Fighting the crisis, the field of global banking is confronted with many difficult questions. Will banks survive or non bank financial institutions will dominate what has traditionally been defined as international banking? Will the new technology make the banker obsolete? One thing is clear “the good old days” are over and this thanks to deregulation, globalization and increasing competition from non bank sources of capital. To resist in a world in recession, the bank business requires a mix of new technical, financial and managerial skills and many sacrifices, costs and profits reductions, unheard a decade ago. In addition, more capital injections and guarantee may be necessary to cover the enormous losses and to ensure stability. The government injections of capital and public purchases of troubled assets, the asset guarantees are some of the government responses around the world for the recovery. Even the traditional European universal bank model is now under considerable pressure to change. Universal banks are forced to reconsider downsizing large personnel rolls, shedding numerous branches, seeking for best talents, be it through mergers or by firing redundant personnel and new technology acquisitions. The advent of the Euro, now at the 10th anniversary, eliminated an important source of easy profits for speculators and protected better against crisis inside the Euro zone. Facing up the new challenges and reality, the recently integrated European countries are making serious efforts to improve competitiveness, seeking out new strategies in order to adopt earlier the Euro.
Volume (Year): 12 (2009)
Issue (Month): 31 ((1))
|Contact details of provider:|| Postal: 6 ROMANA PLACE, 70167 - BUCHAREST|
Web page: http://www.rei.ase.ro/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:rej:journl:v:12:y:2009:i:31:p:31-42. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Radu Lupu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.