International bank managment essay Example | Topics and Well Written Essays - 1250 words

International bank managment - Essay Example They include market crashes and decreased GDP of any country. For the past a hundred years, there have been several economic crises in the world. Financial crises compose such economic crises. In fact, it looks like each decade has its own set of financial crises, which usually originate in one country and spread to the rest of the world. The 1930’s saw the Great Depression; the 1980’s saw the savings and loans crisis in the US and also the loan default crisis. The 1990’s saw the Asian currency crisis among a plethora of other financial hitches. The first decade of the twenty first century has not been spared either. The 2007/2009 financial crisis is considered in some quarters to be the largest since the Great Depression. This essay is going to compare the financial crises of the 1980’s with those of the 1990’s. The similarities and differences between the two periods will be given and explanations for the same sought. The essay will conclude with the writer’s opinion on what the financial world should expect in the first decade of the 21st century as far as financial crises are concerned. There were several financial crises in the 1980’s around the world. But perhaps the major ones were the debt crisis and the American savings and loans crisis (Carrasco 2008). The latter is referred by many as the 1980’s savings and loans scandal, a befitting term considering the factors that were surrounding it. According to Carrasco (2008), this crisis had its origins in the 1970’s. It is the accumulative effects of what transpired in the 1970’s that brought about the crisis of the 1980’s. There was what Wharton and Allen (2009) refers to as â€Å"petrodollar recycling† in the 1970’s. In the 1970’s, there was a considerable rise in the price of oil on the world market. This saw the oil exporting countries of the world, especially those from the Middle East, making considerable profits