This is an old article going back to 2000. It is a comment on the recommendations of the Committee on Deposit Insurance in India (Chairman: Jagdish Capoor, 2000). Continue reading “Reforming Deposit Insurance”
Category: Central Banking
Posts related to central banking
Lessons from the HSBC case
In 2012, noncompliance with Anti-Money Laundering regulation resulted in penalties being imposed on HSBC to the extent of USD 1.9 billion. This article, written jointly with Prof. L. Prakash Sai of IIT Madras, Continue reading “Lessons from the HSBC case”
Narrow Banking: Is it an option for weak banks?
This is a dated piece going back to 1998. Narrow banks or safe banks are those whose assets are required to be invested only in safe and liquid government bonds. This was proposed as an option for weak banks in India by the Committee on Capital Account Convertibility, chaired by S.S. Tarapore, former Deputy Governor of the Reserve Bank of India, in the year 1997. My comment on this recommendation was published in the Op-Ed page of Economic Times dated 24 April 1998. In view of the general nature of discussion having relevance for policy makers across the world, its continuing relevance, and the fact that it is not available in soft copy form even on the website of the Economic Times, it is reproduced here. Continue reading “Narrow Banking: Is it an option for weak banks?”
Separating Banking Supervision
In this article, published in 1998, I argued that there is no evidence to suggest that separation of banking supervision from central banks will enhance the effectiveness of either supervision or monetary policy. On the contrary, it could be detrimental to both. The article was published in the Op-Ed page of Economic Times dated 5 October 1998. Continue reading “Separating Banking Supervision”
Lion and Palm Tree: The Title
The title, lion and palm tree, is based on the design used by the East India Company for its single and double mohur coins. The Company issued coins in gold, silver, copper, and even tin. The gold coins were known as mohurs and were not legal tender. These were issued in one-mohur and two-mohur denominations valued at Rs. 15 and Rs. 30 respectively. The relevant Act of 1835 also authorised issue of 1/3rd and 2/3rd mohurs of value Rs. 5 and 10 respectively, though I am not sure whether these were actually issued. These single and double mohur coins, first issued in 1835, had the image of King William IIII on the observe and the design of lion and palm tree on the reverse. Continue reading “Lion and Palm Tree: The Title”