Author: S. B. Khandare

Publisher: Createspace Independent Pub

Published: 2014-07-08

Total Pages: 138

ISBN-13: 9781500431020

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In recent years, US sub-prime crisis appeared in mid-2007 which was transformed into a global financial crisis and then into global economic crisis, attracted the attention of all. Although advanced countries remained the epic centre of the crisis but the EMEs have also substantially been affected including India. In case of developed countries, banking and financial crises have been costly to the economy, but these crises seem to be imposed on the developing countries. The spread of financial crisis with a rapid speed shocked the rest of the world with US and Europe. It is now widely accepted that the nearest precedent to this crisis is the 'Great Depression'. In the nineteenth and twentieth centuries many financial crises were associated with banking panics and many recessions coincided with these panics. More than the financial cost, the adverse impact of this crisis on real economy have been severe. In 2009, the world GDP is estimated by the IMF to have contracted by 0.8 percent and the world trade volume is estimated to have declined by 12 percent. The expanse of the crisis has tested all the limits of conventional and unconventional policy options around the world. Interbank markets in advanced economies were the first to be affected by severe liquidity crisis; however India could not be untouched itself from it. Economic growth of India was decelerated in 2008-09 to 6.7 percent. This represented a decline of 2.1 percent from the average growth rate of 8.8 percent in the previous five years. During the initial phase of crisis the impact on Indian financial markets was muted, however, since mid-September of 2008 it became amplified. In 2008-09 the industrial production grow only 2.6 percent comparing to the 7.4 in the previous year, imports fell by 12.2 percent and exports fell by 20 percent at the end of March, 2009. Trade deficit widened from $88.5 billion to $119.1 billion in 2008-09. Current account deficit increased from $17.0 billion to $29.8 billion. Net capital inflows in 2008-09 were 9.1 percent of GDP as of 9.2 percent of GDP in previous year. Present work is a description, narration and analysis of conceptual framework of the related terms. This is a humble attempt to describe and interrelate the two main terms viz. 'Global Financial Crisis' and 'Indian Banking Scenario', after considering, referring, studying and relying on various kinds of Reports, (Annual, Bi-annual, Quarterly and Occasional), Research & Working Papers of various national, international, Government and non-government bodies/authorities, various books, Opinions & published Speeches, Articles etc. It would be useful for student, researchers and readers in International Studies, Economics and Banking & Finance. Hope will be useful as a Reference Book, for the readers with expectation that improvement and suggestions will be communicated.

Download or read book The Global Financial Crisis written by S. B. Khandare and published by Createspace Independent Pub. This book was released on 2014-07-08 with total page 138 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, US sub-prime crisis appeared in mid-2007 which was transformed into a global financial crisis and then into global economic crisis, attracted the attention of all. Although advanced countries remained the epic centre of the crisis but the EMEs have also substantially been affected including India. In case of developed countries, banking and financial crises have been costly to the economy, but these crises seem to be imposed on the developing countries. The spread of financial crisis with a rapid speed shocked the rest of the world with US and Europe. It is now widely accepted that the nearest precedent to this crisis is the 'Great Depression'. In the nineteenth and twentieth centuries many financial crises were associated with banking panics and many recessions coincided with these panics. More than the financial cost, the adverse impact of this crisis on real economy have been severe. In 2009, the world GDP is estimated by the IMF to have contracted by 0.8 percent and the world trade volume is estimated to have declined by 12 percent. The expanse of the crisis has tested all the limits of conventional and unconventional policy options around the world. Interbank markets in advanced economies were the first to be affected by severe liquidity crisis; however India could not be untouched itself from it. Economic growth of India was decelerated in 2008-09 to 6.7 percent. This represented a decline of 2.1 percent from the average growth rate of 8.8 percent in the previous five years. During the initial phase of crisis the impact on Indian financial markets was muted, however, since mid-September of 2008 it became amplified. In 2008-09 the industrial production grow only 2.6 percent comparing to the 7.4 in the previous year, imports fell by 12.2 percent and exports fell by 20 percent at the end of March, 2009. Trade deficit widened from $88.5 billion to $119.1 billion in 2008-09. Current account deficit increased from $17.0 billion to $29.8 billion. Net capital inflows in 2008-09 were 9.1 percent of GDP as of 9.2 percent of GDP in previous year. Present work is a description, narration and analysis of conceptual framework of the related terms. This is a humble attempt to describe and interrelate the two main terms viz. 'Global Financial Crisis' and 'Indian Banking Scenario', after considering, referring, studying and relying on various kinds of Reports, (Annual, Bi-annual, Quarterly and Occasional), Research & Working Papers of various national, international, Government and non-government bodies/authorities, various books, Opinions & published Speeches, Articles etc. It would be useful for student, researchers and readers in International Studies, Economics and Banking & Finance. Hope will be useful as a Reference Book, for the readers with expectation that improvement and suggestions will be communicated.