Synopsis: Ignoring climate risks will complicate macroeconomic management, just as overlooking financial risks eventually led to the global financial crisis. Contents1 Introduction2 What is the issue with current policies of central banks towards combating climate change?3 What needs to be done?4 What is the way forward? Introduction Economic activity, is strongly integrated with emissions that… Continue reading Central banks must stop ignoring climate change
Tag: money and banking
Politics vs governance: on Urban Cooperative Banks
Synopsis: The Madhya Pradesh High Court’s decision to stay the Reserve Bank of India’s circular may delay the shift towards better governance in Urban Cooperative Banks (UCBs). Introduction The RBI had in June this year said that Members of Parliament, Assemblies, municipal corporations, municipalities, or other local bodies could not hold the corner-room post, or be a… Continue reading Politics vs governance: on Urban Cooperative Banks
El Salvador becomes first nation to adopt bitcoin as legal currency
What is the News? El Salvador has become the first country in the world to adopt Bitcoin as legal tender. This means businesses should accept payment in bitcoin alongside the U.S. dollar, which has been El Salvador’s official currency since 2001. Benefits of making Bitcoin as Legal Tender by El Salvador: Reduce the cost of… Continue reading El Salvador becomes first nation to adopt bitcoin as legal currency
Account Aggregators: new framework to access, share financial data
What is the News? State Bank of India, ICICI Bank, Axis Bank, IDFC First Bank, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank and Federal Bank have joined the Account Aggregator(AA) network that will enable customers to easily access and share their financial data. What is an Account Aggregator(AA)? Account Aggregator is a non-banking financial company… Continue reading Account Aggregators: new framework to access, share financial data
Our banks are mispricing capital and this is simply unsustainable
Source: This post is based on the article “Our banks are mispricing capital and this is simply unsustainable” published in Live Mint on 2nd September 2021. Syllabus: GS3- Indian Economy Relevance: Monetary policy and Economic stability Synopsis: Below-cost lending in India could have economic repercussions beyond the financial burden imposed on bank shareholders. Background We have a situation in India today where… Continue reading Our banks are mispricing capital and this is simply unsustainable
Gauging household income key for microfinance clients
Source: This post is based on the article “Gauging household income key for microfinance clients” published in The Hindu on 2nd September 2021. Syllabus: GS3– Mobilization of Resources, Growth, Development Relevance: Credit growth, Micro-Finance Synopsis: An accurate assessment of household-level incomes would avoid instances of over-indebtedness and ensure the long-term stability of the ecosystem. Contents1 Introduction2 What… Continue reading Gauging household income key for microfinance clients
Banks could end up beholden to online platforms with reach
Source: This post is based on the article “Banks could end up beholden to online platforms with reach” published in Livemint on 30th August 2021. Relevance: Disruption in the banking sector by tech giants. Synopsis: Deposit mobilization through Big Tech apps might weaken banks. Contents1 What has happened?2 Significance3 Implications4 Global examples5 The present scenario… Continue reading Banks could end up beholden to online platforms with reach
Adopting crypto assets as currency is a risky bet: IMF
Source: This post is based on the article “Adopting crypto assets as currency is a risky bet: IMF” published in Livemint on 31st August 2021. What is the news? The International Monetary Fund (IMF) has warned that adoption of crypto assets such as Bitcoin as national currency can impact a country’s macroeconomic stability. The warning came ahead… Continue reading Adopting crypto assets as currency is a risky bet: IMF
Time to bury Mudra ‘loan mela’ (On MUDRA loans)
Source: Business Standard Relevance: MUDRA loans, Loan mela Synopsis: Mudra loans have generated no jobs, resulting in misspending of trillions of taxpayers’ money. The loans were supposed to be for a three- to five-year period. The first cycle of the experiment is over, and the result has been disastrous. Contents1 Context2 Background3 Criticism of MUDRA 4… Continue reading Time to bury Mudra ‘loan mela’ (On MUDRA loans)
Finance Minister unveils 4th edition of Public Sector Bank Reforms Agenda – EASE 4.0
Source: PIB What is the News? The Union Minister of Finance and Corporate Affairs has unveiled the fourth edition of the Public Sector Bank (PSB) Reforms Agenda ‘EASE 4.0’ for 2021-22. About EASE: Enhanced Access and Service Excellence(EASE) is a common reform agenda for Public Sector Banks (PSBs). It is aimed at institutionalizing clean lending,… Continue reading Finance Minister unveils 4th edition of Public Sector Bank Reforms Agenda – EASE 4.0
