Financial Crises in the 1990s in the Light of Financial Regulations

Öz

The financial crises that occurred in the world economy during the 1990s brought along the financial regulation debates. In this context, this study analyzes the role of financial regulatory failures in financial crises based on country experiences. The study analyzes the Scandinavian, Mexican and East Asian crises within the framework of financial regulation and emphasizes the consequences and resolution processes. The study reveals that the factors that led to regulatory failures differed across countries. In the countries analyzed, regulatory failures have been found to pave the way for financial crises by causing moral hazard problems and rent-seeking activities, and it is concluded that regulatory failures are caused by a lack of knowledge and experience and the manipulation of economic forces on the regulatory process.

Anahtar Kelimeler

• Financial Regulations
• Financial Crisis
• Moral Hazard

Finansal Regülasyonlar Işığında 1990’lı Yıllarda Yaşanan Finansal Krizler

Öz

1990'lı yıllarda dünya ekonomisinde yaşanan finansal krizler, finansal düzenleme tartışmalarını da beraberinde getirmiştir. Bu bağlamda, bu çalışma finansal düzenleme başarısızlıklarının finansal krizlerdeki rolünü ülke deneyimlerinden yola çıkarak analiz etmektedir. İskandinavya, Meksika ve Doğu Asya krizlerini finansal düzenleme çerçevesinde analiz eden çalışma, krizlerin sonuçları ve çözüm süreçleri üzerinde durmaktadır. Çalışma, düzenleme başarısızlıklarına yol açan faktörlerin ülkeler arasında farklılaştığını ortaya koyuyor. İncelenen ülkelerde düzenleme başarısızlıklarının ahlaki tehlike sorunlarına ve rant kollama faaliyetlerine yol açarak finansal krizlere zemin hazırladığı tespit edilmiş, düzenleme başarısızlıklarının bilgi ve tecrübe eksikliği ile ekonomik güçlerin düzenleme süreci üzerindeki manipülasyonundan kaynaklandığı sonucuna ulaşılmıştır.

Anahtar Kelimeler

• Finansal Regülasyon
• Finansal Kriz
• Ahlaki Çöküntü

Kaynakça

1. Bazdresch, C. & Levy, S. (1991). Populism and Economic Policy in Mexico, 1970-1982. The Macroeconomics of Populism in Latin America, p. 233.
2. Benmelech, E. & Dvir, E. (2013). Does Short-Term Debt Increase Vulnerability to Crisis? Evidence from the East Asian Financial Crisis. Journal of International Economics. 89(2), 485-494.
3. Boorman, J., Timothy, L., Marianne S.G., Ales B., Atish R.G., Javier H., Alexandros M. & Steven P. (2000). Managing Financial Crises: The Experience in East Asia, IMF Working Paper, No.107.
4. Brownbridge, M. & Kirkpatrick, C. (1999). Financial Sector Regulation: The Lessons of the Asian Crisis. Finance and Development Research Programme Working Paper Series, 2(12).
5. Bustelo, P. (1998). The East Asian Financial Crisis: An Analytical Survey. ICEI Working Papers, No.10.
6. Caprio, G. & K. (2003). Episodes of Systemic and Borderline Financial Crises. World Bank Research Paper.
7. Chen, H., Jonung, L. & Unteroberdoerster, O. (2009). Lessons for China From Financial Liberalization in Scandinavia. Eurpean Economy Economic Papers, No. 383.
8. Claessens, S., Djankov, S. & Klingebiel, D. (1999). Financial Restructring in East Asia: Halfway There?. Financial Sector Discussion Paper, No. 3.

