Abstract
This chapter aims to analyze the effects of the 2008 financial crisis on the Portuguese financial system. The impact was twofold. On the one hand, the expansionary tax policy that followed increased the need for government funding and there was a trend toward recourse to the wholesale credit market. On the other hand, banks’ usual resources dried up (e.g., the interbank monetary market), pushing these institutions into much more expensive funding (for instance, bond issues), therefore squeezing financial intermediation rates. The huge increase of Portuguese government debt (well above 100%) led to a crisis of sovereign debt.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Bibliography
Amaral, Luís Mira (2010) E Depois da Crise? Cenários para a Evoluçãāo da Economia Mundial e Portuguesa, Lisbon: Bnomics.
Associação Portuguesa de Bancos (2010) ”Síntese do Sistema Bancário Português,” March.
Bank of Portugal (2010) “Financial Stability Report,” November.
Sousa, A. Rebelo de (2009) Manual de Economia do Desenvolvimento, Lisbon: ISCSP.
Sousa, A. Rebelo de (2013) Da Economia Política, 2nd edn, Loures: Diário de Bordo.
Copyright information
© 2016 Anabela Sérgio and António Rebelo de Sousa
About this chapter
Cite this chapter
Sérgio, A., de Sousa, A.R. (2016). The Impact of the Financial Crisis on Portuguese Banks: The Problem of Portuguese Sovereign Debt. In: Banking in Portugal. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230371422_2
Download citation
DOI: https://doi.org/10.1057/9780230371422_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-55414-0
Online ISBN: 978-0-230-37142-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)