The Global Financial Crisis: what have we learned so far?

Neuhauser, Karyn

doi:10.1108/ijmf-02-2015-0014

Cited by 14 publications

(6 citation statements)

References 82 publications

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“…The underlying reasons behind crises are unethical business practices such as mismanagement of risk, imprudent mortgage lending, debt default, inappropriate transparency, complex financial instruments and human frailty (Hassan and Kayed, 2009). Neuhauser (2015) unveils that main causes of recent financial crisis are failure of credit rating agencies and housing bubble driven by huge subprime lending in the USA. As ethics are linked with survivability [1], crisis has enforced the consideration of ethics in financial system.…”

Section: Introductionmentioning

confidence: 99%

How Islamic is Islamic banking in Pakistan?

Majeed

Zainab

2017

IMEFM

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Purpose Increasing popularity of Islamic banks in the wake of recent global financial crisis of 2008 has generated debate among researcher about practicality of Islamic banks. Critics argue that Islamic banks are not working according true spirits of Sharia’h. This paper aims to empirically address the question that how Islamic is Islamic banking in the case of Pakistan. Design/methodology/approach The target population in this paper is staff at the Islamic banks who are employees and managers. Data are also collected from customers to analyze their views. Sample comprises 63 branches of five full-fledge Islamic banks and five Islamic branches of conventional banks in Islamabad. For analysis purpose, the study uses exploratory factor analysis. Findings Findings indicate that Islamic banks are following Sharia’h excluding the provision of profit loss sharing contracts and provision of qard-ul-hassan. Moreover, it is found that customers are less agreed and more neutral about Sharia’h-based operations at Islamic banks. Originality/value Findings will help regulators to introduce wide range of Islamic financial contracts that involve profit loss sharing and consider the expansion of emerging industry. Moreover, findings suggest to consider promotional techniques to create awareness of Islamic banking among the customers.

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Section: Introductionmentioning

confidence: 99%

How Islamic is Islamic banking in Pakistan?

Majeed

Zainab

2017

IMEFM

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“…One of the main reasons for this situation is the global financial crisis (GFC) of [2007][2008], which had a negative impact not only on the financial markets (NEUHAUSER 2015), but also on the property market. The housing market was weakened on a global scale (WANG and ZHANG 2013;KUCHARSKA-STASIAK and ŹRÓBEK 2015) and, therefore, also societies.…”

Section: Introductionmentioning

confidence: 99%

“…The housing market was weakened on a global scale (WANG and ZHANG 2013;KUCHARSKA-STASIAK and ŹRÓBEK 2015) and, therefore, also societies. After a wave of corporate bankruptcies caused by the housing bubble, including Bear Stearns in 2007and Lehman Brothers in 2008(NEUHAUSER 2015, businesses are now monitored more often, especially in the United States and Europe, where public bodies and non-governmental organizations (NGOs) have become involved in this area. The GFC proved that "the financing of real estate development activity is often higher up the risk curve for investors" (SQUIRES et al 2016, p. 55).…”

Section: Introductionmentioning

confidence: 99%

Socially Responsible Property Investment in Cities – Between Economic Reasoning and Social Obligations

Brodowicz

2017

Real Estate Management and Valuation

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This article focuses on socially responsible property investment (SRPI), which is an investment estimated not only to bring financial gain but also social and environmental benefits. The theoretical part of the paper draws on existing literature on responsible investment. The empirical part discussed in this article is based on original research conducted by the author. Starting with a global and regional overview, the query was narrowed down to a national level (Poland) with a case study of the capital -Warsaw. The overarching research problem was described as follows: How are SRPI principles manifested and implemented by investors in the commercial real estate market? Additionally, investigation was supported by numerous questions regarding the interest in SRPI and an understanding of its principles and benefits among investors. Research goals were pursued based on primary and secondary data sources regarding existing and planned SRPI projects within the commercial real estate industry. Results indicate that there is a disparity between declared support for SRPI and market practice. At the conceptual level, there is an understanding of responsible investment principles and will to conduct such projects. However, commercial property practice proves a different reality with primary focus on green buildings, while the social factor is missing.

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“…They find that during the financial crisis period of 2007-2009, the spreads and price impacts of bank holding company (BHC) stocks were significantly higher than comparable non-banks, indicating a sharp increase in the relative opaqueness of the banking firms. Neuhauser (2015) provides a review of major findings in the literature on the Global Financial Crisis of 2008. Neuhauser points out that those severe problems were created because of the interrelationships between the mortgage markets and financial markets created by large-scale securitization of financial assets.…”

Section: Literature Review and Hypothesis Formationmentioning

confidence: 99%

The effect of holding company affiliation on bank risk and the 2008 financial crisis

Dandapani

Lawrence

Patterson³

2017

SEF

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Purpose The organizational form of financial institutions is related to their level of risk, leverage, liquidity and capitalization. High level of risk and leverage and lower levels of liquidity and capitalization are considered to be the root causes of the 2008 financial crisis. The purpose of this paper is to investigate if banks affiliated to holding company structure contributed more to the root causes of crisis than unaffiliated banks. Design/methodology/approach The paper isolates the effect of holding company association by restricting the sample to one-bank holding companies and individual banks. A comparative analysis of independent and holding company-affiliated banks is performed. Univariate analysis and multivariate regressions are used to compare the risk, leverage, liquidity and capitalization of affiliated and independent banks. Findings The paper finds that holding company affiliation is linked to several root causes of the 2008 financial crisis. Specifically, holding company affiliation results in higher levels of home mortgage loans underwritten and underperforming, higher leverage, lower liquidity and lower capitalization for the subsidiary bank. Practical implications The paper demonstrates that affiliated banks use their higher leveraged positions to engage in riskier home mortgage lending, sacrificing both liquidity and capital adequacy. These findings can help policy makers to focus on the group of banks that are part of holding company affiliation and implement such policies and regulations so as to avoid any re-occurrence of financial crisis. Originality/value This paper is the first to link the structural differences in banks to the root causes of financial crisis and to isolate the effect of holding company affiliation through sample selection. The paper will be valued to other researchers who try to isolate the effect of holding company affiliation and those studying the causes of the financial crisis of 2008.

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The Global Financial Crisis: what have we learned so far?

Cited by 14 publications

References 82 publications

How Islamic is Islamic banking in Pakistan?

How Islamic is Islamic banking in Pakistan?

Socially Responsible Property Investment in Cities – Between Economic Reasoning and Social Obligations

The effect of holding company affiliation on bank risk and the 2008 financial crisis

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