Banking N Finance

Paper Presentation Competition on Banking and Finance

Financial nuclear meltdown
and
Banking System











Submitted by:

Rahul Dolakasharia Saikia

PGDBM 2nd Year

Assam Institute of Management

E-mail: Rahul.dsaikia@gmail.com

expeditious: +91 9707012128
Introduction:

With the effects monetary meltdown harming both possible sector of world economy, there are increase talks on how to avoid such situation in the coming future. In this context one of the sectors that need modified attention is the banking system. This is because the health of this particular sector has the spill everyplace effect on every other sector of the economy.

What is pecuniary meltdown?
The sub prime owe crisis is an ongoing financial crisis triggered by a dramatic rise in mortgage delinquencies and foreclosures in the United States, with major adverse consequences for banks and financial markets most the globe. The crisis, which has its roots in the closing years of the 20th century, became seeming in 2007 and has exposed pervasive weaknesses in financial assiduity regulation and the global financial system.

What caused it?
Many U.S.



mortgages issued in upstart years were made to sub prime borrowers, defined as those with lesser ability to repay the loan based on various criteria. When U.S. house prices began to decline in 2006-07, mortgage delinquencies soared, and securities indorse with sub prime mortgages, widely held by financial firms, incapacitated most of their value. The result has been a large decline in the capital of many banks and USA government sponsored enterprises, tightening realisation around the world.
[Source: www.wikipedia.com]

Why Indian banking system is not touch?
One of the reasons for which the effect of financial meltdown was not wicked on Indian Banking system was the stringent regulatory milieu in India. Unlike US where the Federal Reserve had adoptive a liberal stance the Indian regulator rbi was strict in its approach over...If you want to get a full essay, order it on our website: Orderessay



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