The 2007- 2008 GLOBAL

FINANCIAL CRISIS
 STORY:
The 2007-2008 Global Financial Crisis was a severe
worldwide economic downturn that originated in the
United States, primarily due to the collapse of the housing
market and subsequent financial sector turmoil. It had
widespread repercussions, leading to a global recession,
bank failures, and significant economic challenges for
many countries.
 CAUSES
The 2007-2008 Global Financial Crisis had multiple
interconnected causes. Key factors include:

Housing Market Bubble:

A housing bubble formed as housing prices surged,
driven by risky lending practices and a high demand
for mortgage-backed securities.

Subprime Mortgage Crisis:

Risky subprime mortgages were issued to homebuyers
with poor credit histories. When many of these
borrowers began to default on their loans, it triggered
a cascading effect in the financial system.
EFFECTS
1. GLOBAL RECESSION
2. BANK FAILURES
3. HOUSING MARKET DECLINED
4. UNEMPLOYMENT
5. GOVERNMENT INTERVENTIONS
6. STOCK MARKET VOLATILITY
7. LONG TERM ECONOMIC IMPACT
 RESPONSE
1.Collaborate and Coordinate to other
institutions like government institutions
that might help financial institutions to
withstand the crisis.
2. Implement high-standard credit
management policy.
3. Avoid lending an amount of money
beyond borrowers capacity.
4. Improve risk management, and prevent
excessive risk-taking.
LESSONS APPLICABLE TO THE
CURRENT FINANCIAL SYSTEM
03. Avoid giving loans to
unqualified borrowers.

Strengthen regulatory frameworks to

Establish and enforce adequate

01.
ensure effective oversight of financial
liquidity and capital requirements

04.
institutions. Regularly review and update
regulations to address emerging risks and
prevent excessive risk-taking.
for financial institutions. This
helps ensure they have sufficient
buffers to withstand economic
downturns and market turbulence.

Take more seriously on considering

and filtering borrowers credit

02. worthiness and capacity and not

taking into considerations it's
collateral and the profit it can
05. Have adequate awareness of
financial market system

contribute.
 🫶
Presented By: ANTON AND FRIENDS

Thank you
very much!