International Research journal of Management Sociology & Humanities
( ISSN 2277 - 9809 (online) ISSN 2348 - 9359 (Print) ) New DOI : 10.32804/IRJMSH
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EFFECT OF GLOBAL ECONOMIC SLOWDOWN ON THE FINANCIAL SERVICES INDUSTRY IN INDIA
1 Author(s): DR. ABHIJIT
Vol - 8, Issue- 5 , Page(s) : 313 - 319 (2017 ) DOI : https://doi.org/10.32804/IRJMSH
While the current recession was triggered by the rising default rates on sub-prime mortgages in the US, the source of the problem was significant mispricing of risks in the US financial system. Easy monetary policy in major financial centres, globalisation of liquidity flows, wide-spread use of highly complex structured debt instruments and the inadequacy of banking supervision in coping with financial innovations contributed to the severity of the current crisis. The persistent under pricing of risks was suspected by several central banks for quite some time, but it was felt by many that these risks were widely dispersed through financial innovation and that they would not pose any serious problems to the banking system. When the sub-prime crisis did occur,