Community Savings & Credit Guild Crisis of 1704
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This article or section is a work in progress. The information below may be incomplete, outdated, or subject to change. |
 Bank run at a local Community Savings & Credit Guild in 1704 AN. | |
| Date | 1704 AN |
|---|---|
| Location |
 Nouvelle Alexandrie |
| Cause |
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| Outcome |
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| Casualties | |
| Significant financial losses for depositors and investors in Nouvelle Alexandrie | |
| Widespread economic turmoil | |
The Community Savings & Credit Guild Crisis of 1704 was a financial disaster that affected the Federation of Nouvelle Alexandrie. It was characterized by the failure of numerous Community Savings & Credit Guilds (CSCGs). CSCGs are institutions that functioned akin to savings and loan associations, providing financial services including savings accounts and credit to local communities all over Nouvelle Alexandrie. The crisis had far-reaching consequences for the New Alexandrian economy, including a loss of public trust in the banking system and significant financial hardship for countless citizens.
Background
The CSCGs played a crucial role in the economic landscape of Nouvelle Alexandrie, particularly in the housing market, as they provided mortgages to a large segment of the population. Initially, these institutions operated under a conservative framework, with a focus on community-based savings and mortgage lending. However, in the years leading up to the crisis, a number of CSCGs began to engage in risky lending practices and speculative investment activities, largely due to a combination of deregulation in the financial sector and an aggressively competitive market environment.
