Beyond the headline-grabbing issues, the Indian economy is struggling to solve a critical problem: How to restore and maintain financial stability on a durable basis. In this book titled, Quest for Restoring Financial Stability in India, Former Deputy Governor of RBI, Dr. Viral V. Acharya, talks about his quest for restoring financial stability in India and offers a concrete plan for sustained improvement. Dr Acharya shares a feasible plan to address the recapitalization needs of public sector banks, offering solutions on how to improve credit allocation by credit intermediaries and establish viable and efficient capital markets. Elucidating the need-of-the-hour reforms, this book also raises several stark and unanswered questions related to the re-emergence of fiscal dominance in India, not just of monetary policy tools but also of banking regulations. It makes a persuasive case for striking the right balance between the government, centralbank, private sector and markets, in order to improve long-run growth prospects for the real economy.
Part 1: Resolving Non-Performing Assets (NPAs) and Recapitalizing Banks
- Chapter 1: Some Ways to Decisively Resolve Bank Stressed Assets
- Chapter 2: A Bank Should Be Something One Can ‘Bank’ Upon
- Chapter 3: The Unfinished Agenda: Restoring Public Sector Bank Health in India
- Chapter 4: Prompt Corrective Action: An Essential Element of Financial Stability Framework
Part 2: Creating a Public Credit Registry
- Chapter 5: A Case for Public Credit Registry in India
- Chapter 6: Public Credit Registry (PCR) and Goods and Services Tax Network (GSTN): Giant Strides to Democratize and Formalize Credit in India
- Chapter 7: Some Reflections on Microcredit and How a Public Credit Registry Can Strengthen It
- Chapter 8: What Can India's Banking System Learn from Shampoo Sachet Revolution?
Part 3: Incorporating the Financial Cycle in the Monetary Policy Framework
- Chapter 9: Monetary Policy under a Changing Financial and Macroeconomic Environment
- Chapter 10: Managing the Financial Cycles in EMEs: A Central Banker's Perspective
Part 4: Improving Monetary Policy Transmission
- Chapter 11: Monetary Transmission in India: Why Is It Important and Why Hasn't It Worked Well?
- Chapter 12: Improving Monetary Transmission through the Banking Channel: The Case for External Benchmarks in Bank Loans
Part 5: Developing Viable Capital Markets and Ensuring External Sector Resilience
- Chapter 13: Understanding and Managing Interest Rate Risk at Banks
- Chapter 14: Global Spillovers: Managing Capital Flows and Forex Reserves
- Chapter 15: Development of Viable Capital Markets: The Indian Experience
Part 6: Striking the Right Balance: Enhancing the Autonomy of the Central Bank, the Markets and the Real Economy