The Role of the Banking System in the Emergence of the 2008 Global Financial Crisis: An Economic Perspective

Throughout history, the world has faced various global crises. The global crises that have occurred have significantly impacted the world economy. The major global crises that have influenced the global economy can be listed as the Great Depression, the Mexican Crisis, the Southeast Asian Crisis, the Russian Crisis, the Argentine Crisis, and the 2008 Global Financial Crisis, which is the focus of this study. In order to be prepared for potential future crises, it is crucial to identify the underlying causes of past crises and take appropriate preventive measures. The global financial crisis that began in the last quarter of 2007 and manifested its effects in 2008 ultimately evolved into a worldwide financial crisis, significantly impacting the global economy. The aim of this study is to identify the causes of the 2008 global financial crisis, explore the measures that can be taken against such crises, analyze its economic impacts on a global scale, and examine the role of the banking system in the emergence of the crisis. In this context, the study elaborates on the causes of the crisis, the measures taken or that could be taken in response, its economic implications, and the role of the banking system in its emergence. Securitization, inadequate regulatory oversight by credit rating agencies, lack of transparency, and the issuance of careless loans have been identified as primary factors contributing to the crisis. Therefore, it can be asserted that the banking system played a significant role in the emergence of the global financial crisis. Keywords : Global Crisis, 2008 Global Financial Crisis, Banking System