Policy Logic

How policy priorities, regulatory choices, and institutional trade-offs shape banking outcomes, often in ways that differ from stated intent.

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    A Case for Corporate Ownership of Banks

    Amit Balooni

    The question of permitting Non-Financial Corporates (NFCs) into banking is well debated. While the jury is still out, the bias is clearly towards ‘NFC ownership of Banks is bad’. However the existing template of bank licensing that excludes NFCs’, is not without loopholes either. The moot points, therefore, are – does NFC ownership significantly increase the existing risks? and, can the risks be mitigated? In this article, we probe these questions, making a case for having NFC owned banks

  • RBI empowers CRO office: Endeavour to make NBFCs bullet proof!

    Sumit Kakkar

    In a recent circular RBI has made a high decibel statement about the CRO’s independence and has put a lot of onus on the boards of NBFCs. Importantly, CRO office cannot be subordinated to any other department. But has the regulator stopped a tad short of empowering the position enough? Sumit Kakkar evaluates

  • How are ‘Global Systemically Important Banks’ (G-SIB) monitored under BASEL

    Amit Balooni

    Failure of a Systemically Important Bank amplifies the impact on world economy for two reasons. Firstly, banking services in many countries rely heavily on these banks. Secondly, it shakes customer confidence in banks which may trigger a contagion effect. How are such #TooBigToFail banks identified and monitored under current BASEL norms? Amit Balooni provides a quick overview of the process and its disadvantages