This presentation is prepared for the subject of Economic Statistics and Business Analysis I.

1. crisis
The financial crisis in 2008
Gocha Sharvashidze

2. long period of rapid credit growth
low risk premiums
.
.
The crisis was preceded by…
abundant availability of liquidity
strong leveraging
soaring asset prices and the development of bubbles in the real estate sector.

3. Facts in US bank sector
increasingly growing
bank loans
Balance of payment
Interest rates in
euro area
Crisis introduction
US
the bankruptcy of Lehman Brothers and fears
of the insurance giant AIG (which was
eventually bailed out) taking down major US
and EU financial institutions in its wake.

4. Facts in US bank
sector
increasingly growing
bank loans
Interest rates in euro area
Crisis introduction
 This spread is known as the overnight index swap
rate (OIS)
 Bps- A basis point, or bp, is a common unit of
measure for interest rates and other percentages in
finance. 1% change = 100 basis points

5. Facts in US bank sector
increasingly growing
bank loans
Estimated loses for
US Banks
Interest rates in euro area
Crisis introduction
 The write-downs of banks are estimated to be over
300 billion US dollars in the United Kingdom (over
10% of GDP) and in the range of over EUR 500 to
800 billion (up to 10% of GDP) in the euro area

6. Facts in US bank sector
increasingly growing
bank loans
Estimated loses for
US Banks.
Interest rates in euro area
Crisis introduction
 . The IMF estimates write-downs of USD 316 billion
for banks in the United Kingdom and USD 1109 billion
(EUR 834 billion) for the euro area.

7. Facts in US bank sector
increasingly growing
bank loans
Estimated loses for
US Banks.
Interest rates in euro area
Crisis introduction
 During the financial crisis 2008 interest rates had
been changing rapidly
4.45
4.81
1.62
1.35
0.48
6.32
8.32
9.46
8.40
2.53
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
2007 2008 2009 2010 2014
Chart Title
Euro area (EA11-2000, EA12-2006, EA13-2007, EA15-2008, EA16-2010, EA17-2013, EA18-2014, EA19)
Bulgaria
Czech Republic
Denmark

8. Facts in US bank sector
increasingly growing
bank loans
Estimated loses for
US Banks.
Interest rates in euro area
Crisis introduction
 One of the result of the crisis 2008 was negative
balance of payment
Balance of payment
0
-11,962
9,974 12,060
133,092
227,812
-50000
0
50000
100000
150000
200000
250000
2008 2009 2010 2011 2012 2013
Extra-Euro area-18

9. Tourism statistic in 2008 world financial crisis
Number of international
arrivals in Europe
Outbound tourism statistic
Total nights spent by residents
1,244,223,242
1,139,650,072
1,042,535,645
1,289,114,366
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
2007 2008 2009 2010 2014
European Union (20 countries)
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
1 2 3 4 5
tourism expenditure
United Kingdom Hungary France Spain Greece
Expenditure in tourism
Tourists expenditure
Inbound tourism