health of the indian banking system
after the fall of the US banks 6-7years ago,the US govt.instituted a stress test every year conducted by an independent body to determine the strength of the banks..we should a similar procedure with immediate effect..additionally,the banks should not be forced to lend which is what the government is now indulging in,to bring back the growth trajectory..this is highly risky,especially when the lending focus is tilted towards MSMEs.while they need financial assistance,there should be a measured approach..in this context,it should be mentioned that lending based on cash flow estimates will be the way ahead,which sbi is now implementing.
when a stress test is done and the results published on a yearly basis,the writers objective of customer doing a KYB will be automatically achieved.. more
We copy lot of habits/system from west. Sometimes, we forget to copy the good ones. GOI must implement the system of stress test to save banks & depositors. more
Corruption is the root cause ,all will be when 70 years old Corrupt practices some how reduced more
In India, under present environment, all measures will fail. In the latest failure of banks/nbfcs,
1. why had RBI not taken actions when it found crack on first occasion?
2. what were auditors doing?
3. what were independent directors on the board doing? more
Shri Suesh, your idea is good, but ours is a case of fence eating the field. If the committee members are to be appointed by people having vested interests, how effective will the stress test be ? more
When any borrower fails to comply with the repayments on borrowed funds and if it is more than a month or max two, confiscate assets mortgaged or hypothecated or take collateral asap. Call the guarantors to fund.the payments.. strictly implementation would curtail those perpetrators vicious thinking.to loot us. more