Summary
Contents
Do you often wonderIs my money safe in banks? India is grappling with its worst banking crisis ever, and we are still trying to figure out what landed us here. This book analyses the role of the government and RBI in allowing the problem to reach the dimension it has assumed today. When will the never-ending NPA issue be resolved? Does it make sense to merge two PSBs when the culture and governance structures are alike? Should the RBI reserves be used in times of crisis? Should the tenure of a CEO be long or short? The book ponders and debates on some of these questions. Hits and Misses presents the two sides of the Indian banking story by giving an account of the reforms as well as quandaries in times of extraordinary economic and political challenges. The book answers many relevant questions by highlighting the highs and lows of the banking sector, which became subjects of debate in media and financial circles.
Capitalizing PSBs : Whose Baby Is It?
Capitalizing PSBs : Whose Baby Is It?
PSBs are owned by the government and for all practical purposes it looks like that the latter is not willing to give up control of these entities. The reasons, as argued elsewhere, can range from social-istic tendencies to controlling the flow of credit decisions and can be taken as given. Against this background, what should be the role of the government when it comes to capitalizing banks?
Capital adequacy is probably the most critical regulatory norm for banks which has been designed by the BIS framework that has been evolving over time and has been implemented in stages. The rule says that banks have the backing of what is called own capital which ...