Essays on rational absurdity of banking
In a recent survey we found 86% of participants reported Banks and FIs to be the biggest spammers. Banks need to realise that every interaction with customers, existing or potential, is a moment of truth. Pestering only leads to increased trust deficit as the customer starts to see an ‘aggressive marketer’ and not a ‘trusted partner’
From – 0.75% (Switzerland) to almost Zero in most of Europe to around 4% in India, Central Banks in most economies remain accommodative. Although inflation mostly remains benign, some high inflation economies like Argentina (38%) and Venezuela (39%), have their plates overflowing with challenges. While the GDP projections are encouraging, whether cheaper credit can fuel a rebound in economic activity, remains to be seen.
In 2020 Banks paid more than $12 Bn in fines for regulatory breaches. In India 40+ Banks and Non-Banks were fined by RBI. In this storyboard we uncover this curious case of Bank Penalties!
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.