Monday, July 23, 2012

Finance ministry must leave banking regulation to Reserve Bank of India

........ Clearly, this does not augur well for the economy. If the household sector saves less, borrowing costs are unlikely to stay low. Cost of capital could actually move up. In an economy faced with flagging growth, prevalence of high borrowing costs is the last thing required. The finance ministry must think again, and leave banking regulation to the banking supervisor.

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