How the global financial crisis of 2007-2009 affected different banking systems in the world?

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[...] How the global financial crisis of 2007-2009 affected different banking systems in the world? Subject: Discuss how the global financial crisis of 2007-2009 affected different banking systems in the world. After the Global Financial Crisis many commentators suggested that global financial integration would reverse and the banking system would need to change. Although the collapse in capital flows and signs of financial fragmentation is well documented, the developments in the banking system, and the implementation of certain regulations are not as well documented, creating some confusion on the actual facts. [...]

[...] Thus, the ensuing crisis has generated a contagion of bank deficits with colossal losses in asset impairments and net losses. In order to rehabilitate the sector, the government and banks have each put in place new measures at their own level to strengthen institutions and strengthen their financial and economic soundness. As a result, many transformations have been initiated, particularly through the management of deposits, the consolidation of equity capital and the renewal of the economic model towards the rationalization of risky activities, a model that would suit banks to be able to reconcile with their business and profitability imperatives. [...]

[...] At the beginning of 2007, the first warnings emerged, culminating in the collapse of Lehman Brothers in September 2008. From then on, the banking crisis was followed by a financial crisis with strong economic and social consequences. Through this summary, we will understand the role of banks in the 2007-2009 crisis, the consequences and the measures taken that forced banks to review their operations and their model. Thus, our objective is to be able to analyze the developments that took place during and after the financial crisis in the global banking system and to study the structural transformations of the sector by asking the following question: how did the 2007 crisis transform the organization of the banking sector? [...]

[...] Indeed, from that date on, banks understood their interest in carrying out their M&A operations in order to refocus their activities with more than 680 billion dollars of transactions recorded in 2008. At the same time, banks have also decided to carry out numerous transactions to sell non-strategic assets, always with the same logic of refocusing their activities on their core business and controlling the related risks. Banks also want to refocus at the national level. Whereas in the years leading up to the 2007-2009 crisis there was a trend towards internationalization, the crisis has led banks to change their strategies by changing their industrial logic, both in terms of business lines and geographical markets, in order to return to the markets, they know and master. [...]

[...] Indeed, financial losses began in 2006 for American banks, with a drop of 43 billion dollars, while in Europe, at the same period, banks' net results were still rising. However, it was really from 2007, the year of the crisis, that banks began to suffer the full force of very large losses in terms of net income, causing a significant weakening of their balance sheets and structure (see Chart 2). Chart Banks' net income Thus, during the year 2007, banks found themselves completely weakened by toxic asset choices that led to a devaluation of their financial capitalization and their financial structures, thus restoring their solvency capacity, thus leading to the start of the financial crisis on a global scale. [...]