Manuscript Number : GISRRJ214607

Global Financial Crisis on Banking Sector and Economic Slowdown in India

Authors(1) :-Dr. Pankaj Yadav

This study aims to find out the impact of global financial crisis on banking sector and economic slowdown in India. The current global financial crisis has severely shaken the entire banking system of the US and many parts of Europe including India. Obviously, it can be said that India's economic development is also likely to have an impact, but it is not possible to tell how much. Slowing economic activity also reduces revenue, which directly impacts development plans. Infrastructure development in particular can be significantly reduced. The crisis started due to the submerged housing debt of America is hurting the entire global economy into recession. According to some statistics, the losses related to subprime crisis of banks have reached the level of $ 588 billion globally. United States banks and mortgage companies account for 57% of this deficit while European financial companies account for 39%. Banks and financial institutions have considerable exposure to the real estate sector in India as well. But due to absence of active securitization and credit derivatives, the falling property values may not have much impact in the second and third stages. Also, the risk weight for real estate was increased by the Reserve Bank of India shortly before. The latest NPA crisis has been followed by a sharp fall in investment growth and a sharp slowdown in the economy. The dominance of state-owned banks in the economy is one of the major factors responsible for the crisis. In India, banks owned by government or public sector banks (PSBs) account for 70 per cent of banks' overall lending. These banks have been more affected during the recent banking crisis

Authors and Affiliations

Dr. Pankaj Yadav
Department of Commerce, Bareilly College, Bareilly

Global Financial Crisis, Economic downfall, NPA, Development. RBI, PSBs

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Publication Details

Published in : Volume 4 | Issue 6 | November-December 2021
Date of Publication : 2021-12-30
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 29-42
Manuscript Number : GISRRJ214607
Publisher : Technoscience Academy

ISSN : 2582-0095

Cite This Article :

Dr. Pankaj Yadav, "Global Financial Crisis on Banking Sector and Economic Slowdown in India ", Gyanshauryam, International Scientific Refereed Research Journal (GISRRJ), ISSN : 2582-0095, Volume 4, Issue 6, pp.29-42, November-December.2021
URL : https://gisrrj.com/GISRRJ214607

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