Need for banking reforms

avnboyavn

avnboyavn

Avnish Mehra
Guys,
I really wanted to discuss this topic, after the 2008 global economy crash the most hit sector was the banking and finance sector. Alot of people lost their jobs , we also saw a lot major banks failing like lehman brother , merill lynch . Failures of these banks is another topic . What concerned me was the questions which were raised over the regulations of the whole industry like regulations of the SIVs , ABSs, CDOs ,CDS etc.
This also raised a huge question over the banking system as a whole. The banking has gone under tremendous change over the period of time after the abolishment of the glass-steagall act , banks grew aggressive actually they became more than aggressive over their investment strategies .Thus , what happened was global demise.

I would like to know what are your feelings over this matter, do you guys consider that their should be a new economic reform like bretton woods 3 or even re-enactment of the glass-steagall act .There has been recent talks over the introduction of Basel 3
Do you guys think any of these steps will resolve the problem . Please contribute.

Iam sorry I think I posted this topic in the wrong section first. My humble apologies but I wanted everyone's views over it.
Regards
 
hey thnx vivek for the like.......I would love if u like to share ypur views regarding this topic as well.........

regards
 
avnboyavn said:
Guys,
I really wanted to discuss this topic, after the 2008 global economy crash the most hit sector was the banking and finance sector. Alot of people lost their jobs , we also saw a lot major banks failing like lehman brother , merill lynch . Failures of these banks is another topic . What concerned me was the questions which were raised over the regulations of the whole industry like regulations of the SIVs , ABSs, CDOs ,CDS etc.
This also raised a huge question over the banking system as a whole. The banking has gone under tremendous change over the period of time after the abolishment of the glass-steagall act , banks grew aggressive actually they became more than aggressive over their investment strategies .Thus , what happened was global demise.

I would like to know what are your feelings over this matter, do you guys consider that their should be a new economic reform like bretton woods 3 or even re-enactment of the glass-steagall act .There has been recent talks over the introduction of Basel 3
Do you guys think any of these steps will resolve the problem . Please contribute.

Iam sorry I think I posted this topic in the wrong section first. My humble apologies but I wanted everyone's views over it.
Regards
Click to expand...

I agree that Banking sector needs some refinement.In India,Banking sector is regulated to an extent by the RBI and tht saved us from the global meltdown.Banks must focus on the inclusive growth and must have stringent credit measures before the loan is processed.Before the recession,I would say some banks have given loans to every Tom,Dick & Harry w/o following the laid-out process.Banks must also focus on the deposit growth which will keep the economic cycle under check.

-Deepak.
 
I agree on that of loan given to every tom dick and harry but the catch was the load was supposed to be secure against securities such as ABS (asset backed security) and the implicit assumption was the housing prices will never fall. The regulators the government no one felt that anything was wrong.

Today world over it is known fact that the Indian market is over regulated. I really wonder is over regulation to our question
Here in London, a recent report has suggested to split the universal banks but it seriously doesnt really clears hows it gonna help in the long run.
 
:SugarwareZ-146:

Ya, i don't think we need much banking reform. but we definitely need reforms in micro finance because this is going to be our future. It will help us a lot in overall finance industry.
 
@akash........brother you need to search the 100 marks projects forum I am sure some one must have submitted a report on banking reforms.
@mayuri........i agree micro finance is a under researched process but in order to finance the poor clients we need to have a sound system and properly crafted policies in the banking sector. And reforms should be made in order to strengthen the fundamentals of the system. last year in the US senate agriculture committee passed legislation to finally regulate and bring transparency to derivatives trades and, in particular, the credit default and currency swaps. One really wonder why does the agriculture committee regulates the derivative market.
This really comes down to the why do we need regulation so much.
 
Hey hi jigna.........U shud search the 100 marks projects forum ......i am sure u gonna find ur concerned project.......
It would be great if u have something to contribute towards this topic as well.......

Regards
Avnish
 
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