Search results for " financial crash"
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Determinants of interest margins in Spanish credit institutions before and after the 2008 financial crash
2017
As interest margins of credit institutions affect economic performance of countries, finding out which are the main determinants of their evolution is a research task of great interest at current times. This is the purpose of the present paper as regards to the Spanish case over the period 2004-2012. Based on the econometric contributions by Ho and Saunders (1981) and some of its extensions, the authors develop a model that includes as explanatory variables the factors usually examined in the literature and other singular variables that might be relevant. Particularly, the rate of leverage, the quality of their assets measured according to their risk, and the profit obtained from the sellin…
Asymmetric decentralisation, economic cycle, regional and local government’s borrowing in Spain
2014
This paper investigates the evolution of sub-central government borrowing in Spain over the period 1996–2011. The arguments and figures provided show that the intense process of political and fiscal decentralisation that took place over the 1990s and 2000s did not lead to higher debt ratios in terms of GDP at these tiers of government until 2007. Although a kind of overspending bias was in effect until the late 2000s, the paper shows that the evolution of GDP and tax revenues provided regional and local governments with enough resources to vigorously pursue their devolved public policy responsibilities and still keep their debt ratios under control. However, since 2008, when the world finan…