9. Copelman, M. (2000). Financial Structure and Economic Activity in Mexico. Center of Analysis and Economic Research ITAM.
10. Dekle, R. & Kletzer, K. (2000). Domestic Bank Regulation and Financial Crises: Theory and Empirical Evidence from East Asia. Preventing Currency Crises in Emerging Markets, Eds. Sebastian Edwards ve Jeffrey A. Frankel, University of Chicago Press, pp. 530-533.
11. Desmet, K. (2000). Accounting for the Mexican Banking Crisis. Emerging Markets Review, No.1, 165-181.
12. Drees, B. & Pazarbaşıoğlu, C. (1995). The Nordic Banking Crises: Pitfalls in Financial Liberalization?. IMF Working Paper, 95(61).
13. Englund, P. (1999). The Swedish Banking Crisis: Roots and Consequences. Oxford Review of Economic Policy, 15(3), 80-97.
14. Englund, P. (2015). The Swedish 1990s Banking Crisis A revisit in the Light of Recent Experience. YPFS Document (Series),Yale University.
15. Goldstein, M. (1998). The Asian Financial Crisis: Causes, Cures and Systemic Implications. Policy Analyses In International Economics, No. 55.
16. Grenet, J. & Grönqvist, H. & Jahnson, D. (2022). Financial Crisis and Long-Run Labor Demand: Evidence from the Swedish Banking Crisis in the Early 90s. Paris School of Economics, Working Paper No 2023-02.
17. Gruben, W. C. & McComb, R. (1997). Liberalization, Privatization and Crash: Mexico’s Banking System in the 1990’s. Federal Reserve Bank of Dallas Economic Review, First Quarter.
18. Haber, S. (2005). Mexico’s Experiments with Bank Privatization and Liberalization, 1991-2003. Journal of Banking & Finance. No. 29, 2325-2353.
19. Hernandez--Murillo, R. (2007). Experiments in Financial Liberalization: The Mexican Banking Sector. Federal Reserve Bank of St. Louis Review. 89(5), 415-432.
20. Honkapohja, S. (2009). The 1990’s Financial Crises in Nordic Countries. Bank of Finland Research Discussion Papers. No. 5.
21. Honkapohja, S. (2014). Financial Crises: Lessons from the Nordic Experience. Journal of Financial Stability 13, 193-201.
22. Hoyos, L. M. (2021). Mexico Peso Crisis (1994-95): Procapte. Journal of Financial Crises. 3(3), 474-497.
23. Jonung, L. (2009). Twelve Lessons from the Nordic Experience of Financial Liberalization. The Great Financial Crisis in Finland and Sweden: The Nordic Experience of Financial Liberalization.
24. Kawai, M. (2000). The Resolution of the East Asian Crisis: Financial and Corporate Sector Restructuring. Jorunal of Asian Economics. No. 11.
25. Kokko, A. & Suzuki, K. (2009). The Nordic and Asian Crises: Common Causes, Different Outcomes. The Nordic Experience of Financial Liberalization.
26. Kohler, M. (2010). Exchange Rates During Financial Crises. BIS Quarterly Review. https://ssrn.com/abstract=1561579
27. Krugman, P. (2010). The Return of Depression Economics and the Crisis of 2008. 6. Ed. Literatür Yayınları.
28. Lee, N. (2001). The Political Economy of Banking Restruction in Mexico. The Asian Journal of Latin American Studies. 143-172.
29. Lindgren, C., Balino, T., Enoch, C., Gulde, A., Quintyn, M. & Teo, L. (1999). Financial Sector Crisis and Restructuring Lessons from Asia. IMF Occassional Paper, No. 188.
30. Mai, N. (2008). Lessons from the 1990’s Scandinavian Banking Crises. JP Morgan Global Data Watch. 11-14.
31. McQuerry, E. (1999). The Banking Sector Rescue in Mexico. Federal Reserve Bank of Atalanta Economic Review. 14-29.
32. Miller, M. & Luangaram, P. (1998). Financial Crisis in East Asia: Bank Runs, Asset Bubbles and Antidotes. CSGR Working Paper, No.11.
33. Montes-Negret, F. & Landa, L. (2001). Interest Rate Spreads in Mexico During Liberalization. Cambridge University Press.
34. Musacchio, A. (2012). Mexico’s Financial Crisis of 1994-1995. Harvard Business School Working Paper, 12(101).
35. Perng, F. N. (2022). The Mexican Peso Crisis. Springer Books, Encyclopedia of Finance, Springer.
36. Pretorius, A. & Beer, J. (2014). Comparing The South African Stock Markets Response to Two Periods of Distinct Instability The 1997-98 East Asian and Russian Crisis And The Recent Global Financial Crisis. International Business & Economics Research Journal. 13(3), 427-442.
37. Radelet, S. & Sachs, J.D. (1998). The Onset of the East Asian Financial Crisis. Harvard Institute for International Development.
38. Radelet, S. & Sachs, J.D. (1998). The East Asian Financial Crisis: Diagnosis, Remedies, Prospects. Brooking Papers on Economic Activity. 29(1).
39. Roberts, K. M. (2017). Party Politics in Hard Times: Comparative Perspectives on the European and Latin American Economic Crises. European Journal of Political Research. 56(2), 218-233.
40. Rosenbluth, F. & Schaap, R. (2003). The Domestic Politics of Banking Regulation. International Organization. 57(2): 307-336.
41. Sandal, K. (2004). The Nordic Banking Crisis in the Early 1990’s-Resolution Methods and Fiscal Costs. Norges Banks Skriftserie Occasional Papers, No. 33.
42. Song, K. & Lee, Y. (2012). Long-Term Effects of a Financial Crisis: Evidence from Cash Holdings of East Asian Firms. Journal of Financial and Quantitative Analysis. 47(3), 617-641.
43. Steigum, E. (2004). Financial Deregulation with a Fixed Exchange Rate: Lessons from Norway’s Boom-Bust Cycle and Banking Crisis. Norges Banks Skriftserie Occasional Papers. No. 33.
44. The World Bank. (2005). Economic Growth in the 1990’s: Learning from a Decade of Reform. The World Bank Report.
45. Thomas, F. H., Murdock, K. C. & Stiglitz, J. E. (2000). Liberalization, Moral Hazard in Banking and Prudential Regulation: Are Capital Requirements Enough?. The American Economic Review. 90(1): 148.
46. Unal, H. & Navarro, M. (1999). The Technical Process of Bank Privatization in Mexico. Wharton Financial Instution Center. 97-42.
47. Vale, B. (2004). The Norwegian Banking Crisis. Norges Banks Skriftserie Occasional Papers. No. 33.
48. Wade, R. (2002). Gestalt Shift: From “Miracle” To “Cronysm” In The Asian Crisis. DESTIN Working Paper Series. 2(25).
49. Walter, A. (2002). Financial Liberalization and Prudential Regulation in East Asia: Still Perverse. RSIS Working Papers. No. 36.