The 2008 Economic Crisis: Implications and Responses in the Banking Sector

Abstract

This article documents and discusses the impacts of and responses to the 2008 global financial and economic crisis (GFEC). General impacts and responses are outlined with some example from some specific countries. The discussion on the general impacts and responses are followed by discussions on the impacts of and response to the crisis in the banking subsector of the broader financial sector. The major findings of the study indicate that there have been substantial impacts of the crisis in the banking sector in the more economically and financially developed and integrated part of the world such as Europe and North America than in the less developed and intergated part of it such as Africa. Within Africa, the more economically developed and financially integrated countries such as South Africa and Nigeria were more affected by the crisis in general and in their financial sector in particular. There have also been various responses to the 2008 economic crisis in general and within the banking sub-sector in particular both globally and within Africa. The model that has been developed by the author indicates among other things that some of responses to economic crisis by the banking sector can lead to yet another chain of impacts, both positive and negative. The paper is mainly informed by a desk research in form of intensive literature review and discussion of the same.

Key words: 2008 economic and financial crisis, impacts, responses