Lessons from the 2008 Global Financial Crisis can help us avoid policy mistakes during the Covid-19 pandemic, especially with respect to inflation & bad loans.
Fear of probe agencies investigating bad loans left a deep scar on banking officials, raising their risk-averse nature to lending. RBI wants Kamath panel to take care of those fears.
In a blog, ex-finance secretary Subhash Chandra Garg said 80% of bank lending was to non-essential sectors that have completely stopped functioning in the lockdown.
In Bad Money, Vivek Kaul writes how public sector banks refrained from recognising bad loans because that meant setting aside money to meet these losses.
SBI has been helped by the resolution of some large bad loan accounts, such as Essar Steel India Ltd, but future profit may be constrained by slowing economy.
The RBI assessed that Yes Bank’s non-performing assets stood at Rs 111.6 billion as of March 31, more than the Rs 78.8 billion the bank had disclosed for the year.
RBI data suggests bad loans issue is anything but resolved and coupled with the larger economic slowdown, bankers’ proclamations can’t be taken too seriously.
Canada faces serious foreign interference issues, but these challenges must not be weaponized to unfairly target friendly and important allies like India.
In Episode 1544 of CutTheClutter, Editor-in-Chief Shekhar Gupta looks at some top economists pointing to the pitfalls of ‘currency nationalism’ with data from 1991 to 2004.
Among 19 Indian firms sanctioned by US Treasury Dept was Lokesh Machines Ltd accused of coordinating with 'Russian defence procurement agent to import Italy-origin CNC machines'.
While we talk much about our military, we don’t put our national wallet where our mouth is. Nobody is saying we should double our defence spending, but current declining trend must be reversed.
RBI Governor a toy in Govt hand so nothing to worry after distributing money to some Indians to show generosity to public. Indian voters are mesmerized in the name of religion and the party rules, si nothing to worry for govt and the governor post.
When will modi and the rbi learn not to make mistakes from their very own blunders,,, they will not and never as all know he is not one to listen to about his mistakes as he considers himself a proud horse,,, never learning and only accusing
When nothing seems to be working using common sense would alleviate financial stress across all sections of society.
India has two economic model one of which is cash based from cities to villages.
If you apply complex economic theory to this model and expect wonderful quick results then you have failed as an economist.
To drive growth for this cash based model you have to empower people with buying power. If you can’t provide that find means to generate that.
No matter how big the stimulus is if it’s not reaching the common people like pds or direct deposit then it’s destined to fail.
So apply common sense, don’t repeat the methods which haven’t worked in the past. Though these two models are interconnected but in their own are mutually exclusive.
Tribhuvan Darbari- Loosening of financial conditions, adjustments in government spending and better coordination with States can spur a growth cycle. However, it is easier said than done. The path to revive the economy is hard and long full of ups and downs. Therefore, India will have to tread cautiously. A large stimulus is required to compensate for the short-run economic losses of the lockdown and to revive growth. Post COVID-19, relaxing financial conditions would be essential. There will be an opportunity to relax the financial conditions , especially as essential structural improvements are adequate and over-tightening created stress.
#TribhuvanDarbari #Tribhuvan #Darbari #Darbari_Tribhuvan #DarbariTribhuvan #Tribhuvan01 #Darbari01 #IndianEconomy #Economy #PostCOVID
Rajeswary hi
You have given a historical document of what mistakes were made in the past.
You have also admonished the PM saying he should not make the same mistakes.
How about methods to avoid mistakes given 1) Corona 2) obstinacy of Indian public.
If your ideas work will be great.
Rgds
AGopal
RBI Governor a toy in Govt hand so nothing to worry after distributing money to some Indians to show generosity to public. Indian voters are mesmerized in the name of religion and the party rules, si nothing to worry for govt and the governor post.
When will modi and the rbi learn not to make mistakes from their very own blunders,,, they will not and never as all know he is not one to listen to about his mistakes as he considers himself a proud horse,,, never learning and only accusing
When nothing seems to be working using common sense would alleviate financial stress across all sections of society.
India has two economic model one of which is cash based from cities to villages.
If you apply complex economic theory to this model and expect wonderful quick results then you have failed as an economist.
To drive growth for this cash based model you have to empower people with buying power. If you can’t provide that find means to generate that.
No matter how big the stimulus is if it’s not reaching the common people like pds or direct deposit then it’s destined to fail.
So apply common sense, don’t repeat the methods which haven’t worked in the past. Though these two models are interconnected but in their own are mutually exclusive.
Tribhuvan Darbari- Loosening of financial conditions, adjustments in government spending and better coordination with States can spur a growth cycle. However, it is easier said than done. The path to revive the economy is hard and long full of ups and downs. Therefore, India will have to tread cautiously. A large stimulus is required to compensate for the short-run economic losses of the lockdown and to revive growth. Post COVID-19, relaxing financial conditions would be essential. There will be an opportunity to relax the financial conditions , especially as essential structural improvements are adequate and over-tightening created stress.
#TribhuvanDarbari #Tribhuvan #Darbari #Darbari_Tribhuvan #DarbariTribhuvan #Tribhuvan01 #Darbari01 #IndianEconomy #Economy #PostCOVID
Rajeswary hi
You have given a historical document of what mistakes were made in the past.
You have also admonished the PM saying he should not make the same mistakes.
How about methods to avoid mistakes given 1) Corona 2) obstinacy of Indian public.
If your ideas work will be great.
Rgds
AGopal