Muhammad Ather Elahi
| Date of PhD defense: | 4 March 2011 |
| Title of thesis: | Essays on Financial Fragility |
| ISBN: | 978 90 5668 274 3 |
| Promotor: | Prof.dr. Hans Degryse
Dr. Marķa Fabiana Penas |
Abstract:
Many financial crises that started as an idiosyncratic shock to local banks, securities or markets, eventually spread to markets with no direct economic linkage to the initial shock. For example, the financial turmoil in the US-mortgage market that started as a local problem in the summer of 2007 has become a global concern for financial stability. These concerns are shared equally among policy makers and researchers. Therefore, an empirical investigation on how local turmoil tends to spillover into international markets and the ensuing consequences on regional financial fragility is the need of the day. Moreover, banks being the most important pillar of financial stability have attracted the most research attention. This is due to the fact that the instability of the banking sector has brought severe financial costs to the economy. Further, banking system fragility impairs the functioning of the payment system that may ultimately lead to economic stagnation. A fragile banking system affects neighboring countries in the region through cross-border linkages and raises concerns for regional banking system fragility. This thesis provides an insight on regional banking system fragility and the potential of cross-border contagion.
Global / English