Two countries, Finland and Sweden, had financial crises in the early 1990s. The crises were caused by a mix of unexpected events and mistakes in economic and regulatory policies. Despite financial liberalization, the crises were not solely due to that. The real economy suffered due to the impact on borrowers' finances, but there was not strong evidence of a credit crunch. Both countries acted quickly and decisively to manage the crises, leading to a relatively fast recovery in their financial sectors.