A financial crisis is a situation in which the value of financial institutions or assets drops significantly, leading to a disruption in the normal functioning of financial markets. This can result in widespread economic distress, including bank failures, stock market crashes, or significant declines in asset prices. Financial crises often arise from factors such as excessive debt accumulation, asset bubbles, poor financial regulation, and macroeconomic imbalances. They can have far-reaching effects on the economy, leading to recession, increased unemployment, and a decrease in consumer and business confidence. Financial crises can also trigger government and central bank interventions to stabilize the financial system and restore trust in the economy.
The London Stock Exchange is facing an unprecedented crisis. In 2023, a staggering 88 companies have exited the market or shifted their primary listings elsewhere, while only 18 new entities…