Literature review on financial crisis and capital market

It assist scholar to collect data with regards to fulfilling aim and objectives of study so as to draw valid conclusion. There are several types of research design are used such as descriptive, explanatory, exploratory as well as hypothesis testing. Under this information will be gathered in the natural environment that aid to provide the information related to causes of recent financial crisis Creswell, It will prove to be effective to elaborate features of situation being studied, however it does not depict causal relation.

Literature review on financial crisis and capital market

Literature review deals with the article related to the topic Critical Management. It helps to gets clear idea about topic. Essentially, this collection of processes involves qualifying the extension of credit to a customer, monitors the reception and logging of payments on outstanding invoices, the initiation of collection procedures, and the resolution of disputes or queries regarding charges on a customer invoice.

When functioning efficiently, credit management serves as an excellent way for the business to remain financially stable. The process of credit management begins with accurately assessing the credit-worthiness of the customer base.


This is particularly important if the company chooses to extend some type of credit line or revolving credit to certain customers. Proper credit management calls for setting specific criteria that a customer must meet before receiving this type of credit arrangement.

As part of the evaluation process, credit management also calls for determining the total credit line that will be extended to a given customer. Several factors are used as part of the credit management process to evaluate and qualify a customer for the receipt of some form of commercial credit. The current ratio between income and outstanding financial obligations will also be taken into consideration.

Competent credit management seeks to not only protect the vendor from possible losses, but also protect the customer from creating more debt obligations that cannot be settled in a timely manner. Loans have become increasingly packaged for resale, meaning that an investor buys the loan debt from a bank or directly from a corporation.

Literature review on financial crisis and capital market

Bonds are debt instruments sold to investors for organizations such as companies, governments or charities. The investor can then hold the debt and collect the interest or sell the debt on a secondary market.

Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important as they invest in various forms of debt.

Financial assets, known as investments, are financially managed with 1 careful attention to financial risk management to control financial risk.

Financial instruments allow many forms of securitized assets to be traded on securities exchanges such as stock exchanges, including debt such as bonds as well as equity in publicly traded corporations.

Central banks, such as the Federal Reserve System banks in the United States and Bank of England in the United Kingdom, are strong players in public finance, acting as lenders of last resort as well as strong influences on monetary and credit conditions in the economy.

Finance for a business can't be undervalued and can be said that it's the lifeline of a business and is required for its wellbeing. It can be said to be a lubricant which keeps the business running.

Whether you have a small, medium or large business, you will always need finance, right from the beginning to promoting and establishing your product, acquiring assets, employ people, encouraging them to work for the development of your product and create a brand name.

In addition to that, a current business may need finance for expansion or making changes to its products as per the market requirements. Credit Management analysis is the process of determining the operating and financial characteristics of the firm from accounting data, profit and loss account and Balance Sheet.

The financial analysis is a starting point for making plans before using any sophisticated, forecasting and planning procedure.

Hence the main objective of financial analysis is to make a detailed study about the cause and effect of the profitability and financial condition of the firm.


Financial statements generally refer to four basic statements the Income statements i. The Financial Statements, taken together, give the accounting picture of the firms operations and financial position.

Sound financial health of a bank is the guarantee not only to its depositors but is equally significant for the shareholders, employees and whole economy as well.

As a sequel to this maxim, efforts have been made from time to time, to measure the financial position of each bank and manage it efficiently and effectively. With the integration of Indian financial sector with the rest of the world, the concept of banks and banking has undergone a paradigm shift.

Before financial reforms, Indian Banks were enjoying, in a protected environment with a strong cushion of the government and their banks.

With the integration of Indian financial sector with the rest of the world, the concept of banks 2 and banking has undergone a paradigm shift. Financial performance analysis is used as a general measure of a firm's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation.

It refers to an assessment of the viability, stability and profitability of a business, sub-business or project.In this paper, I review the literature that identifies corporate governance failures, attributes that contributed to the financial crisis, the impact and magnitude of these failures, and the recommendations that have been offered to correct the identified failures.

Literature review deals with the article related to the topic Critical Management. It helps to gets clear idea about topic. INTRODUCTION Credit management is a term used to identify accounting functions usually conducted under the umbrella of Accounts Receivables.

The global financial crisis of and the subsequent global recession highlighted the interplay this literature review uses the term “capital ratio” to indicate risk-weighted capital Literature Review on the Macroeconomic Impacts of Capital Requirements.

Empirical Literature on Financial Crises: Fundamentals vs. Panic I.

Literature review on financial crisis and capital market

Goldstein University of Pennsylvania, Philadelphia, PA, USA bank’s capital, reducing the amount available for inves-tors who come in the future. This creates strategic A banking crisis in this literature is manifested by large withdrawals out of the banking system. source of financial market movements) has long occupied a significant space in the literature attempting to explain crises (Keynes, ; Minsky, ; Kindleberger, ).

3 Financial crises are often preceded by asset and . medium-term labour market and social challenges of the current economic and financial crisis” and the concluding synthesis report “Building a sustainable job-rich recovery”. There is a robust modern literature on financial crises that policy makers in newly affected countries can.