Banking system faces liquidity crunch: Fin Min Srcs
Published on Mon, Oct 06, 2008 at 10:37 | Source : CNBC-TV18
Updated at Mon, Oct 06, 2008 at 20:22
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Banking system faces liquidity crunch: Fin Min Srcs
Sources in the finance ministry admitted liquidity in the banking system is tight, said CNBC-TV18 quoting Newswire 18. There may be some steps from the Reserve Bank of India to ease liquidity, according to the source.
A source in the Finance Ministry admitted to liquidity in the banking system being tight, reports CNBC-TV18 quoting NewsWire 18. There may be some steps from the Reserve Bank of India to ease liquidity, the source said. The RBI, has all the tools to tackle the issue of liquidity crunch, the source added.
Meanwhile, V Leeladhar, Deputy Governor, Reserve Bank of India, or RBI, said that the risk-management system of private-sector banks is comparetively okay, reports CNBC-TV18, quoting Agencies.
Leeladhar said that private banks with an overseas presence will be somewhat affected though.
Earlier, the Finance Minister had given an indication that he didn't see any rate hike in the near future. In fact, there were indications that a CRR and SLR hike could also be on the anvil, or at least a status quo on both. The Finance Minister had also indicated a more aggressive intervention by the Reserve Bank of India to manage the continuously falling rupee and prevent volatility.
