The second was to taper further and then review the situation again in May. The third option was to cease bond purchases altogether in February.
The first of such crisis took place in the late 1940s and early 1950s, mainly as a result of lack of appropriate regulation, leading to the collapse of about 21 of the 25 indigenous banks which had been established by 1954. While these failures were resolved mainly through self-liquidation, the outcome was a bitter experience, especially for depositors who lost their money. 3.