Thursday, March 19, 2009

Banking Crisis - The Major Financial Crisis

The economic crisis in the financial institutions or assets suddenly loses a lot in this price a wide variety of conditions have been applied to. 19th and early 20th century, the number of terror with the banking crisis, and was associated with a combination of terror in many Recessions. Other conditions often bag and other financial bubble financial crisis, currency crisis and sovereign default distribution is called.

How many economists for the development and how to provide the financial crisis can be avoided on principle? This little consensus,however,and economic crisis in this world is always an event.


When a bank,it is called a bank run by depositors of Withdrawals suffers a sudden wave. Since the banks credit to lend to the most if a course in bankruptcy in May, many depositors lose their savings due to the bank before you leave if all the tanks was thinking all of a sudden, it is difficult for them to pay if not covered by deposit insurance. The banks of a broad systemic banking crisis or a banking panic are the situation said. Sufficient resources are available because they have a situation where the bank provides a comprehensive, but to lend to banks, worried about, is called a credit often are reluctant.

In 1931 and 2007 in the Northern Rock bank in the USA are examples from the bank management. Collapse of Bear Stearns in 2008, sometimes even a bank run, but Bear Stearns said in comparison to a commercial bank is an investment bank. America's savings and loans of the 1980s led to a strengthening of the credit crisis of 1990-1991 for the U.S. slowdown is considered an important factor.