The rating methodologies of the big three credit rating agencies—S&P, Moody’s, and Fitch—are scrutinised and evaluated. The factors driving sovereign ratings are examined using a regression...
Money, Banking and Finance
Retail investment into the Indian equity markets through direct as well as indirect channels picked up meaningfully during the pandemic, and continued thereafter. This led to Indian equities staying...
Analysing the contents of the Reserve Bank of India’s biannual FSRs and the methodology of the RBI’s supervisory stress tests reveals that there is scope for improvement, specifically regarding the...
An assessment of foreign bank ownership’s direct and indirect effects on market power, efficiency, and stability in Indian banking produces two main results. First, foreign banks have greater market...
The credit portfolio of domestic systemically important banks in India from 2009–10 to 2019–20 is examined through an industry-wise analysis. The industry-wise default risk and bank-wise recovery...
The Reserve Bank of India adopted inflation-targeting monetary policy based on the New Keynesian 3-equation model. How realistic are the assumptions, and how effective have monetary policy...
By firmly anchoring inflation expectations, monetary policy can prevent a wage-price spiral and moderate the second-round effects of supply shocks, thereby avoiding an inferior macroeconomic outcome...
It is argued that a key question of the operation of monetary policy is its decomposition into a price effect and an output effect. Specifically, the association between the easing of global monetary...
Post the pandemic, the world seems to be back on a high-inflation path, and many geographies in the advanced world have started witnessing inflation rates that were prevalent in the early 1970s...
Three broad aspects that have affected the financial inclusion space during the pandemic are examined in the paper. At the outset, the business of inclusive finance (growth, portfolio quality, and...
Significant additional risk containment measures such as the revision of market-wide position limits, increasing the margin requirements for both equity cash and derivatives, and flexing of price...
Private sector banks hold equity capital in excess of the regulatory requirement (400 basis points more from 2006 to 2017). The impact of excess capital in banks is examined through a partial...
The banking crisis that played out post 2008–09 is considered a key factor responsible for economic slowdown in India. Several alternative explanations for the banking crisis are presented in the...
During the COVID-19 pandemic, expansionary economic policies played an important role in reviving the floundering global economy. In this context, the present paper looks at the effectiveness of...
In response to a once-in-a-century pandemic in which a health crisis rapidly mutated into a macroeconomic and financial shock, the Reserve Bank of India mounted an unprecedented policy response...
