CAUSES AND EFFECTS OF SUBPRIME MORTGAGE ON ECONOMIC CRISIS

Author Name: Dr. Vikas Tiwari

Volume/Issue: 03/07

Country: India

DOI NO.: 08.2020-25662434 DOI Link: https://www.doi-ds.org/doilink/12.2022-48316544/UIJIR

Affiliation:

Assistant Professor (Management), Rajkiya Engineering College, Sonbhadra, India

ABSTRACT

The banking industry in India, however, seems to be impervious to a global slowdown, is not disconnected to the world economy. The economic instability and slowdown in developed countries, especially in US, may affect the economic stability and banking industry of India to a great extent. The economic slowdown and declining banking industry in US in the last decade, however, not much affected its counterpart in India, laid down remarkable influence in India and its sub-continental economy. The line of action, the banking industry in India is going along might face the similar problem the US banking and economy has faced in last decade. However, the study of key causes and their effects on the weakness and instability of economy in US from 1994 to 2006 might be proved a reference frame to plan a healthy economy for India. In the present paper, the underlying causes and effects of subprime mortgage on economic crisis is studied.

Key words: Banking Sector, Lending Money, World Economy, FMCG, Subprime Mortgage Crisis