The Risk Aggregator Model in Banking for India
India has relied on banks to drive its financial inclusion efforts. However, the high levels of NPAs in banks’ balance sheets has forced them to cut back on lending, adversely affecting the financial inclusion agenda.
Differentiation in banking models is a must to drive competition
Several studies have found that the Indian banking sector, while having a large number of players, has monopolistic competition.
An alternative to privatization of public sector banks
The troubles of the banking sector, and public sector banks (PSBs) in particular, are well known.
Don’t reject structured finance
The term “originate to distribute” (OTD), though seldom heard in financial jargon, is increasingly gaining currency, especially in the financial systems of the West. The OTD model is a widely practised variation of traditional financial intermediation. In the traditional model, a financial intermediary (FI), often a bank, originates a loan and holds it on its […]
