WHAT ROLE HAVE BANKS IN FINANCIAL CRISES? Cover Image

WHAT ROLE HAVE BANKS IN FINANCIAL CRISES?
WHAT ROLE HAVE BANKS IN FINANCIAL CRISES?

Author(s): Alin-Marius Andrieş
Subject(s): Economy
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: financial crises; bank crises; contagion

Summary/Abstract: Financial crises mainly manifest themselves at the level of financial institutions. Although financial crises can also be generated within non-financial institutions, the role of banking institutions in the occurrence, transmitting and solving of financial crises is a deciding one. Banks play a deciding role in the development of financial crises as financial intermediaries who contribute to the efficient transfer of funds from the abundant agent towards the deficit agents. Banks can facilitate the financial crises through the activities performed on the financial markets that can influence the interest rates, the uncertainty on the market and the price of assets, but moreover bank crises can occur that transform financial crises. This paper aims to analyze the role of banks in the emergence, the propagation, the prevention or solving financial crises.

  • Issue Year: 2009
  • Issue No: 3
  • Page Range: 149-159
  • Page Count: 11
  • Language: English
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