Tuesday, October 07, 2008

Indian Banks are not affected by Credit Crisis..!

Yes Indian banks are not affected by global Credit Crisis but you should know -- Indian Bank Accounts - Are your deposits insured?

Indian financial sector will be largely unaffected in any direct manner on account of deteriorating global markets.

Remember 60s/70s during Indian banking crisis, India goverment nationalized banks. Today that's happening in developed world. Ofcourse I don't think nationalizing assets will solve all problems but I do believe free market cannot regulate itself with third-public-eye. 

Also Thanks to (ReserveBank of India)RBI's stringent regulatory requirements that require banks in India to maintain a cash reserve ratio of 9%, a statutory liquidity ratio of 25% and a capital adequacy ratio of 9% - measures to ensure a bank is not highly leveraged and is adequately capitalised.

Banks in Indian often complain that the regulatory cost of doing business in India is one of the highest anywhere in the world but given the unravelling of the credit crisis, they will have the central bank to thank for India being relatively unscathed.

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