Saint-Petersburg State University of Economics Université Paris-Dauphine The European Debt Crisis and its impact on the Global Banking System Chernaia Vladislava Zaichik Alina Saint-Petersburg 2014
Saint-Petersburg State University of Economics Université Paris-Dauphine Main Objectives 1. Debt crisis as a part of financial crisis 2. Connection between debt crisis, banking crisis and exchange crisis 3. Connection between banking crises and macroeconomic situation of the European countries 4. Development of debt crisis 5. Measures , implemented in order to meet the crisis 6. Results of the measures 2
Saint-Petersburg State University of Economics Université Paris-Dauphine Exchange crisis Banking crisis Debt crisis Financial crisis 3
Saint-Petersburg State University of Economics Université Paris-Dauphine What is debt crisis? «It is an excessive accumulation of debt that can not be repaid by the state in the nearest future. And as a result the country is forced to declare a moratorium on payment of debt or restructuring this debt. That’s why the credit rating of the country significantly falls. » 4
Saint-Petersburg State University of Economics Université Paris-Dauphine Common currency causes slowing down of the growth of the economy 5
Saint-Petersburg State University of Economics Université Paris-Dauphine High inflation Low GDP High budget deficit Banking crisis 6
Saint-Petersburg State University of Economics Université Paris-Dauphine Summit EU - increase of additional reserves by 9% - financial stabilization framework - threshold is minimum 9% for banks’ own funds through recapitalization 7
Saint-Petersburg State University of Economics Université Paris-Dauphine Greece Portugal Ireland Italy Spain Cyprus 8
Saint-Petersburg State University of Economics Université Paris-Dauphine banking recapitalization program sovereign loan preventive financial assistance primary market assistance European Stabilization Mechanism secondary market assistance 9
Saint-Petersburg State University of Economics Université Paris-Dauphine Banking Union + the rate for oneday deposit decreased from 0, 25% to 0% base interest rate is reduced from 1% to 0, 75% European Central Bank (ECB) 10
Saint-Petersburg State University of Economics Université Paris-Dauphine Resume • debt crisis is closely connected with financial, exchange and banking crisis as well as with macroeconomic situation of the country • the European debt crisis had started in Greece in 2010 • the EU government had to take some measures to prevent spreading of the crisis • the results weren’t impressive 11
Saint-Petersburg State University of Economics Université Paris-Dauphine Thank you for attention! 12
Скачать презентацию Saint-Petersburg State University of Economics Université Paris-Dauphine The
англ.pptx