Which Are The Institution Responsible For Financial Crisis?

The main institution which is responsible for financial conditions in a country is the main federal reserve bank. Federal Reserve bank is also known as state bank in some countries. The Federal Reserve bank formulates all the policies such as monetary policy, fiscal policies, determines interest rates, maintain liquidity in the market, manages open market operations, determines discount rate and interbank rate etc. It also provides necessary funds to the other financial institutions which keep on circulating the funds within an economy. The commercial banks, depository institutions, lending institutions, non-banking institutions etc also play an important role in improving or deteriorating the financial conditions of a country.