ABCP. See Asset-Backed Commercial Paper (ABCP)

Acharya, V.

, 84, 85

Adverse selection

, 88–89

AI. See Artificial intelligence (AI)

API. See Application Program Interface (API)

Application Program Interface (API)

, 77

Article IV consultations

, 38

Artificial intelligence (AI)

, 77

Asian financial crisis (1997–1998)

, 86

Asset-Backed Commercial Paper (ABCP)

, 85

Asset-backed securities, working mechanism of

, 117

Asset price bubbles

, 89–92

Azerbaijan

, 59

Balance of payments crisis

, 101

Bangladesh

, 60

Banking crises

causes of

, 94–96

costs of

, 96

Banking sector

, 56–57

Bank managers

, 4

Bank of Albania

, 21–24

Bank of Canada

, 20–21

Bank of England

, 19

The Bank of Greece

, 18

‘Bankruptcy remote’

, 119

Banque de France

, 18

Barnett, W. A.

, 105

Basel Committee on Banking Supervision (BCBS)

, 25

BCBS. See Basel Committee on Banking Supervision (BCBS)

Behavioural finance

, 101–102

Beltratti, A.

, 6

Big Data analytics

, 74

Binary metrics of financial stability

, 53

Biometrics

, 78

Bitcoins

, 75–80

1987 Black Monday

, 86

Boer, M.

, 75

Bond valuation methods

, 2

Boom/bust analysis of markets

, 91

Bordo, M.

, 97

Born, B.

, 34

Brennan, S.

, 9

Bretton Woods global system

, 97

Broz, J. L.

, 31

Business loans

, 79

Capital, defined

, 8

Capital markets

, 14

Capital structure of firms

, 2

Caprio, G.

, 31

CBOs. See Collateralised Bond Obligation (CBOs)

CDOs. See Collateralised Debt Obligations (CDOs)

CDS. See Credit default swaps (CDS)

Central Bank of Armenia

, 19

Central Bank of Bahrain

, 17

Central Bank of Germany

, 21

Central Bank of Iceland

, 19

Central Bank of Namibia

, 20

The Central Bank of Nepal

, 20

The Central Bank of Swaziland

, 17

Central Bank of the Kingdom of Denmark

, 15

Central Bank of the Republic of Austria

, 18

Central Bank of the Republic of Hungary

, 17–18

Central banks’ required reserve ratios

, 121–123

Christensson, J.

, 34

CLOs. See Collateralised Loan Obligation (CLOs)

Cloud computing

, 74

CMOs. See Collateralised Mortgage Obligations (CMOs)

Collateralised Bond Obligation (CBOs)

, 117

Collateralised Debt Obligations (CDOs)

, 117

Collateralised Loan Obligation (CLOs)

, 117

Collateralised Mortgage Obligations (CMOs)

, 117

Commercial banks

, 85

Commodities investment

, 6

Commodity markets

, 14

Continuous metrics of financial stability

, 53

Core capital

, 8

Corporate sector

, 57–58, 66

Correa, R.

, 34

Credit crunch

, 127

Credit default swaps (CDS)

, 35

Credit frictions

, 88–89

Credit provision

, 6

Crowdfunding platforms

, 79

Cryptocurrencies

, 76, 80

Cryptography

, 78

Cukierman, A.

, 36

Currency crises

, 96–100

Cyberattacks

, 75

Cyber-security

, 75

Danmarks Nationalbank

, 15

Debt crisis

, 102

Degree of short terminism

, 50

Denmark

, 60–61

Deposit insurance

, 94

Deposit margin

, 127

Derivatives markets

, 14, 27

The Deutsche Bundesbank

, 21

Diamond, D. W.

, 52

Digital-based crises

, 106

Digital payments

, 79

Discredited theory

, 4–5

Distributed ledger technology (DLT)

, 77–78

DLT. See Distributed ledger technology (DLT)

Domestic debt crises

, 102

Dot-com bubble

, 87

DSGE models. See Dynamic Stochastic General Equilibrium (DSGE) models

Dynamic Stochastic General Equilibrium (DSGE) models

, 11

‘Dysfunctional finance’

, 9

ECB. See European Central Bank (ECB)

ECF. See Extended Credit Facility (ECF)

ECH. See Electronic clearing house (ECH)

Efficient market hypothesis

, 101

Ehrmann, M.

, 34

Eichengreen, B.

