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Tag Search: “banking”

Credit risk management policies of banks: A new approach

Despite increasing robustness of banks and multipurpose liquidity provided by the Reserve Bank of India, there is no perceptible improvement in credit growth. K. Srinivasa Rao proposes a new approach ...

  • Perspectives

Impact of information disclosure on consumer behaviour: The case of high-risk bonds

In April 2021, Yes Bank was fined by India’s market regulator for inadequate information disclosure – high-risk bonds were mis-sold to high net-worth investors without accurately informing them about ...

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‘Consumerisation’ of banking in India: Cyclical or structural?

Over the past decade, India’s banking sector has undergone a transformation in terms of the proportion of credit extended to consumers and industry – with consumer credit now accounting for a larger s...

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How open is India's capital account?

Although India began opening up its capital account in the mid-1990s, the approach towards financial liberalisation has been cautious. Tracing changes in the de-facto openness of the country’s capita...

  • Perspectives

A decade of credit collapse in India

The government and the Central Bank have undertaken various measures to protect the banking and finance sector from the adverse impact of the Covid-19 crisis. However, despite historically low interes...

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Strengthening risk-management capabilities in the financial sector

Non-banking financial companies are rapidly inundating the financial intermediation space. While this trend has enabled greater autonomy in operations and business diversification, it has also accentu...

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From abundant global liquidity to selective lending: How corporate finance has changed

Global credit has experienced significant changes in the last two decades. Analysing data on 1,160 Indian firms for the 2000-2017 period, this article shows that in the period following the global fin...

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Are moneylenders financial intermediaries?

A majority of borrowing in rural households in developing countries is from informal lenders. This article examines the relationship between these informal lenders and banks in rural India, from the e...

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‘Bad bank’: A good idea in bad times

Commenting on the ‘bad bank’ proposal of the 2021-22 Union Budget, K Srinivasa Rao contends that the bad bank is a good idea in bad times – as a transitory solution with defined timelines – but it can...

  • Perspectives

Of twists and turns: Monetary policy and ‘term premium’

As India’s economic growth slowed down in recent years, the reliance on monetary policy to stimulate growth increased significantly – especially during the pandemic. Analysing data from 2018-2020, Raj...

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Budget 2021-22: Case for a ‘bad bank’

A key announcement in the 2021-22 Union Budget is the formation of a ‘bad bank’, to better manage the problem of non-performing assets in the financial services ecosystem. In this post, Ananth Naraya...

  • Perspectives

Inflation targeting and capital flows

Current law in India mandates a review of the target inflation rate by 31 March 2021 for a five-year period. Several critics have called for abandoning the flexible inflation targeting regime altogeth...

  • Perspectives