PRESENTED BY, S . karthick Shan, J.

Stephan raj

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

 The credit crunch

Sub-prime crisis and housing bubble

Increase the amount of money, extra liquidity, mortgage

brokers were paid commission to approve loans

 It began in the US housing market The Financial sector became over-exposed to highly unregulated transactions

in the housing market

The banks lent aggressively and recklessly to these financially less secure

households and individuals

Borrowers defaulted rapidly and at the same time Houses prices fell and people could not sell their houses to cover their debts

Began in late 2009, is the shorthand term for the regions struggle to pay the debts it has built up in recent decades. Five of the regions countries Greece, Portugal, Ireland, Italy, and Spain have, to varying degrees, failed to generate enough economic growth to make their ability to pay back bondholders the guarantee its intended to be. Although these five were seen as being the countries in immediate danger of a possible default, the crisis has far-reaching consequences that extend beyond their borders to the world as a whole. The head of the Bank of England referred to it as the most serious financial crisis at least since the 1930s, if not ever, in October 2011.

 Housing Price Bubble and Collapse Financial Market Freeze and Collapse Policy Response Support for Financial Sector Monetary Policy Fiscal Policy Greeces Problems Rising Debt Level = an accumulation Trade Imbalance

 Trade Channel: It impact the affected countries

Export, Import and trading partners. Financial Channel: Apart from movement in financial markets, three kinds of financial flows could impact Indian financial markets: FDI, FII, ECB, NRI deposits. Confidence channel: This channel Shows confidence declines in business and households Seeking the global uncertainty.

Avoid high volatility in monetary policy Appropriate response of monetary policy to asset prices Manage capital flow volatility Look for signs of over leveraging Active dynamic financial regulation Capital buffers, dynamic provisioning Look for regulatory arbitrage incentives/ possibilities

 Global financial crisis hit in 2008 Effects to children and youth(causing because of financial crisis)

a). Important to consider the impact of financial crisis on children and youth b).Financial crisis affecting children and youth at different stages c). kinds of policies help children and youth maintain their health and wellbeing in times of crisis
www.worldbank.com/financial crisis