Impact of the GFC (Global Financial Crisis) on Banking Activities
Global Financial Crisis was caused by the failure of free market forces economic ideology. In 2007, the American financial environment was thrown in to turmoil with most households finding it difficult to meet the high rates of mortgage. This was followed by tightening of credit by financial institutions as a control measure against possible bad debts (Goodhart, 2008, p. 331). The crisis later spread to Europe, Asia and Africa. Evidently, the GFC posed a great threat to financial institutions, which are dominated by banks.
Banks refer to the intermediary institutions which lend money to units with deficits and borrow from ...
