The term of financial crisis means that the situation happen when some of financial assets going loss and crashed a large amount of the nominal value. It would effects to the financial institutions when investors take out or withdraw all of their assets in the banks. This is because those of investor expect that the value of the assets would fell down if them saving in that institution.
Besides that, the financial crisis also can be defined when the assets in financial institution is over valued. The valued of the assets would be drop rapidly if the price fall in the lower price and give the bad impacts on our economic. The economic was suffered effects of the offering lower goods price and the business cannot run well because not profitable.
There a few type of financial crisis which are involved banking crisis, speculative bubbles and crashed and international financial crisis. All of the crisis have the own factors that financial crisis happen. Firstly, banking crisis happen because of the larger withdrawal the amounts of money. As we know, the bank was make the investment using the money that people invest. The banks can make more profit when invest of that capital. Logically, if everyone want withdraw all of the money at the same time the bank will suffer insolvent.
Secondly, speculative bubbles and crashed. The factor of this crisis is about the buyers buy the assets in the purpose to resell these assets with the higher price in the future. The things are riskier in assets price effects on market participants focus in these assets to resell it. Thus, it is difficult to predict whether an assets price actually equals to the fundamental value. So, it is hard to detect bubbles reliably.
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...try reportedly 1.9 million register migrant workers and 600,000 unregistered ones. Thus, to solve this problem Malaysia still can hired those workers for the services and required some skill but should ensure that they treated fairness and compulsory to have legal ways needs the permits.
In other side, building good governance and ethical regulatory framework. Obviously, some of the companies do not follow the rules under Bursa Malaysia Listing Requirement and Malaysia Code Corporate Government. We can see some of the companies still have corruption in financial system and then them manipulated the record so that the corruption clear from others. This attitude also can bring to the economic recession if the peoples still using the dirty ways. So, the government should concern and take actions to maintain the social cohesion and reduce the corruption.
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- INTRODUCTION The term of financial crisis means that the situation happen when some of financial assets going loss and crashed a large amount of the nominal value. It would effects to the financial institutions when investors take out or withdraw all of their assets in the banks. This is because those of investor expect that the value of the assets would fell down if them saving in that institution. Besides that, the financial crisis also can be defined when the assets in financial institution is over valued.... [tags: policy, banking crisis]
2029 words (5.8 pages)
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