Any economies in the modern world are defined by their ability to deal with the crisis situation. The crisis is interest rate fluctuation, credit risk, and other financial anomalies. This risk can be avoided by proper planning and executing it at the right time, the growing market of Asia especially the China and India provides enough opportunity to strengthen the market Financial stability in developing countries depends on, among other things, the robustness of their domestic financial sector, the soundness of their macroeconomic policies, the volatility of international capital flows, and the overall stability of the global financial system. There is the need of the hour to have a good contingency plan to have a robust structure to deal with the crisis. There are many steps taken by the Asian market to ensure enough stability to the financial sector. The economic activity like liberalization, opening of the domestic market for international firms also help indirectly to strengthen the banking system. Policy insights include that: Asia should and will play a much larger role in global financial governance; to achieve stability and growth in emerging economies, more is needed than just a better regulated and supervised domestic financial system; in Argentina and Brazil, the recent financial crises cannot be attributed to a poorly regulated banking system as regulation had been already stricter than in the United States. In the present situation of crisis and the poor performance of the Eurozone, the need for stronger economies in the Asian region is must have a better balance in the world economies. Banking crises in emerging markets in the 1990s were associated with major macroeconomic disruptions: sharp increases in interest rates, large currency depreciations, output collapses and lasting declines in the supply of credit. Bank credit has since recovered in a number of countries, and there have been significant changes in banking structure, performance and risk management capacity.