Publication
A perspective on the symptoms and causes of the financial crisis
| dc.contributor.author | Cabral, Ricardo | |
| dc.date.accessioned | 2019-01-24T17:31:44Z | |
| dc.date.available | 2019-01-24T17:31:44Z | |
| dc.date.issued | 2011-03 | |
| dc.description.abstract | This article identifies two paradoxes prior to the onset of the financial crisis: banking profits were at historically high levels despite the impending crisis; and though profits were high the profitability of financial intermediation was poor. Using a novel model of banking, it argues that large banks attained high profits through balance sheet expansion and growing mismatches between assets and liabilities. As a result, large banks’ financial leverage rose while their liquidity structure worsened, setting the conditions for a systemic banking crisis. Finally, this article argues that this conduct and performance was only possible due to misguided changes to the regulatory framework, specifically the Basel I Capital Accord and reductions in reserve requirements. | en |
| dc.description.version | N/A | pt_PT |
| dc.identifier.citation | Cabral, Ricardo (2011). A perspective on the symptoms and causes of the financial crisis, “Working Paper Series” nº 9/11, 49 pp.. Ponta Delgada: Universidade dos Açores, CEEAplA-A. | pt_PT |
| dc.identifier.uri | http://hdl.handle.net/10400.3/4970 | |
| dc.language.iso | eng | pt_PT |
| dc.publisher | Universidade dos Açores | pt_PT |
| dc.subject | Banking | en |
| dc.subject | Basel Capital Accords | en |
| dc.subject | Financial Crisis | en |
| dc.subject | Financial Intermediation | en |
| dc.subject | Reserve Requirements | en |
| dc.title | A perspective on the symptoms and causes of the financial crisis | en |
| dc.type | working paper | |
| dspace.entity.type | Publication | |
| oaire.citation.conferencePlace | Ponta Delgada, Açores | pt_PT |
| oaire.citation.endPage | 49 | pt_PT |
| oaire.citation.startPage | 1 | pt_PT |
| oaire.citation.title | CEEAplA-A - Working Paper Series | pt_PT |
| person.familyName | Cabral | |
| person.givenName | Ricardo | |
| person.identifier.ciencia-id | F615-F415-C3E4 | |
| person.identifier.orcid | 0000-0002-1996-1333 | |
| person.identifier.rid | T-6847-2017 | |
| person.identifier.scopus-author-id | 36937639800 | |
| rcaap.rights | openAccess | pt_PT |
| rcaap.type | workingPaper | pt_PT |
| relation.isAuthorOfPublication | ebfc85ef-1aa0-42b6-b928-9165692b0fa3 | |
| relation.isAuthorOfPublication.latestForDiscovery | ebfc85ef-1aa0-42b6-b928-9165692b0fa3 |