Vietnam national university of economics and business
Impact of the crisis on the international financial system
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Khung-CTDT-TCNH-CLC, Ruot thang 4 (2)-99-102
2.4.2. Impact of the crisis on the international financial systema. Impact on main site The freezing of the financial system continued to lead to a decline in business production as well as people's spending. As a result of the situation, many businesses went bankrupt and unemployment fixed rates in many countries increased, spending and user satisfaction fell to multi-year lows. The situation in the world financial market is as follows: Money market: When the financial crisis broke out, the capital in the world currency market was significantly affected by investors reducing or restructuring investment capital flows. International lines had a sound growth period when Lehman Brothers collapsed. The third quarter of 2008 to the end of the first quarter of 2009 was the period of the strongest decline of international capital flows, also the period of crisis. Besides, capital inflows in the system banks also became the hardest hit capital flows from financial startups, especially in developed countries. Scale activity in cross-border lending in the global banking system decreased in strength during the crisis. The value of off-budget liabilities fell from 59% of GDP at the end of 2007 to 51% in December 2009. In developed countries, capital flows through banks continued to decline during the period. recovery (at the end of 2009), but in developing countries, this capital flow hardly increased but only the strong growth of non-bank capital flows again. Securities market: Many stock markets around the world dropped sharply. Portfolio converters use strong currencies like US dollar, Japanese yen, Swiss franc that have made these currencies appreciate against many others, making it difficult for US exports, Japan, Switzerland and currency disorders in some countries have to ask for help from the IMF. We self-resolved market bubbles by down-critical stocks. In 2008, the global stock market lost about 17,000 Billion USD, of which the emerging country stock market decreased by 54.72%, the developed country market decreased by 42.72%. Real estate market: The financial crisis for real estate mortgage lending in the US has also spread and plagued many big banks in European countries such as Hypo Real real estate lending group. Estate, IKB bank, SachsenLB, DZ Bank, Deutsche Bank of Germany; the 2nd largest bank in Bradford & Bingley (B&B) and the 5th in Northern Rock of the UK to be nationalized; Bank Dexia SA France; Belgian bank Fortis; Iceland's Glitnir Bank; Denmark's Roskilde Bank; financial group Centro Properties of Australia.. Governments of European countries must also step in to save the situation, avoid a financial system breakdown, or economic recession. Many countries have had to declare 100% insurance of individual bank deposits to protect depositors from massive withdrawals. b. Impact on financial institutions Many financial institutions from developed countries, especially European countries, also participate in the secondary housing credit market in the United States. Therefore, the bursting of the US housing bubble also exposes these financial institutions to the same danger as US financial institutions. The European countries with the most financial turmoil were the UK, Iceland, Ireland, Belgium and Spain. The storm of the financial crisis caused by rampant subprime real estate loans has engulfed the banking system of the country that once had the highest per capita income in the world. The Icelandic government had to close the stock market, and nationalize the top banks. Since then, the country's local currency, the krona, has been severely depreciated and almost wiped out. As early as September 2007, the UK's Northern Rock suffered from a "deposit surge" and as a result was subject to nationalization. The sudden withdrawal of deposits also strained other banks in the country. In 2008, it was the turn of Bradford & Bingley plc of the UK to be split into two separate companies. Other banks subject to change of ownership include: Catholic Building Society, Alliance & Leicester, London Scottish Bank and Dunfermline Building Society, which are subject to special supervision by the British Government. In Iceland there was a wide-ranging banking crisis. In the first quarter of 2008, Iceland's GDP fell by 1.5%, the largest decline since 1983 to this point. Glitnir, Straumur Investment Bank, Reykjavík Savings Bank were subject to nationalization. The country's Kaupthing, Landsbanki is subject to the supervision of the national financial supervisory authority. In early 2008, the credit rating of the Irish bank was reduced, causing the bank's share price to plummet, the share price at the beginning of March 2008 fell 99% from its peak price in 2007. In early 2009, Anglo Irish Bank was nationalized. Allied Irish Banks also suffered from severe stock devaluation and had to accept reforms in order to receive a government restructuring loan. At the end of 2008, Belgium's Fortis began to be sold off, leaving only its insurance business divisions. Dexia suffered a loss of 3.3 billion euros and had to ask for a loan from the Belgian government to consolidate. Thus, according to an estimate of the IMF in April 2009, the total asset depreciation of the global financial institution system amounted to 4.1 trillion USD. The total market capitalization of the top 500 banks in the world decreased by 20% in 2009. From August 2007 to February 12, 2009, about 325,000 people lost their jobs at banks, Insurance companies and investment quarters globally, of which 130,000 people (accounting for 40%) lost their jobs from October 2008 to February 2009. In the US, a total of 3 years from 2008 to 2010, the total number of bank failures has reached 322 banks with total assets of over 633 billion USD, equivalent to about 4% of GDP in 2009. tải về 195.42 Kb. Chia sẻ với bạn bè của bạn:
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