, 97

Electronic clearing house (ECH)

, 64

Elson, A.

, 101

E-money

, 79

ETFs. See Exchange Traded Funds (ETFs)

European Central Bank (ECB)

, 15–16

European Systemic Risk Board Recommendation

, 100

Eurosystem

, 62

Exchange Traded Funds (ETFs)

, 127

Extended Credit Facility (ECF)

, 60

External debt crisis

, 102

FDI. See Foreign Direct Investment (FDI)

The Federal Reserve Bank in US

, 20

FIFIM. See Financial Intermediation Services Indirectly Measured (FIFIM)

Fijian financial system

, 21

Finance

defined

, 1–2

discredited theory in

, 4–5

features in

, 3–4

great recession

, 8

illusionary contribution of

, 9–10

insolvency risk versus illiquidity risk

, 8

misinterpreted role of

, 10–11

provision of goods and services

, 3

self-interest of bank managers

, 4

shortcomings embedded in

, 5–7

solutions to identified shortcomings

, 7–8

Financial crises

costs of

, 106–107

effects of

, 87

features of

, 87–88

management

, 105

theories of

asset price bubbles

, 89–92

balance of payments crisis

, 101

banking crises

, 92–94

behavioural finance

, 101–102

credit frictions and market freezes

, 88–89

currency crises

, 96–100

debt crisis

, 102

failures of existing theories

, 104–105

systemic liquidity crises

, 103

with trend shifting to digital currencies

, 105–106

types of

, 85–87

Financial Crisis Inquiry Commission

, 73

Financial instability

, 16, 30

Financial Intermediation Services Indirectly Measured (FIFIM)

, 50

Financial lease

, 128

Financial Policy Committee

, 19

Financial Sector Assessment Programme (FSAP)

, 36–42

Financial Soundness Indicators (FSIs)

, 38

Financial stability

analyst

, 53

defined by different institutions worldwide

Bank of Albania

, 21–24

Bank of Canada

, 20–21

Bank of England

, 19

The Bank of Greece

, 18

Banque de France

, 18

Central Bank of Armenia

, 19

Central Bank of Bahrain

, 17

Central Bank of Iceland

, 19

Central Bank of Namibia

, 20

The Central Bank of Swaziland

, 17

Central Bank of the Kingdom of Denmark

, 15

The Deutsche Bundesbank – Central Bank of Germany

, 21

European Central Bank

, 15–16

The Federal Reserve Bank in US

, 20

The Magyar Nemzeti Bank – Central Bank of the Republic of Hungary

, 17–18

National Bank of Georgia

, 16–17

Nepal Rastra Bank – The Central Bank of Nepal

, 20

The Oesterreichische Nationalbank (OeNB) – Central Bank of the Republic of Austria

, 18

Reserve Bank of Australia

, 16

Reserve Bank of Fiji

, 21

dynamic issue

, 28

predictability/resilience

, 28

risks

, 28, 55–66

Financial Stability Board (FSB)

, 42, 71–80

Financial Stability Reports (FSRs)

, 33–36

Financial system

, 27–28

metrics of

, 48–52

FinTech

, 71–81

Foreign debt crisis

, 102

Foreign Direct Investment (FDI)

, 102

Foreign exchange markets

, 14

Fratzscher, M.

, 34

Frieden, J. A.

, 31

FSAP. See Financial Sector Assessment Programme (FSAP)

FSB. See Financial Stability Board (FSB)

FSIs. See Financial Soundness Indicators (FSIs)

FSRs. see Financial Stability Reports (FSRs)

‘The Future of Finance’

, 6

Garud, K.

, 34

GFSR. See Global Financial Stability Report (GFSR)

Glass-Steagall Banking Act of

, 1933, 111

Global Financial Stability Report (GFSR)

, 43–44

Global shocks

, 101

Goodhart, C.

, 8, 106

Gorton, G.

, 84

Great depression

, 8

Great recession

, 8–9

Gujarati, D.

, 21

Haggard, S.

, 31

Haldane, A.

, 9, 27, 84

Healthy financial system

, 19

Household sector

, 58

Hughes, J. P.

