BUSINESS
CBDC | The economic Nobel Prize could not have come at a better time for banking
The intersection of ideas between the Nobel Prize and the RBI concept note cannot just help understand today’s banking challenges, but also be in reckoning for future Nobel prizes as well
INDIA
MC Explains | Why Ben Bernanke's economics Nobel for bank crisis work is creating a storm
Although the Nobel committee says the research reveals how regulating banks and propping up failing lenders with taxpayer money can avert a financial and banking crisis, critics point out one of winners Ben Bernanke was a major contributor himself to the 2008 global financial crisis as the US Federal Reserve chief.
BUSINESS
MC Explains| Should RBI establish a forex swap line with Federal Reserve?
The rupee has been under depreciating pressure against the dollar for nearly 6 months now, contributing to the depletion of India’s foreign currency reserves. One way out could be a temporary swap line with the Federal Reserve.
WORLD
UK crisis: Drawing parallels with the pound's collapse 30 years ago when George Soros made a killing
The current exchange rate crisis has put the UK and Europe in the spotlight, as it did in 1992 when investors and speculators had run on the British unit, costing 3.5 billion pounds. But this time, the government is not intervening to stem the currency's fall.
BUSINESS
MC Explains: What the RBI can do to rein in rupee’s depreciation
If the RBI wants to counter rupee depreciation, it should continue to improve macroeconomic fundamentals and take measures to increase capital flows into the country
BUSINESS
Banking | History can help while banning digital lending apps
Just like it happened in the past, we are back to times when we are seeing the mushrooming of entities and apps offering lending (and forex facilities)
BUSINESS
Digital Lending | RBI must crystallise its guidelines towards a digital banking regulation Act
The new Act should bring all the entities on a common platform, and analyse how the different entities engage in digital banking and digital banking products
BUSINESS
Jackson Hole | US Fed reiterates its focus on price stability
Jerome Powell’s comment on the three policy lessons from the past means that the US Fed will have to continue to keep interest rates high to fight inflation
BUSINESS
Privatisation of India’s public sector banks is like Waiting for Godot
The government needs to decide and act on PSB privatisation, which has been pending for a while now. If it does not want to privatise, it should make its stand clear
BUSINESS
MC Explains | Why China is facing an economic crisis and how India can gain
There are fears of a meltdown of the Chinese economy and its banking system as the stringent Covid-19 lockdowns in key manufacturing hubs have led to a slowdown of the economy. The Chinese crisis provides an opportunity for India to project itself as a global manufacturing hub.
BUSINESS
The US Inflation Reduction Act: more politics than economics
The country has a history of such initiatives going awry. They have not worked in the past, and inflation has continued unabated
BUSINESS
Green is the new colour of Indian Banking
While Indian banks are aware of the risks they face because of climate change, they are not prepared for the same
INDIA
USD vs INR | India’s macroeconomic fundamentals are strong
An appreciating US Dollar has given most global currencies a beating. The Indian Rupee is still standing
BUSINESS
MC Explains | Has the relationship between inflation differentials and exchange rate movement broken down?
We are at a rare moment in economic history when the inflation rate in developed economies is higher than the inflation in developing economies such as India. Yet, the rupee continues to depreciate against the US dollar. Moneycontrol explains the trend
BUSINESS
Explainer: Should RBI opt for a multi-tier excess reserve system?
This explainer will help you understand the surplus liquidity situation in the markets and whether a multi-tier excess reserve system can help address the problem.
BUSINESS
MC Explains | India does not face an external debt crisis
India’s Debt Service Ratio, a measure of a country’s ability to service debt given current receipts, has declined from around 40% in the 1990s to around 5% today.
BUSINESS
RBI takes a major step towards internationalising rupee
The policy does not imply that we will see an immediate transition from USD to INR-based invoicing. It will at best be a gradual process. Policymakers can start by encouraging INR payments with neighbouring South Asian countries and other trade partners
BUSINESS
MC Explains | Will steps to liberalise forex inflows help the rupee?
The outflow of funds leads to higher demand for the dollar and thereby, local currency depreciation. While a depreciating currency helps a country’s exports, it makes imports more expensive and feeds inflation
BUSINESS
How real is the risk of stagflation in India?
Even if we escape stagflation this time around, there is still a risk of facing high inflation and subdued growth as has been the case for most part of India’s macroeconomic history
BUSINESS
Banking | Creative destruction of existing models will pose new challenges for regulators
The core function of banking will remain, but the way we understand a bank in terms of branches and bank officers, is going to change forever
BUSINESS
Explained | Why Japan’s inflation problems are of a different kind
Japan's inflation has remained low as economic activity has remained persistently weak.
BUSINESS
Payments | UPI takes the credit
UPI is increasingly becoming a super payment interface, shaking the payment ecosystem which was controlled by private banks and the payment duopolies
WORLD
Explainer | Sri Lanka and Pakistan crisis: What can India do?
Much of the South Asian region is facing a crisis, making India’s role in the region even more prominent
BUSINESS
Entry barriers for banking licence in India are high… very high
It is also not clear what it takes to get a bank licence in India. In the recent list of rejections, not much is said about why the applications are rejected
