Finanacial Crises Presentation

8/8/2019 Finanacial Crises Presentation

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Financial Crises


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Credit Management

Group Members:

Rameez Tariq

Adil Arshad

Amir Alvi

Bilal Hussian

Inayat Karim

Masood Anwar

Hamid Raza


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Introduction

Capitalism is an economic system in which land labor

production pricing and distribution are all determined bythe market.

The term financial crises is broadly used for many

things means if there is great loss happen than its calledfinancial crisis but its mainly related to banking panics.Other situations in which we often use this term is instock market crashes.


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The global financial crisis in 2008-09 which are still on the

go, they actually started from the 20th century and theyhave been increasing since then.

In the end of 20th century the U.S housing prices after a

multiyear started declining, the mortgage prices had been ata very high rise before that and suddenly they started

declining at the end of 20th century.


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Pakistan seems to be one of the hardest hit with this global

crisis. Its economy is already in crises. Saudi Arabia has

refused to give Pakistan a financial concession on the oil

trade.


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Causes of the Crisis

Fundamental mispricing in the capital markets

.

Mistakes made by the banks by keeping the federalfunds rate too low for too long created bubble and

housing bubble

Plus the failure to control poor underwriting standards inthe mortgage markets


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The Crisis Getting Global

Europe

Africa

Asia


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The Financial Crisis and

Pakistan:Two Type of Crises

1. Economic Crises

2. Political crises


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Economic Crises Inflation

Trade deficit

Balance of payment

Foreign exchange reserves

Circular debt

Poor performance of banking sector

GDP growth rate Decline


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Effects of Crises Weaker export revenues

Further pressure on current accounts and balance of

payment(BOP) Lower investment and growth rates

Lost employment

Lower growth translating into poverty

More crime, weaker health systems and even more

difficulties

Meeting the millennium development goals


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Inflation

Rising food and fuel prices have been a major source of

inflationary pressure in South Asian countries especially

Pakistan.

In the year 2009 core inflation rose to 18% from the

14.7% 2008.


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How Tackle the Situation?

Tax breaks will be given to the industry to produce the

product.

Agriculture sector needs a greater support Increasing supporting programs for the labor demanding

activities.

Reduction of the financial policy and decreasing the

rates of productive sector Cash subsidies


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THANKS

Finanacial Crises Presentation

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Transcript of Finanacial Crises Presentation