Euro Crisis: Implications for Banking Sector
21 Pages Posted: 15 May 2013
Date Written: May 15, 2013
The Euro zone debt crisis has indeed jeopardized the recovery plans put in place post global crisis by regulators, policy makers and the sovereigns. Though, the crisis is epicentered in the Eurozone, the knock-on effects of the crisis are felt all across the globe. The emerging and developing economies (EDEs) are also expected to post lower growth on account of worsening external environment and a weakening internal demand.This paper while presenting the contemporary literature on the topic, analyses the causes for sovereign debt crisis and presents the implications of sovereign debt crises and draws lessons for banking sectors more particularly in the context of emerging markets like that of India.
Keywords: Sovereign debt crisis, Credit Risk, Endogenous Default, Banking Crisis
JEL Classification: E32, E42, F33, F36, G01
Suggested Citation: Suggested Citation