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The major events that have shaped the modern finance industry are:

The Great Depression (1929): The Great Depression originated in the US with the Wall
Street crash in October 1929. The effects of the depression spread across the world,
especially in the heavy industries. Capital requirements regulation, financial industry
oversights and the insurance of deposit accounts sprang out of this tumultuous period.

Black Monday (1987): On October 19, the stock markets across the world witnessed a huge
crash. This was the largest one day decline in the stock market history. The crash started in
Hong Kong, spreading to Europe and the US. Analysts blamed computer trading systems for
magnifying the losses.

Asian Financial Crisis (1990s): The Asian Financial Crisis was triggered by the collapse of
Thai baht as the government of Thailand decided to float the national currency. The nation
had a huge foreign debt at that point, driving it to the verge of bankruptcy. The crisis rippled
across the whole of Southeast Asia and has led to many emerging market countries to reduce
debts and build up foreign currency reserves.

Stock Market Downturn (2002): Stock exchanges around the world witnessed a significant
decline in March 2002. It was attributed to the bursting of the Dot-com Bubble, which saw
major Internet companies going bankrupt.

Sub-prime Crisis (2007): Credit markets faced major crunch due to large scale default on
loans. It led to the Financial Crisis of 2008 2009 and resulted in the bankruptcy, fire-sale
acquisition and government bailouts of finance industry giants such as Lehman Brothers,
Bear Stearns, AIG, Fannie Mae, Freddie Mac, Merrill Lynch, Wachovia, Northern Rock,
Lloyds TSB, HBOS, RBS and the entire banking system of Iceland. The world economy can
expect reduced growth rates and tighter regulations as a result of this crisis.

India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth
of existing financial services firms and new entities entering the market. The sector comprises
commercial banks, insurance companies, non-banking financial companies, co-operatives, pension
funds, mutual funds and other smaller financial entities. The banking regulator has allowed new
entities such as payments banks to be created recently thereby adding to the types of entities
operating in the sector. However, the financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 64 per cent of the total assets held by the financial
system.
The Government of India has introduced several reforms to liberalise, regulate and enhance this
industry. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate
easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These measures include
launching Credit Guarantee Fund Scheme for Micro and Small Enterprises, issuing guideline to
banks regarding collateral requirements and setting up a Micro Units Development and Refinance
Agency (MUDRA). With a combined push by both government and private sector, India is
undoubtedly one of the world's most vibrant capital markets.

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