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What Role Have Banks in Financial Crises?

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  • Alin Marius ANDRIES

    (Alexandru Ioan Cuza University of Iasi)

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.

Suggested Citation

  • Alin Marius ANDRIES, 2009. "What Role Have Banks in Financial Crises?," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 3, pages 149-159, May.
    • Handle: RePEc:aic:revebs:y:2009:i:3:andriesa
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    References listed on IDEAS

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    More about this item

    Keywords

    financial crises; bank crises; contagion;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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