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Tag Search: “banking”

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...

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Covid-19 crisis: Response should not undermine institutions

The unprecedented economic crisis triggered by the Covid-19 pandemic has resulted in calls for drastic actions on part of the government and RBI. In this post, Sengupta and Vardhan content that these ...

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Covid-19 crisis: How policy can revive lending appetite among banks

Amid the economic crisis triggered by the Covid-19 pandemic, the expected surge in non-performing assets and its potential impact on the fragile capital base of banks, is alarming. In this post, Srini...

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Lead Bank Scheme: Does organisational design matter?

The Lead Bank Scheme of the RBI involves a ‘lead bank’ in each district of India that coordinates financial services in the district, and a ‘convenor bank’ in each state that monitors these activities...

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Achieving the target of complete financial inclusion in India through fintech

A significant number of people in India remain outside the purview of the formal financial system. Use of financial echnologies can help address the gaps in financial inclusion left by the traditional...

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Effect of conflict on bank lending: Evidence from Indian border areas

Conflict can affect economic outcomes through the decisions of key individuals. This article studies the effect of repeated incidents of shellingacross the India-Pakistan border, on loan officers work...

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Productivity growth in Indian banking: Who gained?

Since the deregulation and privatisation reforms of the early 1990s, Indian banking has witnessed many significant changes. This article finds that the sector experienced steady productivity growth un...

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