POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.
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Transcript of POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.
![Page 1: POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ede5503460f94bef17d/html5/thumbnails/1.jpg)
POLITICAL ECONOMY OF GLOBAL BANKING CRISES
MUSTAFA AKAYDINHALİL BÜLBÜL
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REASONS OF GLOBAL BANKING CRISIS
• United States housing bubble.• Higher interest rates in adjustable rate
mortgages.• Increase in loan incentives.• Easy credit conditions.• Sub-prime lending.• Predatory lending.• Deregulation.• Over-leveraging.
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US Current Account on Trade Deficit
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REASONS OF GLOBAL BANKING CRISIS
• United States housing bubble.• Higher interest rates in adjustable rate
mortgages.• Increase in loan incentives.• Easy credit conditions.• Sub-prime lending.• Predatory lending.• Deregulation.• Over-leveraging.
![Page 5: POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ede5503460f94bef17d/html5/thumbnails/5.jpg)
US Subprime Lending Expanded Significantly 2004-2006
![Page 6: POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ede5503460f94bef17d/html5/thumbnails/6.jpg)
REASONS OF GLOBAL BANKING CRISIS
• United States housing bubble.• Higher interest rates in adjustable rate
mortgages.• Increase in loan incentives.• Easy credit conditions.• Sub-prime lending.• Predatory lending.• Deregulation.• Over-leveraging.
![Page 7: POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ede5503460f94bef17d/html5/thumbnails/7.jpg)
Leverage Ratios for Major Investment Banks
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COMPARING THE RECENT CRISIS TO THE PAST
• 2008-2009 banking crisis far exceeds from past crises.
• Current banking crisis is much larger than the Great Depression in scale.
• More bank branches in 2008-2009 banking crisis than Great Depression.
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COMPARING THE RECENT CRISIS TO THE GREAT DEPRESSION
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U.S. Bank Failures, 1970-2009
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U.S. Bank Failures, 1930-2009
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Assets of Failed Banks and GDP
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Assets of Failed Banks and GDP
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Assets of Failed Banks and GDP
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EFFECTS OF GLOBAL BANKING CRISIS
• Impact in the USA• Unemployment• Poverty• Prices• Private and Public Transfers• Assets and Goods and Services• Effects on Developing Countries
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Impact in the USA
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Impact in the USA
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EFFECTS OF GLOBAL BANKING CRISIS
• Impact in the USA• Unemployment• Poverty• Prices• Private and Public Transfers• Assets and Goods and Services• Effects on Developing Countries
![Page 19: POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ede5503460f94bef17d/html5/thumbnails/19.jpg)
World map of countries by rate of unemployment
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EFFECTS OF GLOBAL BANKING CRISIS
• Impact in the USA • Unemployment• Poverty• Prices• Private and Public Transfers• Assets and Goods and Services• Effects on Developing Countries
![Page 21: POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ede5503460f94bef17d/html5/thumbnails/21.jpg)
Impact of global financial crisis on poverty
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EFFECTS OF GLOBAL BANKING CRISIS
• Impact in the USA • Unemployment• Poverty• Prices• Private and Public Transfers• Assets and Goods and Services• Effects on Developing Countries
![Page 23: POLITICAL ECONOMY OF GLOBAL BANKING CRISES MUSTAFA AKAYDIN HALİL BÜLBÜL.](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ede5503460f94bef17d/html5/thumbnails/23.jpg)
Effects on Developing Countries
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SOLUTIONS OF GLOBAL BANKING CRISIS
• Deposit Insurance• Bank Support• Prompt Closure and Payout
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