1-Briefly discuss how credit bubble can lead to crisis (hint:
Japanese banking crisis)
2- Compare and contrast the potential causes of banking crisis
for emerging and advanced financial systems. What are the potential
preventative measures in each case?
2. Recessions affect banking sector performance and sometime may
lead to banking insolvency. Please explain how recessions affect
banking performance and how it may lead to banking insolvency?
The Global Financial Crisis 1. What is the aftermath of a
banking crisis on the housing market? Equity prices? 2. What is the
aftermath of a banking crisis on unemployment? GDP? Debt?
Evaluate how the reputation of banking changed since the
financial crisis in 2008. How would you address this reputational
change if you were a large bank? A small bank?
How, in general, can a financial crisis lead to a recession?
What, in particular, precipitated the severe recession of
2007-2009? Include in your discussion what role the government,
businesses, and consumers played in the economic downturn.