Title: Underlying nature of the 2008-2009 banking crises

Authors: Jonathan Njoku; Eno L. Inanga

Addresses: Kuwait-Maastricht Business School, Kazima Street, Block 3, Dasma, Kuwait. ' Maastricht School of Management, Endepolsdomein 150, 6229, EP Maastricht, The Netherlands

Abstract: The study builds upon the anatomy of banking firm financial condition developed from the Nigerian experience during 1990-2004 (Njoku and Inanga, 2008b) to explain the underlying nature of the 2008-2009 global banking crises. The anatomy framework conceptualised bank financial condition in seven structural dimensions, including market presence, macro-economic condition, deposit mobilisation, prudence, earnings quality, market power and capital confidence. These dimensions were applied in interpreting critical issues commonly reported on the crises. The conceptual model delivers insight in understanding the 2008-2009 global banking crises, thereby contributing to regulatory and policy response. Solutions to the crises, including regulatory measures, should carefully consider and reflect the anatomic dimensions to be comprehensive.

Keywords: Nigerian banking; anatomy; market presence; macroeconomics; deposit mobilisation; prudence; earnings quality; market power; capital confidence; global banking crisis; credit default swaps; CDS; bank distress; sub prime mortgages; sub prime crisis; Nigeria.

DOI: 10.1504/AJAAF.2012.048070

African Journal of Accounting, Auditing and Finance, 2012 Vol.1 No.2, pp.190 - 208

Published online: 31 Jul 2014 *

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