Asset Liability Subject : Economy Section: Monetary Policy Context: The recent developments in the US banking system drive home the importance of ensuring prudent asset liability management, robust risk management and sustainable growth in liabilities and assets in the banking sector, among others, according to Reserve Bank of India Governor Shaktikanta Das. Concept: […]
Is depositors’ money safe? Subject : Economy Section :Monetary policy Serious thought to insuring deposits was given by the RBI and the Centre after the failure of the Palai Central Bank Ltd. and the Laxmi Bank Ltd. in 1960. The Deposit Insurance Act, 1961 came into force on January 1, 1962. The preamble […]
‘SUPER DOMINANT’ Subject: Economy Section: Msc Context: Referring to the parameters for assessing dominance, the ASG argued that Google qualified to be “Super Dominant” instead of being a mere “dominant” undertaking Concept: Section 4 of the Competition Act prohibits abuse of the dominant position of an enterprise in the market. Dominant position means a position of strength, enjoyed by an […]
Too-Big-To-Fail banks Subject : Economy Section: Monetary Policy Concept : The failure of Silicon Valley Bank and Signature Bank in the US has raised questions about the safety of deposits. Such failures are unlikely in the Indian system. Also, RBI has classified SBI, ICICI Bank, and HDFC Bank as D-SIBs. Resilience of Indian […]
RBI has allowed banks of 18 other nations to trade in rupee Subject : Economy Section: External Sector Concept : Banks from 18 countries have been permitted by the Reserve Bank of India (RBI) to open Special Vostro Rupee Accounts (SVRAs) for settling payments in Indian rupees. Background: The process of SVRAs began […]
Environmental, Social, and Governance Subject: Economy Section: MSc Context: Over the last decade, regulators and corporations around the world have embraced the idea that businesses should be measured not just on traditional economic metrics such as shareholder return, but also by their environmental impact, commitment to social issues and the soundness of their […]
Silicon Valley Bank ‘contagion’ may leave India unscathed, say Finance Ministry Subject : Economy Section: External Sector Concept : As the fallout from the collapse of Silicon Valley Bank is starting to spread around the world, experts say the Indian banking system is unlikely to witness any major spillover effects. However, there will […]