The economic, legal and social aspects of the role of financial institutions before, during and after the financial crisis – University of Primorska – Faculty of Management Date posted: December 29, 2012
The purpose of this article is to reflect upon the importance and the role of financial institutions before, during and after the financial crisis and to outline proposals for alternative approaches to the financial crisis. Without an understanding of the historic development, nature and scope, and important limitations of modern financial institutions, the regulatory reform of modern financial institutions cannot be successful.
The success of financial reforms and their restructuring can only be measured when modern financial institutions participate, support and develop the real economy and support a more balanced, inclusive and diverse social development process. This is what the really ‘exciting’ banking and finance organizations should stand for. At the moment, the Western societies are still moving away from the goal of socially useful role of financial institutions. The regulatory reforms, bail-outs and dominant ideas about the European banking union, for example, are impeding, rather than facilitating, hopes for real economic and social recovery on both sides of the Atlantic. Only after an in-depth understanding of the substantive intricacies of modern financial institutions, can we approach a meaningful and thoughtful regulatory reform.
Independent minded scholars from all over the world would make a historical mistake if they continue to ignore the wide variety of ways that the financial, economic and social reconstruction of modern societies in different parts of the world can be accomplished.