EconPapers    
Economics at your fingertips  
 

The Crisis of Sovereign Debt in the Euro Zone: Effect on the Banking Sector

Besma Hamdi () and Sami Hammami ()
Additional contact information
Besma Hamdi: University of Sfax
Sami Hammami: University of Sfax

Journal of the Knowledge Economy, 2018, vol. 9, issue 3, 822-832

Abstract: Abstract In this article, we examine the sensitivity of the banking sector to the exchange and interest rates in the short and long term in the four countries affected by the sovereign debt crisis of the euro zone, such as Greece, Ireland, Portugal, and Spain during the 2006–2014 periods. The ordinary least squares (OLS) method is applied to examine the effect of these variables on the banking sector of each country. The empirical results show that the exchange and the short and long-term interest rates have a significant and negative impact on the banking sector in times of crisis. These three variables have a significant role in the worsening of the crisis.

Keywords: Banking sector; Exchange rate; Short-term interest rates; Long-term interest rate; Sovereign debt crisis (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s13132-016-0373-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0373-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-05-21
Handle: RePEc:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0373-9