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The Global Financial Crisis and the Behaviour of Short-Term Interest Rates International and Serbian Aspects

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  • Đorđe Đukić

    () (Faculty of Economics University of Belgrade, Serbia)

  • Mališa Đukić

    () (Belgrade Banking Academy Union University, Serbia)

Abstract

Throughout the current global financial crisis the market has continued to fall due to a lack of confidence of those banks that are not yet prepared to lend on the interbank money market. For instance, the negative repercussions of the crisis onto the Serbian financial sector have created a number of issues including a significant increase in lending rates, a difficulty, or impossibility, for the corporate sector to use cheap cross-border loans and a reduction in the supply of foreign exchange on that basis. The inability of the National Bank of Serbia to follow the aggressive reduction of the key interest rate that has been implemented by central banks in developed countries, partly explains the lack of a decline in short-term interest rates by the Serbian banking industry. The first section of the paper focuses on the effects of the financial crisis through the behaviour of short-term interest rates in the US and Europe, while the second section gives an estimation of the effects of the global financial crisis on interest rates in the banking industry in Serbia.

Suggested Citation

  • Đorđe Đukić & Mališa Đukić, 2009. "The Global Financial Crisis and the Behaviour of Short-Term Interest Rates International and Serbian Aspects," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(4), pages 491-506, December.
  • Handle: RePEc:voj:journl:v:56:y:2009:i:4:p:491-506
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    References listed on IDEAS

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    Cited by:

    1. Choudhry, Taufiq, 2016. "Time-varying risk premium yield spread effect in term structure and global financial crisis: Evidence from Europe," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 303-311.
    2. Đorđe Đukić & Mališa Đukić, 2011. "The Influence of Interbank Money Market Stress Levels on Credit Markets During the Postcrisis Period in US And Euro Area," Economic Annals, Faculty of Economics, University of Belgrade, vol. 56(189), pages 7-26, April – J.

    More about this item

    Keywords

    World; Financial crisis; Short-term interest rates; International and domestic aspects;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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