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www.inglizi.tk Tutor: Hamza Sofiane
Financial crisis
The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value.
In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics.
Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.
Many economists have offered theories about how financial crises develop and how they could be prevented. There is little consensus, however, and financial crises are still a regular occurrence around the world.
Discuss the following topics:
- How do you define a financial crisis?
- What are the main factors that lead to a financial crisis?
-How could we keep away from a financial crisis?
- Which countries could be the most affected by the financial crisis and why?
Banking crisis
When a bank suffers a sudden rush of withdrawals by depositors, this is called a bank run.
Since banks lend out most of the cash they receive in deposits, it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run may leave the bank in bankruptcy, causing many depositors to lose their savings unless they are covered by deposit insurance.
A situation in which bank runs are widespread is called a systemic banking crisis or just a banking panic.
A situation without widespread bank runs, but in which banks are reluctant to lend, because they worry that they have insufficient funds available, is often called a credit crunch. In this way, the banks become an accelerator of a financial crisis.
Examples of bank runs include the run on the Bank of the United States in 1931 and the run on Northern Rock in 2007. The collapse of Bear Stearns in 2008 has also sometimes been called a bank run, even though Bear Stearns was an investment bank rather than a commercial bank.
The U.S. savings and loan crisis of the 1980s led to a credit crunch which is seen as a major factor in the U.S. recession of
1990-91.
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Learn English
banks and insurance
www.inglizi.tk Tutor: Hamza Sofiane
Financial crisis
The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value.
In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics.
Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.
Many economists have offered theories about how financial crises develop and how they could be prevented. There is little consensus, however, and financial crises are still a regular occurrence around the world.
Discuss the following topics:
- How do you define a financial crisis?
- What are the main factors that lead to a financial crisis?
-How could we keep away from a financial crisis?
- Which countries could be the most affected by the financial crisis and why?
Banking crisis
When a bank suffers a sudden rush of withdrawals by depositors, this is called a bank run.
Since banks lend out most of the cash they receive in deposits, it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run may leave the bank in bankruptcy, causing many depositors to lose their savings unless they are covered by deposit insurance.
A situation in which bank runs are widespread is called a systemic banking crisis or just a banking panic.
A situation without widespread bank runs, but in which banks are reluctant to lend, because they worry that they have insufficient funds available, is often called a credit crunch. In this way, the banks become an accelerator of a financial crisis.
Examples of bank runs include the run on the Bank of the United States in 1931 and the run on Northern Rock in 2007. The collapse of Bear Stearns in 2008 has also sometimes been called a bank run, even though Bear Stearns was an investment bank rather than a commercial bank.
The U.S. savings and loan crisis of the 1980s led to a credit crunch which is seen as a major factor in the U.S. recession of
1990-91.
- Text In English - Spain Headed For Irish-style Austerity
The following is a recommended reading text that compares two countries and economies with a similar evolution, it also shows how in Spain can happen the same things that are happening right now in Ireland. Spain could be sliding towards harsh budget...
- At The Bank
Conversation between customer and bank employeeCustomer: Excuse me, I want to open an account here. Bank employee: Go to that cabin on the left side. Customer: may I come in sir? Bank officer: Yes please. What I can do for you. Customer: I want to open...
- 2015 Public Holidays In England
In England and Wales a bank holiday tends automatically to be a public holiday and the day is generally observed as a holiday. In Scotland this may be different sometimes.. Public Holidays 2015 Date Day Holiday Countries...
- Opening A Savings Account In A Bank
Harish: Good morning, sir! Account: Good morning! What can I do for you? Harish: I want to open an account in your bank. Account: Which type of account do you want to open ? Harish: I want to open a saving bank account. Account: Please fill this form...
- Insurance
Basically, the purpose of all insurance is to protect yourself or your family against the financial impact of a tragedy. Insurance is not to help you budget moderate-sized expenses, but to protect you against the truly catastrophic. There are two...