OECD Journal: Financial Market Trends

Frequency
Annual
ISSN: 
1995-2872 (online)
ISSN: 
1995-2864 (print)
http://dx.doi.org/10.1787/19952872
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The articles in Financial Market Trends focus on trends, structural issues and developments in financial markets and the financial sector.

Article
 

Resolutions of weak institutions

Lessons learned from previous crises You do not have access to this content

English
 
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    http://oecd.metastore.ingenta.com/content/2708021ec004.pdf
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Author(s):
Stephen Lumpkin
07 Jan 2009
Pages:
47
Bibliographic information
No.:
13,
Volume:
2008,
Issue:
2
Pages:
1–42
http://dx.doi.org/10.1787/fmt-v2008-art13-en

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The present financial crisis may be added to a growing list of episodes worldwide in which financial sector problems have become systemic in nature. Many OECD countries have been affected, either directly or through the transmission of problems cross-border. Most financial crises share a number of common elements.
For instance, financial innovation has often played a role in distress episodes, in many cases, having much to do with their idiosyncratic aspects. For example, structured credit products and the latest incarnation of the originate-and-distribute model of intermediation have been at the epicentre of the current crisis. It differs from other crisis episodes in having a sub-component of the residential mortgage sector as its trigger, while previous crises have more often been prompted by problems in the commercial mortgage market and with corporate clients.
 
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