A financial crisis refers to a situation where there is a significant disruption in the financial system, usually characterized by a sharp decline in asset prices, insolvency of financial institutions, and a lack of liquidity in the market. These crises can occur due to various factors such as economic downturns, excessive risk-taking by financial institutions, regulatory failures, and external shocks. Financial crises can have severe consequences on the economy, leading to a contraction in economic activity, high unemployment rates, and decreased consumer and investor confidence. Governments and central banks often intervene during financial crises by implementing monetary and fiscal policy measures to stabilize the economy and restore financial stability. Researchers in this area study the causes, consequences, and policy responses to financial crises, as well as ways to prevent and mitigate their impact in the future. This research is crucial for policymakers, economists, and financial practitioners to better understand and manage these complex and systemic events.