Causes and Effects of Banking Crises, and How to Deal with Them Effectively

Abstract

This study shows that the Banking crises are often caused by a combination of internal factors,such as poor risk management and institutional corruption,and external factors, such as global economic changes.Weak oversight and regulation by regulators contribute to the aggravation of crises and delay the early detection of problems.The impact of banking crises extends to the macroeconomy, leading to a loss of confidence in the banking system and a slowdown in economic growth.It is necessary to strengthen regulations and establish effective control systems to improve banks’ resilience to risks.