Enhance Your Learning with Financial Crises and Regulation Flash Cards for quick learning
A disruption in the financial system characterized by a sharp decline in asset prices, insolvency of financial institutions, and widespread panic and fear in the market.
The imposition of rules and regulations by the government on financial institutions and markets to maintain stability, protect consumers, and prevent excessive risk-taking.
Organizations that provide financial services, such as banks, insurance companies, investment firms, and credit unions.
Financial crises that occur on a global scale, affecting multiple countries and their economies.
The process of handling and resolving a financial crisis, including implementing emergency measures, providing liquidity support, and restoring confidence in the financial system.
The condition in which the financial system functions smoothly, with minimal disruptions and risks to the overall economy.
Government agencies responsible for overseeing and regulating financial institutions and markets to ensure compliance with laws and regulations.
Changes and improvements made to the financial system and regulatory framework to address weaknesses and prevent future financial crises.
Measures and policies implemented to identify and mitigate risks, strengthen the financial system, and prevent the occurrence of financial crises.
Actions taken by governments, central banks, and regulatory authorities to address and mitigate the impact of a financial crisis.
The process of resolving a financial crisis, including restructuring troubled institutions, recapitalizing banks, and restoring stability to the financial system.
Government policies and measures aimed at managing and mitigating the impact of a financial crisis, such as fiscal stimulus, monetary easing, and regulatory reforms.
The effects and consequences of a financial crisis on the economy, including job losses, recession, market volatility, and reduced investor confidence.
The process of recovering from a financial crisis, including restoring economic growth, rebuilding trust in the financial system, and implementing reforms to prevent future crises.
Key takeaways and insights gained from past financial crises, which inform policy decisions and help prevent similar crises in the future.
In-depth analyses of specific financial crises, examining their causes, impact, and the effectiveness of crisis management and regulatory responses.
The process of evaluating and identifying potential risks and vulnerabilities in the financial system that could lead to a crisis.
The spread of financial distress and instability from one institution or market to others, often resulting in a domino effect and amplifying the impact of a crisis.
Emergency financial assistance provided by governments or central banks to troubled financial institutions to prevent their collapse and stabilize the system.
The system of rules, regulations, and institutions that govern the financial sector and ensure its stability, integrity, and accountability.
The availability and accessibility of accurate and timely information about the financial system, institutions, and transactions, promoting trust and informed decision-making.
The oversight and monitoring of financial institutions and markets by regulatory authorities to ensure compliance with laws, regulations, and prudential standards.
Measures and actions taken to reduce the severity and impact of a financial crisis, such as liquidity injections, capital injections, and asset purchases.
The ability of the financial system to withstand and recover from shocks and disruptions, maintaining stability and minimizing the impact on the economy.
Tools and indicators used to monitor and detect potential risks and vulnerabilities in the financial system, providing timely warnings and enabling preventive actions.
Indicators and signals that suggest the presence of financial imbalances, vulnerabilities, or risks that could lead to a crisis if not addressed in a timely manner.
Instances where markets fail to allocate resources efficiently, leading to distortions, inefficiencies, and systemic risks that can contribute to a financial crisis.
The set of laws, regulations, and policies that govern the financial sector, including prudential standards, consumer protection, and market conduct rules.
Economic variables and conditions, such as inflation, unemployment, interest rates, and fiscal and monetary policies, that can influence the occurrence and severity of a financial crisis.
The use of central bank tools and measures, such as interest rate adjustments and open market operations, to manage the money supply, inflation, and economic stability during a financial crisis.
Government policies related to taxation, public spending, and borrowing, aimed at stabilizing the economy and supporting recovery during a financial crisis.
The part of the financial system that includes banks and other financial institutions engaged in deposit-taking, lending, and other banking activities, which can be particularly vulnerable during a crisis.
The market for buying and selling financial instruments, such as stocks, bonds, and derivatives, which can experience significant volatility and disruptions during a financial crisis.
The sector that provides insurance coverage and risk management services, which can be affected by increased claims, investment losses, and liquidity pressures during a financial crisis.
Non-bank financial intermediaries and activities that perform banking-like functions, such as lending and borrowing, outside the traditional regulated banking sector, which can contribute to systemic risks and vulnerabilities during a crisis.
Independent organizations that assess the creditworthiness and risk of financial instruments and issuers, whose ratings can influence investor decisions and market dynamics during a crisis.
Financial contracts whose value is derived from an underlying asset or benchmark, such as options, futures, and swaps, which can amplify risks and contribute to market instability during a crisis.
The market for buying and selling mortgages and mortgage-backed securities, which can experience significant disruptions and defaults during a financial crisis, as seen in the subprime mortgage crisis.
The sector that includes residential and commercial properties, which can be severely impacted by declining prices, foreclosures, and reduced demand during a financial crisis.
The market for buying and selling shares of publicly traded companies, which can experience sharp declines, volatility, and investor panic during a financial crisis.
The interconnectedness and interdependence of national economies, which can transmit and amplify the effects of a financial crisis across borders and regions.
The risk of widespread disruptions and failures in the financial system, arising from interconnectedness, contagion, and vulnerabilities, which can threaten the stability of the entire economy.
The availability and accessibility of cash and other liquid assets in the financial system, which can dry up during a crisis, leading to funding difficulties and market distress.
The ability of financial institutions and borrowers to meet their long-term obligations and repay debts, which can be compromised during a crisis due to asset value declines and insolvency.
The level of capital and reserves held by financial institutions to absorb losses and maintain solvency, which is crucial for their stability and resilience during a crisis.