1. Discuss what is meant by the bank crisis. Explain some of the known banking crises in the world.

2. Explain the concept of a stress test and its purpose in resolving a banking crisis.

3. How do you understand the Shadow Banking System and how to effect this system in 2007-2008 crisis?

4. What are the causes of financial crisis and who are the key player in crisis?

5. What are the main policies to solve banking crises? Can future crises be avoided?

6. How do you understand by the term Too big to fail and Moral Hazard? Explain fully with an illustration of a vicious cycle.

7. Why banks are required to maintain a reserve fund and how important to maintain it?

8. What were the main causes of the Asian financial crisis in 1997? What role did exchange rates play in the crisis?

Answer rating: 100% (QA)

Bank Crisis A bank crisis refers to a situation where the banking sector faces significant instability often characterized by a high number of bank failures liquidity problems or solvency issues These ... View the full answer