, 4

IMF. See International Monetary Fund (IMF)

Inadequate economic policy

, 18

Inefficient resource allocation

, 18

Information asymmetry

, 2

Institute of International Finance

, 71

International Monetary Fund (IMF)

, 9

global financial stability report

, 43–44

International remittances

, 79

Internet of Things (IoT)

, 77

Intertemporal dimensions

, 2

IoT. See Internet of Things (IoT)

Italian Banking Association

, 63

Italy

, 61–63

Kindleberger–Minsky model

, 90

Laeven, L.

, 85

Lending margin

, 127

Liabilities side currency risk

, 99

Liquidity risks

, 8

Local shocks

, 111

Londono, J. M.

, 34

Long-term capital management (LTCM)

, 86

LTCM. See Long-term capital management (LTCM)

Machine learning

, 77

Macroeconomic liquidity risk

, 111

Macroeconomic models

, 104–105

Madouros, V.

, 9

The Magyar Nemzeti Bank

, 17–18

Market freezes

, 88–89

Mauritius

, 10, 63–64

Mester, L. J.

, 4

Metrics of financial system

, 48–52

Mislang, N.

, 34

Monetary stability

, 44–45

Money markets

, 14

Moore’s Law

, 27

Moral hazard problem

, 94

Mortgage-backed securities

, 118

Muñoz, S.

, 35

National Bank of Georgia (NBG)

, 16–17

National Bureau of Economic Research

, 101

National Financial Inclusion Framework (NFIF)

, 65

NBG. See National Bank of Georgia (NBG)

Nepal Rastra Bank

, 20

Net interest income

, 127

NFIF. See National Financial Inclusion Framework (NFIF)

Ng, T.

, 33

Non-bank financial institutions

, 58–59

Non-credible exchange rate mechanism

, 18

Non-regulatory approach

, 9

OeNB. See Oesterreichische Nationalbank (OeNB)

Oesterreichische Nationalbank (OeNB)

, 18

Off-balance sheets

, 50

1973 Oil crisis

, 86

On-balance hike

, 50

Operating lease

, 128

Peer-to-peer (P2P) lending platforms

, 79

Personal loans

, 79

Political economy

, 31

Ponzi scheme

, 90

Primary surplus/deficit

, 127

Private equity

, 6

Prompt action

, 81

Prudential Regulation Authority

, 19

Public sector

, 57

Rapid liberalisation of financial sector

, 18

Real estate sector

, 59

Regulatory Affairs of Institute of International Finance

, 74

Regulatory capital

, 8

Reinhart, C.

, 28, 30

Repo transaction

, 127

Reserve Bank of Australia

, 16

Reserve Bank of Fiji

, 21

Resilient financial system

, 16

Robo-advisors

, 79

Rogoff, K.

, 28

Rule-based approach

, 104

Saunders, A.

, 4

Schoenmaker, D.

, 29, 34

Second-generation model of currency crises

, 99

Securitisation

, 3, 27

Sharifuddin, S. T.

, 35

Sharpe index

, 128

Single driving force

, 2

Slovenian economy

, 55–56

Slovenian household sector

, 58

Smart contracts

, 78

Smooth-functioning financial system

, 15

Solow, R.

, 104

Special purpose vehicle

, 119

Spong, K.

, 34

Stable financial system

, 15, 16

‘Stockholder controlled’ banks

, 4

Stress testing

, 80

Strock, E.

, 4

Stulz, R. M.

, 6

Supplementary capital

, 8

Svensson, L. E. O.

, 35

Sveriges Riksbank

, 35

Sweden

, 65–66

Swedish banking system

, 65

Syndicated loans

, 127

Systemic liquidity crises

, 103

Tanzania

, 64–65

Tanzania Interbank Settlement System (TISS)

, 64

Third generation of crisis models

, 99–100

Tier 1 capital

, 8

Tier 2 capital

, 8

Tintchev, K.

, 35

TISS. See Tanzania Interbank Settlement System (TISS)

‘Transfer-enhance-sell’ approach

, 119

Transmission mechanism of monetary policy

, 45

Travlos, N.

, 4

Trichet, J-C.

, 104–105

Tsomocos, D.

, 106

Turner, A.

, 6, 7, 8, 49

UK banking system change (1964–2007)

, 66–69

Underpriced risks

, 10

US subprime crisis of

, 2007, 108–113

consequences and implications of

, 113–116

Valencia, F.

, 85

Vayid, I.

, 33, 34

Vazquez, J.

, 75, 76

Weak supervision

, 18

Wilkinson, J.

, 34

Woolley, P.

, 9, 10, 11