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

Authors : Serkan ŞENGÜL

Pages : 434-449

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Publication Date : 2023-06-30

Article Type : Review Paper

Abstract :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.
Keywords : Finansal Regülasyon, Finansal Kriz, Ahlaki Çöküntü