Banking Union answer to EU debt woes? Experts discuss

Major banks from the big countries that have not received any recapitalization will be treated quite gently by the ECB

Professor Charles Goodhart former member of the Bank of England's Monetary Policy Committee and Shayamla Gopinath, former Deputy Governor of the RBI share their views on how long will it take to form a banking union and whether European governments will willingly give up their authority over their domestic banks............

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Does the alarming increase in corporate debt restructuring signal a financial crisis for India?

....The incentive for banks to be optimistic is understandable. Apply default rates to the total amount of corporate debt included in the CDR referrals, and gross NPAs of the banking system (currently 2.9 per cent) may go up by about Rs 70,000 crore. That would take the gross NPA ratio to total assets of the banking system to almost 8 per cent. Provisioning requirements and the impact on bank balance sheets could well blow a big hole in them.

Not everybody agrees, however. “Our banking system’s NPA ratios are much better than those in several developed economies,” says Deepak Singhal, Chief General Manager at the RBI’s Department of Banking Operations and Development. But he admits the new Basel III requirements could put a lot of stress on banks’ capital needs. “It could come from the government, capital markets and internal accruals, or a combination of all three.”...........

 

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Let's farm along with nature, not against it

...........Scientist M S Swaminathan in his report "the MS Swaminathan Task Force Report on agricultural biotechnology" highlights that areas of biodiversity like the Western Ghats should be protected from GM crops. Unfortunately, the government has turned a blind eye to these recommendations and decided to introduce GM crops in India forcefully, by pushing through the Biotechnology Regulatory Authority of India (BRAI) Bill, which proposes a single window clearance system manned mainly by biotechnologists to approve of GM crops...................

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Where is the watchdog?

With the Indian rupee falling down at an all time low and there is no guarantee that it will not fall further. As a watchdog, the RBI should act fast to arrest this dangerous downward slide....................

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बैंकों से सालभर में मिले डेढ़ लाख के नकली नोट

रायपुर ! राजधानी के विभिन्न बैंकों से पुलिस को डेढ़ लाख रुपए के नकली नोट मिले हैं, जिसे अज्ञात आरोपी द्वारा जमा किया गया था। इन नोटों को आरबीआई परीक्षण के लिए भेजा गया था, जहां नोटों के नकली होने की पुष्टि हो गई है।...............

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Islamic banking proposal being considered

....."We told the RBI officials that even European and Western countries have introduced the system. They are providing a level playing field. A few banks like HSBC and Citibank have started Islamic banking cells in Gulf countries. India should not be left behind,".......

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To Readjust The Bar

It’s a legal wrangle over legal practice. The Supreme Court interim order last week, on a petition filed by the Bar Council of India, on the contentious subject of allowing foreign law firms into the country, has rung in the final round of a battle that has raged for the past 18 years. The apex court adjudged that ‘practice of law’ involved both litigation and ‘desk work’ and instructed the Reserve Bank of India not to issue any clearance to any foreign law firm, laying the ground rules for a hearing later this year...........

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Airlines stressing out bank assets

......Banks have burnt their fingers by lending to this sector, which is under immense pressure due to rising fuel costs, mismanagement and predatory pricing. According to the Financial Stability Report released recently by the RBI, 10 banks (predominantly public sector banks) accounted for around 86 per cent of the credit to the airline sector......

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Breaking the Indian gold bug

A senior policy maker has suggested that the authorities are now looking at the cause rather than symptoms of the growing problem

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