.185
Chapter 5.2.3 --- Banking Reforms --- p.190
Chapter 5.2.4 --- The Development of Capital Markets --- p.195
Chapter 5.3 --- The Introduction of Securitization in China --- p.201
Chapter 5.3.1 --- General --- p.201
Chapter 5.3.2 --- Stage I (1990s -2004): From Offshore Securitization Deals to Domestic Experiments --- p.202
Chapter 5.3.2.1 --- General --- p.202
Chapter 5.3.2.2 --- Offshore Securitization Deals --- p.202
Chapter 5.3.2.3 --- Domestic Securitization Experiments - NPL Deals --- p.205
Chapter 5.3.3 --- Stage II (2005- present): Pilot Securitization Programs in China --- p.207
Chapter 5.3.3.1 --- The Emergence of the Interbank Securitization Market --- p.207
Chapter 5.3.3.2 --- Securitization by Non-Financial Institutions: Special Asset Management Plan (SAMP) --- p.215
Chapter 5.4 --- Legal Framework for Securitization in China --- p.220
Chapter 5.4.1 --- General --- p.220
Chapter 5.4.2 --- Stage I: (1990s -2004) --- p.221
Chapter 5.4.2.1 --- Specific SPV Issues --- p.221
Chapter 5.4.2.2 --- True Sale --- p.223
Chapter 5.4.2.3 --- Transfer of Security Interests --- p.224
Chapter 5.4.2.4 --- Tax and Accounting Issues --- p.227
Chapter 5.4.3 --- Stage II: 2005 - Present --- p.228
Chapter 5.4.3.1 --- The Legal Framework for the Interbank Securitization Market --- p.228
Chapter 5.4.3.2 --- The Legal Framework for SAMPs --- p.249
Chapter 5.5 --- Problems of A Sustainable Development of Securitization in China in Light of --- p.the
Chapter Global --- Financial Crisis --- p.254
Chapter 5.5.1 --- General --- p.254
Chapter 5.5.2 --- Insufficient Information Disclosure --- p.255
Chapter 5.5.3 --- Overreliance on Rating Agencies --- p.257
Chapter 5.5.4 --- Moral Hazard Problem --- p.259
Chapter 5.6 --- Conclusion --- p.260
Chapter Chapter 6 --- Sustainable Securitization Disclosure Regulation in China: Status, Problems, and Suggestions --- p.262
Chapter 6.1 --- Introduction --- p.262
Chapter 6.2 --- Disclosure Regulations in China’s Interbank Securitization Market --- p.264
Chapter 6.2.1 --- General --- p.264
Chapter 6.2.2 --- Parties Responsible for the Information Disclosure --- p.267
Chapter 6.2.2.1 --- The Legal Framework --- p.267
Chapter 6.2.2.2 --- Problems of the Legal Framework --- p.271
Chapter 6.2.2.3 --- Suggestions --- p.272
Chapter 6.2.3 --- Disclosure Requirements related to Prospectuses --- p.273
Chapter 6.2.3.1 --- General --- p.273
Chapter 6.2.3.2 --- Information on Transaction Parties --- p.275
Chapter 6.2.3.3 --- Information on Transaction Structures and Asset-Backed Securities --- p.277
Chapter 6.2.3.4 --- Information on the Underlying Assets --- p.281
Chapter 6.2.4 --- Ongoing Reporting --- p.289
Chapter 6.2.4.1 --- General --- p.289
Chapter 6.2.4.2 --- The Legal Framework --- p.290
Chapter 6.2.4.3 --- Problems of the Legal Framework --- p.291
Chapter 6.2.4.4 --- Legal Practice and Problems --- p.292
Chapter 6.2.4.5 --- Suggestions --- p.293
Chapter 6.2.5 --- Disclosure in Relation to Credit Ratings --- p.295
Chapter 6.2.5.1 --- General --- p.295
Chapter 6.2.5.2 --- The Legal Framework --- p.295
Chapter 6.2.5.3 --- Problems of the Legal Framework --- p.296
Chapter 6.2.5.4 --- Legal Practice and Problems --- p.296
Chapter 6.2.5.5 --- Suggestions --- p.297
Chapter 6.2.6 --- General Principles --- p.297
Chapter 6.2.6.1 --- General --- p.297
Chapter 6.2.6.2 --- The Legal Framework --- p.298
Chapter 6.2.6.3 --- Problems of the Legal Framework --- p.299
Chapter 6.2.6.4 --- Legal Practice and Problems --- p.300
Chapter 6.2.6.5 --- Suggestions --- p.302
Chapter 6.3 --- A Feasible Disclosure Approach for China’s Securitization Regulation --- p.311
Chapter 6.3.1 --- General --- p.311
Chapter 6.3.2 --- The Transferability of Foreign Disclosure Models to China --- p.311
Chapter 6.3.2.1 --- Legal Transplants --- p.311
Chapter 6.3.2.2 --- Transplanting Foreign Disclosure Models to China --- p.315
Chapter 6.3.3 --- A Hybrid of Disclosure Based and Merit Based System --- p.319
Chapter 6.3.3.1 --- General --- p.319
Chapter 6.3.3.2 --- Merits of Merit Based Approach for China’s Securitization Regulation --- p.320
Chapter 6.3.3.3 --- Excursus: Improving Current Merit Based System --- p.323
Chapter 6.4 --- The Implementation of Disclosure Regulation --- p.325
Chapter 6.5 --- Conclusion --- p.328
Chapter Chapter 7 --- Final Remarks --- p.330
Reference List --- p.336
Chapter Part I. --- Chinese-Language Literature and Legal Instruments --- p.336
Chapter 1. --- Books, Book Chapters and Articles --- p.336
Chapter 2. --- ABS Prospectuses, Trustee Reports, and Credit Rating Reports --- p.341
Chapter 3. --- Chinese Laws and other Legal Instruments --- p.342
Chapter a. --- Laws by the National People’s Congress and Its Standing Committee --- p.342
Chapter b. --- Administrative Regulations by the State Council and Departmental Administrative Rules by the Ministries --- p.344
Chapter Part II. --- English-Language Literature and Legal Instruments --- p.348
Chapter 1. --- Books, Book Chapters and Articles --- p.348
Chapter 2. --- Laws and Other Legal Instruments --- p.375

