... affected by the crisis, at least through their financial exposures. Financial institutions in other countries, notably in Europe, were hardest hit. In fact, before the crisis erupted, the main concern ... balance sheets of financial institutions in the run-up to, and during, the financial crisis. We find that there are several respects in which these patterns are not consistent with the view that ... construction, there is no difference between saving and financing as defined in this paper. But can these frameworks realistically represent the determination of the interest rates prevailing in financial...