Essays on rational absurdity of banking
How policy priorities, regulatory choices, and institutional trade-offs shape banking outcomes, often in ways that differ from stated intent.
Helicopter Money is a monetary policy concept proposed by economist Milton Freidman to overcome the liquidity and rate transmission challenges. However like everything else in policy making, there are no free lunches. Himanshu Mehra explains the concept and its risks.
The recent report by Internal Working Group (IWG) of RBI has made recommendations that run contrary to the practice followed in internationally, especially the recommendation to would allow industrial groups to own banks. Predictably, the report has been controversial. However, lost in the noise is a set of implicit assumptions that the IWG seems to have made, that further weaken its contentions. Nishikant Das assesses these assumptions.
Government has been considering privatising a few Public Sector Banks. But is privatisation the solution? Vimee Shharma evaluates from historical perspective
Emergency Credit Guarantee for MSME has been unveiled. GOI seems to have pleasantly surprised the banks. There are minimal ambiguities in the eligibility, end use, risk weights and limit assessment. However, the devil lies in the invocation process. Sumit Kakkar evaluates the fine print