Chapter 13: Global Financial Crisis: A Study of Its Impact on Select S&P BSE Sensex Companies in India During 2005–2013

Financial crisis refers to a situation where there is a sudden decline in country’s GDP growth rate and the citizens of the country lose faith in the growth of the economy, associated with a huge lose in the monetary value of the financial assets and institutions. Financial crises are not uncommon events. Financial crises have occurred throughout all countries over the world, over decades starting from early seventeenth century. Though the causes of each crisis differ but they have some common characteristics. Those elements are remarkable change in credit volume, disbursement, increase in price of the assets, interruption in the smooth functioning of the financial system, decrease in the supply of external financing, problems in balance sheet in large scale, etc.