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
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
Viewed by 1832
View all 27 comments Below 27 comments
To start with, all PSBs should be privatized. The private bank officials are accountable for any bad loan approval and the wrong doers are penalized quickly. There is need to improve credit culture in the country. The financial crimes should be treated at par with murder. The stress test of all banks should be done every 3rd year. more
Jul 04
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
Mar 12
Corruption is the root cause ,all will be when 70 years old Corrupt practices some how reduced more
Mar 11
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
Mar 10
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
Mar 10
