1,721,162 research outputs found
Emerging contours of financial regulation: challenges and dynamics.
No full textThe current ongoing financial crisis is attributed to a variety of factors such as the developments in the subprime mortgage sector, excessive leverage, lax financial regulation and supervision, and global macroeconomic imbalances. At a fundamental level, however, the crisis also reflects the effects of long periods of excessively loose monetary policy in the major advanced economies during the early part of this decade. The theory and belief of efficient and rational markets have been severely discredited by the current crisis. There is, therefore, a growing agreement for much strengthened, and perhaps, intrusive regulation and supervision in the financial sector. Hitherto unregulated institutions, markets and instruments will now have to be brought under the regulatory framework. A more developed macroprudential approach will be important. Once the current financial crisis is beyond us, minimum regulatory capital requirements would need to be signifi cantly above existing Basel rules, with emphasis on Tier I capital, and supported by a maximum gross leverage ratio. Liquidity regulation and supervision must be recognised as of equal importance to capital regulation, reinforced by an effective global liquidity framework for managing liquidity in large, cross-border fi nancial institutions. The issue of remuneration in the fi nancial sector would require reforms on an industry-wide basis so that improved risk management and compensation practices by some systemically important firms are not undermined by the unsound practices of others. Whereas the suggested reform principles are being increasingly well accepted, many challenges will arise on their modes of implementation, and their practicality. For instance, once normalcy returns, the fi nancial industry will do its utmost to resist the requirements for higher capital at that time. From the point of view of emerging market economies (EMEs), the volatility in capital flows – mainly the outcome of extant monetary policy regimes in developed countries – has led to severe problems in both macro management and financial regulation. This will remain a challenge since there is little international discussion on this issue. Finally, as the global economy starts recovery, a calibrated exit from the prevalent unprecedented accommodative monetary policy will have to be ensured to avoid the recurrence of the financial crisis being experienced now.
Enhancing productivity, efficiency and international competitiveness of indian economy
No full textIndian economy has been recording impressive growth rates since 1991. This can be partly attributed to the multi-sector structural reforms aimed at enhancing productivity, efficiency and international competitiveness of the economy. The reforms have been undertaken gradually with mutual consent and wider debate amongst the participants and in a sequential pattern that is reinforcing to the overall economy. The financial markets have developed and are more integrated after the reforms, and regulatory and supervisory institutions have been set-up. The reforms, though slow paced initially but well synchronized, have begun to yield results. The economy has recorded consistently high growth rates, avoided any adverse impact from the South East Asian crises, built substantial foreign exchange reserves, pre-paid some of its external debt and restructured its domestic debt. An attempt is made in this paper to figure out the challenges and threats that lie ahead in Indian economy. The study also raises a number of questions that need further analysis to enable us to understand better the continuing and likely impact of the economic reforms in India.Indian Economy, Trends and Issues, Poverty, Agriculture, Economic Reforms
The Service Sector as India's Road to Economic Growth
No full textWhile India is distinctive among developing countries for its fast-growing service sector, sceptics have raised doubts about the quality and sustainability of this service-sector growth and its implications for economic development. We show, consistent with the views of the sceptics, that while growth of the sector has been unusually rapid, it started 15 years ago from unusually low levels. That the share of services has now simply converged to the international norm raises questions about whether it will continue growing rapidly. In particular, whether service-sector output and employment continue to grow in excess of international norms will depend on the continued expansion of modern services (business services, communication and banking) but, also, on the application of modern information technology to more traditional services (retail and wholesale trade, transport and storage, public administration and defense ). The second aspect obviously has more positive implications for output than for employment. We also show that the modern services that are growing most rapidly are now large enough where their future performance could have a significant macroeconomic impact. The expansion of modern service-sector employment is not simply disguised manufacturing activity. Finally, we show that the mix of skilled and unskilled labor in manufacturing and services is increasingly similar. It is no longer obvious therefore that manufacturing is the main destination for the vast majority of Indian labor moving into the modern sector and that modern services are a viable destination only for the highly-skilled few. We conclude that sustaining economic growth and raising living standards will require shifting labor into both manufacturing and services.
Central bank management of surplus liquidity
No full textFollowing a CCBS seminar in London, in February 2006, on the subject of central bank management of surplus liquidity, participants were invited to contribute to a collection of papers - case-studies of how a range of central banks around the world have tackled or are tackling the issues which arise from excess liquidity in the banking system. One of the aims was to produce something quite quickly. Much more remains to be said about the management of excess liquidity than is covered in this volume; but we hope that it will prove useful material to others who are addressing the same issues. Interested readers are also referred to the CCBS Lecture Series no. 3: “Surplus Liquidity: Implications for Central Banks”, by Joe Ganley.Central Bank,Management, Surplus, Liquidity
Reforms, Productivity, and Efficiency in Banking: The Indian Experience
No full textIndia embarked on a strategy of economic reforms in the wake of a serious balance-ofpayments crisis in 1991. A central plank of the reforms was reform in the financial sector and, with banks being the mainstay of financial intermediation, the banking sector. The objective of the banking sector reforms was to promote a diversified, efficient and competitive financial system with the ultimate objective of improving the allocative efficiency of resources through operational flexibility, improved financial viability and institutional strengthening. Beginning from 1992, Indian banks were gradually exposed to greater domestic and international competition. India’s approach to banking reforms has been somewhat different from many other countries. Whereas there has not been privatisation of public sector banks, through a process of partial disinvestment a number of public sector banks have been listed in Stock Exchanges and have become subject to market discipline and greater transparency in this manner. Besides, newly opened banks from the private sector and entry and expansion of several foreign banks resulted in greater competition. Consequent to these developments, there has been a consistent decline in the share of public sector banks in total assets of commercial banks and a declining trend of Herfindahl’s concentration index. Improvements in efficiency of the banking system were reflected in a number of indicators, such as, a gradual reduction in cost of intermediation (defined as the ratio of operating expense to total assets) in the post reform period across various bank groups (barring foreign banks), and decline in the non-performing loans. As a result of these changes, there has been an all-around productivity improvement in the Indian banking sector. While the cost income-ratio (i.e., the ratio of operating expenses to total income less interest expense) as well as net interest margin (i.e., the excess of interest income over interest expense, scaled by total bank assets) of Indian banks showed a declining trend during the post-reform period, the business per employee of Indian banks increased over three-fold in real terms exhibiting an annual compound growth rate of nearly 9 percent. At the same time, the profit per employee increased more than five-fold, implying a compound growth of around 17 percent. Branch productivity also recorded concomitant improvements. Such productivity improvements in the banking sector could be driven by two factors: technological improvements, which expands the range of production possibilities and a catching up effect, as peer pressure amongst banks compels them to raise productivity levels. As far as the future of Indian banking is concerned, a number of issues, such as the credit to small and medium enterprises, customers’ interests and financial inclusion, reducing procedural formalities, listing of the public sector banks in the stock exchange and related market discipline are of paramount importance.
Ciudad y trabajo
No full textWork, Wages and Welfare in a Developing Metropolis. Consequences of Growth in Bogotá, Colombia. Rakesh Mohan. World Bank, Washington, 1986, 403 págs., 4 apéndices
Ciudad y trabajo
No full textWork, Wages and Welfare in a Developing Metropolis. Consequences of Growth in Bogotá, Colombia. Rakesh Mohan. World Bank, Washington, 1986, 403 págs., 4 apéndices
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