what causes a financial crisis 
a financial crisis can be caused by many factors maybe too many to name however often a financial crisis is caused by overvalued assets systemic and regulatory failures and resulting consumer panic such as a large number of customers withdrawing funds from a bank after learning of the institution s financial troubles some believe that financial crises are an inherent feature in how modern capitalist economies function where the business cycle fuels speculative growth during economic booms only to be met by contractions and recession during these contractions borrowers default on their loans and creditors tighten their lending criteria 