ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Changing Financial Wind

For the last two years the Reserve Bank has enjoyed a congenial financial environment which has enabled it to manage the liquidity situation smoothly and successfully soften interest rates. However, there are now subtle signs of a change in the financial market.

Funding Urban Infrastructure: From Government to Markets

This paper argues for a role for newer financial instruments like 'municipal-bonds' for financing urban infrastructure. The paper also argues that for these initiatives to be successful, a thick and efficient secondary market in this segment of the debt market is crucial. It will impart liquidity and create an incentive for individual agents to invest in the muni-bonds.

RBI Intervention in the Forex Market

The use of a binary dependent variable framework for estimating the impact of daily forex market interventions by central banks is well known in developed countries. However, there are practically no such studies for developing countries, including India. This paper attempts to model the patterns and consequences of RBI's daily intervention in the forex market in a simple binary dependent variable framework

Cautious, but Flexible

The RBI's latest monetary policy measures fall neatly into the policy framework pursued for the last five years with the objectives of maintaining a stable financial environment and strengthening the financial system and improving the transmission of monetary policy signals.

India's Foreign Exchange Reserves

The questions addressed in this paper are: What are forex reserves? Why hold forex reserves and how did the policy evolve? What is the appropriate level of reserves? How does the current status appear in terms of indicators of adequacy of reserves? The author also focuses on several aspects of forex management such as the implications for quasi-fiscal deficit and communication policy of the RBI. The issues in regard to policy and management of forex reserves in India are posed in some detail. The concluding part contains some random thoughts from a futuristic perspective.

Issues in Asset Liability Management - VII

Market determination of interest rates often leads to volatility which has particular relevance to management of the interest rate risk in general and management of fixed income portfolios in particular. Given the size of bank portfolios, volatility of interest rates and need for rigorous performance evaluation, appropriate management accounting systems are essential.

Banking: Missing Dynamism

Even as banks have come to possess a growing share of the community's financial resources, it is the absence of dynamism shown by them in expanding their credit base regionally, functionally and by the size of borrowers that continues to hurt the process of domestic investment and growth. It is necessary for them in a competitive environment to introduce more dynamic instruments of lending and enhance organisational capabilities to shoulder more nuanced lending practices, both of which are missing in the current banking scenario.

Revitalising Growth: Idiom and Message

The main reason why the RBI's latest Report on Currency and Finance has caught public attention is the policy implication of the research presented in it. But while it is understandable that the initial responses are focused on the policy aspects, the analytical aspects of the report too deserve a careful look.

Issues in Asset Liability Management - I

The subject of asset liability management is of relatively recent origin both internationally and, more so, in India. This is the first of a series of articles which will discuss the different issues involved, critically examine the maturity gap model, suggest alternatives, look at the principles of pricing deposits and advances and deal with connected subjects.

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