Financial Crisis Management

Abstract Financial crisis management deals with the policies and measures adopted by governments and financial institutions to prevent, manage, and recover from financial instability. Financial crises arise due to factors such as excessive borrowing, weak financial regulations, poor risk management, and sudden economic shocks. Such crises adversely affect banking systems, businesses, and overall economic growth.This study focuses on the importance of early identification of financial risks and timely intervention by monetary and fiscal authorities. It highlights key crisis management strategies such as liquidity support to banks, fiscal stimulus policies, regulatory reforms, and effective coordination among financial institutions. Special emphasis is given to the role of transparency, accountability, and communication in restoring public confidence. The study also examines major financial crises with reference to the Indian economy and evaluates the measures adopted to ensure economic stability.The paper concludes that strong financial governance and proactive crisis management frameworks are essential for minimizing the impact of future financial crises and promoting sustainable economic development.