O impacto da crise sobre o sistema bancário de portugal

THE IMPACT OF THE FINANCIAL CRISIS
ON THE BANKING SYSTEM OF PORTUGAL
The world has been rocked by the most major financial and economic crisis in the recent history. It began in 2008 with the collapse of a few banks and financial institutions in the largest economy of the world.
The volume of the stock market fell sharply, the whole financial system collapsed. It increased the instability of the financial sector. The crisis has made banking systems of many European countries more fragile in the last few years.
Banks lie at the heart of the financial system, they fulfill central role in the economy. And at the same time, banks are fragile institutions and are the most vulnerable sector of the modern economy. They are highly interdependent: they operate on the similar markets, carry out some mutual operations on interbank money market. Thus, the problems in one bank can lead to the slowdown of the operations of another. We should consider the banking system as a unit of banks connected to and dependent on each other. It is essential to have a stable financial system. But if the banking system had some problems, they can be aggravated during the crisis. The banking crisis in Portugal has appeared due to the unstable macroeconomic situation. But there are also some problems inside the banks that have led to the crisis. In this paper the external and internal reasons of the crisis of the banking system of Portugal will be considered. I will overview the current situation of the banking system of Portugal before and after the crisis. It´s important to determine the impact of the crisis on the amount of loans, deposits and foreign investment. I will also review the measures of
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the the government of Portugal, which have been taken in order to improve the environment in the financial system and to overcome the crisis. As far as
Portugal is part of the European Union, I will compare its banking system with the banking systems of other