Slide 2:
GLOBAL FINANCIAL CRISIS
The global financial crisis of 2008 is the worst of its kind since the Great Depression.
Began, with failure of large financial institutions in the United States.
Rapidly, evolved into a global financial crisis resulting in a number of European & Asian bank failures.
Slide 3:
Meaning of Global Financial Crisis
• The term financial crisis is applied
broadly to a variety of situations.
• Usually, some financial institutions or
assets suddenly lose a large part of
their value.
– Banking Panics (and recessions)
– Stock market crashes
– Currency crisis
Slide 4:
Banking Panics (and recessions)
– September 7, 2008
• Commercial banks suffer a sudden rush of withdrawals by depositors, this is called a bank run.
– September 14, 2008
• Lehman Brothers files for bankruptcy.
• Sale of Merrill Lynch to Bank of America.
– September 16, 2008
• Financial institutions lost a large part of their value in coming days and weeks.
Slide 5:
CITI GROUP (MARKET VALUE) $BN RBS(MARKET VALUE) $BN
Slide 6:
CAUSES:
FRAUD
ASSET-LIABILITY MISMATCH
CURRENCY CRISIS
RESULTS:
FALL IN MARKET VALUES
INCREASE IN FUEL PRICES
INFLATION
DECLINE IN JOBS & THUS INCREASING UNEMPLOYMENT
GOOD SIGNS: WORLD ECONOMY TRYING TO REGAIN SLOWLY & STEADILY
JOBS ARE SLOWLY COMING BACK
INDIA IS LEAST AFFECTED:HAVING 9% INDUSTRIAL GROWTH
Slide 7:
YOU THANK