Banking Behaviour in Large-Scale Crises:: Lessons from History
- Autores: Elisabeth Paulet, Miia Parnaudeau, Tamym Abdessemed
- Localización: Journal of European Economic History, ISSN 0391-5115, Vol. 43, Nº. 1, 2014, págs. 1-33
- Idioma: inglés
- Enlaces
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Resumen
This paper aims to explore the way banks modified their behaviour after the subprime crisis. Historical evidence suggests that enhanced regulation requirements generally follow important financial reversals.
Accordingly, a comparison between (1927-1931) and (2006- 2009) periods is made. Despite the considerable differences between the 1929 depression and the subprime crisis, banking practices for those two periods were widely affected. By learning lessons from past experience, the purpose is to distinguish between coercion and deliberate strategy. The statistical analysis of the economic and financial impacts that has been carried out for both periods has enabled discussion of notions of resistance and profitability in banks. Finally, we provide evidence that during these crises, changes in strategies are rather proactive. Imposed regulatory constraints do not appear to have been the prime driver of the strategic management of banks
