BUSINESS
25 years of LTCM collapse: No lessons learnt as US bank crises show
Even though LTCM failed 25 years ago, its ghost continues to linger and haunt financial policy. The lesson from LTCM's failure was that financial entities of all types and sizes could pose systemic risks
BUSINESS
Lessons for the RBI from the US review of its 2023 bank failures
Unlike the US which has a fragmented regulatory system, the RBI pretty much regulates most of the banks and financial institutions in India. However, we do not see similar transparency from the central bank
BUSINESS
MC Explains: The Great Indian Poverty Debate
A slew of recent research papers that offer opposing viewpoints has reignited the old debate --- has poverty in India diminished or increased? Moneycontrol examines the issue.
BUSINESS
Geoeconomics, geopolitics have worsened the economic outlook
The geoeconomic fragmentation in turn is leading to fragmentation in foreign direct investment and inward orientation. The geopolitical fragmentation is likely to affect the cross-border allocation of capital, international payment systems and asset prices
BUSINESS
2021-30: Lost decade for the world economy?
We are seeing almost halving of the growth rates from 6 percent levels in 2000-09 to 3.2 percent levels in 2020-24. The share of countries with slower growth than in the previous decade has increased to 73 percent in 2010-21 from 44 percent in 2000-10
BUSINESS
Explainer: The US Federal Reserve’s Bank Term Funding Program
The programme will make liquidity available to US depository institutions in the form of advances against certain types of securities as collateral.
BUSINESS
MC Explains| The unfolding crisis at Credit Suisse and its impact on financial markets
The impact on India’s financial markets may be muted because they are not as interlinked with global financial markets as those of some other countries. But there will be a negative shock, possibly leading to a further slowdown in economic growth.
COMPANIES-2
MC Explains | SVB implosion: Will the noxious fumes blow over India?
There will be some impact, even if muted. If financial markets in the West continue to decline and there is a recession, it will impact Indian financial markets as well and result in lower growth rates.
BUSINESS
From Mastercard to World Bank, Ajay Banga faces a similar set of challenges
Ajay Banga has been nominated to preside over the World Bank in trying times. Can he tilt the governance of the Bretton Woods institutions towards emerging and developing economies?
BUSINESS
IFSCA has its work cut out. Will it be an effective regulator?
The task of the International Financial Services Centre Authority is tougher, as it is a unified authority which is supposed to look at all markets whereas the other regulators were established to govern a specific segment of India’s financial markets
BUSINESS
Budget 2023-24: Government continues to heavily promote GIFT City and the returns are showing
Since 2018, GIFT City has featured prominently in every budget speech and received lavish investments. Broad trends suggest the government’s bets are beginning to pay off
BUSINESS
Past Economic Surveys put it best: Private investment is India’s best growth mantra
Despite the challenging global economy and next year’s general elections, Economic Survey must prod government to open up further
WORLD
MC Explains | Common Currency for Latin American: Neymar and Messi in the same team doesn’t always work
CELAC will have to engage in economic integration and achieve macroeconomic stability for a long time before thinking of a common currency.
BUSINESS
Recession worries seem to have replaced inflation concerns
A global slowdown will impact the Indian economy. But that impact will be limited compared to other countries as the Indian economy is driven by local consumption
WORLD
US hits debt ceiling: Here's what it means and way forward for the government
If the US Congress does not revise the debt ceiling and the time period lapses, the Treasury can manage the crisis and avoid default by using extraordinary measures.
WORLD
MC Explains | Pakistan's economy, which once outgrew India’s, now sinks. What went wrong?
While the recent shortages in Pakistan have made headlines, the country has been living in crisis for a long time. It has sought the help of the International Monetary Fund 23 times.
BUSINESS
Explainer: What is the Indian government’s green bonds programme?
Sovereign green bonds are issued by governments to raise resources to support climate-related or environmental projects. However, investors may need clarity on aspects such as interest rates, liquidity and trading.
BUSINESS
2023 unlikely to be just a boring year for central banks
Central banks will have to deal with multiple challenges in the new year and stay focussed on achieving their objectives
BUSINESS
States’ financial position needs to be watched as much as the Centre’s
While the aggregate financial position of states looks manageable, the finances of many individual states look weak
BUSINESS
Government, RBI caution on cryptocurrencies has served India well
While the exact number of cryptocurrency investors and the scale of investments in India is not clear, in all likelihood the Indian investor community has not faced the brunt of crypto meltdown as have the investors in other countries
BUSINESS
MC Explains | What is the RBI pilot programme for a retail digital rupee?
The RBI and commercial banks will form a closed user group comprising participating customers and merchants. The banks will distribute the digital rupee to the user group in the form of tokens in the same denominations that paper currency and coins are currently issued
BUSINESS
MC Explains | Indian municipalities and their finances
A recently released RBI report shows that nearly all the municipal corporations in India are struggling financially and highly dependent on support from state and central governments.
BUSINESS
Six years after demonetisation: Strengthen RBI governance
One of the top priorities of the government should be to ensure that the RBI’s central board functions at full strength, especially now, when central banks the world over face multiple challenges
BUSINESS
MC Explains | What’s the reason for recent gold rush among central banks
Central banks were net sellers of gold from 2002 to 2008 and have been net buyers since 2008
