How Financial Crisis Effects To Banking System?

1

1 Answers

Anonymous Profile
Anonymous answered
A banking system depends on the money possessed by a bank.....for example if banks have more money they'll be able to give more loans to there customers,,,this customer in turn may earn the profit in the business...and he is going to deposit this money in the banks....this again increases money of banks...and cycle then repeats...in financial crisis banks have less money thus reverse cycle runs there..affecting banks badly

Answer Question

Anonymous