NEW DELHI: Warning of "more bad news" on the stressed loans front in the Indian banking sector, eminent banker Uday Kotak has said its "weak underbelly" has resurfaced strongly and the story is not over yet, though lenders have begun cleaning up their books. Kotak also questioned whether nationalisation of banks served the purpose of checking disproportionate lending to big businesses, as most of the stress on their books is today due to loans to big corporates.
Submitted by David Stockman via Contra Corner blog, Blogger Ben’s work is already done. In his very first substantive post as a civilian he gave away all the secrets of the monetary temple. The Bernank actually refuted the case for modern central banking in one blog. In fact, he did it in one paragraph. This one.
This post The Banking Crisis That Can Never Be Contained… appeared first on Daily Reckoning.
When President Obama signed the Dodd-Frank Wall Street “reforms” into law in 2010, he promised they would “bring the shadowy deals that caused this [financial] crisis into the light of day.”
We were “sold” that Dodd-Frank would end Wall Street insiders’ reckless risk-taking that cratered the global economy in 2008.
Everyone who has followed this website since 2009 will know that we firmly believe that the "magic plumbing" of the modern financial system is not what is seen on the surface, in terms of declared "on the books" assets and liabilities, but what happens beneath it - in the shadow banking system, a place where trillions in liabilities are created and destroyed via the repo market, to provide short-term funding for all sorts of financial intermediaries, frequently with zero actual exposure in bank Ks and Qs due to regulatory loopholes that allow the "netting" of hundreds of billions of offsett
By Christopher Balding:While most commentators have chosen to focus on the nefarious sounding "shadow banking" industry, the real problem is that banks are illiquid after having moved so much of this off balance sheet.
MUMBAI: Reserve Bank today allowed state co-operative banks (StCBs) and district central co-operative banks (DCCBs) to offer internet banking with "view only" facility. At present, urban cooperative banks (UCBs) that meet certain criteria are permitted to provide internet banking with transactional facility to their customers with prior approval of the RBI. Besides, internet banking with "view only" facility is allowed to be given by all UCBs complying with certain conditions, without RBI's approval.