Introduction:
The financial crises are major disruptions in financial markets characterized by sharp declines in asset prices and firm failures (11). The global melt down of 2007-08, the Great Depression of 1929 and South Asian crises of 1997 tested the efficiencies of concerned regulatory authorities across the world. Financial crises moves like cyclone and spirals down to all connected economies (13). Whether financial crises emerges in the developed countries or in the developing countries, the history witnesses that it has invariably led concerned economies into deep recession, unemployment, loss of public confidence, domestic and international trade reversal and even capital flight. The regulatory authorities engaged in watching and monitoring health of concerned economies have to proactively respond to mitigate and resolve the crises. There could be different causes for financial crises such as ongoing double digit inflation / uncontrolled monetary expansion, unsustainable internal or external public debt, excessive credit booms, large capital inflows, large current account deficits, balance sheet weaknesses due to maturity mismatches of public debts, fall out of impracticable exchange rate mechanism followed and currency crises (3).
The selection of ways and means of mitigating and resolving a financial crisis and accelerating economic recovery is dependent upon root causes leading to financial crises. The policy options selected by regulatory authorities may be debatable. The debate could emanate from objectives of the policy or consequences / results. Object focus debates revolve around reducing the fiscal costs of financial crises or limiting the economic costs or achieving long-term, structural reforms. The result focused debates revolve around restoring the public confidence and economy, restoring growth or achieving of desired restructuring.