Effect of Global Financial Crisis on Banks in Pakistan
CHAPTER #01
BACKGROUND OF SUBJECT AND STATEMENT OF PROBLEM
|1.1 |Introduction |
|1.2 |Evolution and Present Status |
|1.2.1 |Pakistan’s Banking Sector and Foreign Banks |
|1.3 |Statement of Problem |
|1.4 |Significance of Study |
|1.5 |Scope of the Study |
|1.6 |Delimitations |
| | |
1.1 Introduction:
The financial crisis, which has been developing at Wall Street, has got people worried in developing countries around the world. The stock exchanges, in developing countries have crashed and things look bleak for the financial markets. The people are drawing parallels with the Great Depression of 1929, but this time the world economy seems far more reliant and countries are far more intertwined with each other.
Hit by an unprecedented series of multiple events and shocks, the Global Financial System is in a state of deep distress. One after another, large global banks have faced extensive losses, some were subjected to runs, others wrapped up their business, while yet others went for bail outs, mergers or other forms of restructuring. Stock markets tumbled, indices declined and their market capitalization was severely eroded. The financial crisis, triggered by an isolated problem of subprime mortgages and other alternative investment vehicles which constituted only a small
BACKGROUND OF SUBJECT AND STATEMENT OF PROBLEM
|1.1 |Introduction |
|1.2 |Evolution and Present Status |
|1.2.1 |Pakistan’s Banking Sector and Foreign Banks |
|1.3 |Statement of Problem |
|1.4 |Significance of Study |
|1.5 |Scope of the Study |
|1.6 |Delimitations |
| | |
1.1 Introduction:
The financial crisis, which has been developing at Wall Street, has got people worried in developing countries around the world. The stock exchanges, in developing countries have crashed and things look bleak for the financial markets. The people are drawing parallels with the Great Depression of 1929, but this time the world economy seems far more reliant and countries are far more intertwined with each other.
Hit by an unprecedented series of multiple events and shocks, the Global Financial System is in a state of deep distress. One after another, large global banks have faced extensive losses, some were subjected to runs, others wrapped up their business, while yet others went for bail outs, mergers or other forms of restructuring. Stock markets tumbled, indices declined and their market capitalization was severely eroded. The financial crisis, triggered by an isolated problem of subprime mortgages and other alternative investment vehicles which constituted only a small