Rajesh Chakrabarti gives an overview of the financial sector in India. For him a financial system is akin to the circulatory system in the human body, tapping and transporting savings throughout the economy, with markets and banks being the two competing and complementary arteries. The Indian financial system ranks slightly below the median in World Economic Forum rankings but has virtually re-booted since the still ongoing liberalization started in 1991. The four pillars of a financial system—laws, technology, creditors’ rights and corporate governance—have all undergone and are still undergoing major transformations. Financial access and inclusion remain key challenges despite serious efforts and experimentation. The banking system is stable, public-sector dominated, fragmented and heavily regulated. Financial markets have witnessed a sea-change but still have limited liquidity. The corporate bond market—key for much-needed infrastructure financing—remains seriously underdeveloped. The regulatory system is fragmented, rule-based and generally speaking quite conservative. Globalization of the financial system has been steadily increasing with time and while not the most innovation-friendly in the world, it has succeeded in providing stability and averting crises in an increasingly turbulent global financial environment. Aadhaar and big-data based fintech has the potential for inclusive innovations. The chapter’s focus on the institutional and legal base brings out the deep seated transformational changes taking place that perhaps need more time to fructify in increasing domestic savings, allocating them better while reducing the cost of credit, improving its availability and encouraging entrepreneurship.

Since the 1980s, two severe global waves of sovereign defaults have occurred in less developed countries (LDCs): the LDC defaults in the 1980s and the LDC defaults at the turn of the 21st century. To date, the topic is contemporary, while the forecasting and monitoring results of debt crises are still at a preliminary stage. This chapter explores whether the application of the Self-Organizing Map (SOM), a neural network-based visualization tool, facilitates the monitoring of multidimensional financial data. Thus, this chapter presents a SOM model for visualizing the evolution of sovereign debt crises’ indicators. The results of this chapter indicate that the SOM is a feasible tool for visualization of early warning signals of sovereign defaults.

The purpose of the chapter is to find out the meaning of the sustainable development in the post-industrial society in the first half of the 21st century. The financial crisis that started in 2008 is an indicator of how short-term profitability mindsets and related strategies, policies and actions of individuals and individual organizations can cause global economic, ecological and ethical crises. These events have contributed to the judgement that most organizations operate on business models that are not sustainable. The conceptual content contributes to the ongoing discussion about the increasingly important role of sustainable development as a major concern for the profit and non-profit sector that wish to develop the policies that will enable low but sustainable growth of society.

Neoliberalism, based on laissez-faire market ideas, had reached its social policy limits long before the financial crises of 2008. The ‘new social risks’ faced by citizens in post-industrial society led policymakers to rethink what social and economic relations should look like in the 21st century. In this volume we argue that new ideas about social investment and inclusive growth could mark a turning point in social policy.

Abstract Banking and insurance share an origin but have distinct evolutionary paths. First, this chapter traces the history of both sectors from their shared origins to the transformations brought by industrialization, crises, and state regulation. Then the chapter compares the dynamics in both industries focusing on risk, regulation, and societal and technological changes. Managing risk is the main dynamic that shaped both banking and insurance from the very start. Regulation introduced external risk management and turned out to be the single most influential dynamic. Shifts in social strata significantly shaped product offerings and uptake from the 18th century on, as lower-income households became able to save up. Recently, digital access further ‘democratized’ financial services. In the final part, the chapter assesses the future of the insurance and banking industry in light of the dramatic changes of the early 21st century, suggesting that the traditional distinction between the two is becoming less useful. This is not so much due to their convergence but to the addition of alternative providers both from within and from outside the financial sector.

The banking sector is the backbone of the country's economy, where ongoing processes significantly determine the financial stability of the country. In the modern world, this topic does not lose its relevance, moreover, it is becoming more and more the center of attention. As it is known, Georgia is a developing country, where the largest share of the financial sector belongs to the banking sector. Community life, including primarily the business sector, which significantly depends on the effective functioning of the credit sector. The article is dedicated to modern trends, first of all the Covid-19 pandemic the biggest challenge of the 21st century, because of it the banking sector faced the biggest challenges and completely changed the credit environment. The article reflects the reality of whether the Georgian banking sector is ready to deal with various types of financial crises in the changing environment.