Financial crisis: is a reduction in the general availability of loans or credit or a sudden
tightening of the conditions required to obtain a loan from the banks. It is also known as the
credit crisis. The 2007-2010 crisis was triggered by a liquidity shortfall in the United States
banking system caused by the overvaluation of assets. It resulted in the collapse of large
financial institutions, the bailout of banks by national governments and downturns in stock
markets around the world.