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Started by : Archana Singh, Relationship Executive, ICICI Bank   11 06 2009 14:07:00 +0000
Industry : Asset ManagementFunctional Area : Strategy Execution(Strategy & Execution)
Keywords : india credit market
Activity:  26 views;  last activity : 07 06 2010 20:18:09 +0000


The Credit market in India is not stable. With the effect of financial actions and crisis happening all over the world the credit market remains unstable. The RBI has adopted certain policy like raising the repo and the reverse rates, etc., during the first three quarters of 2008, but it didn't had an ‘inadvertent beneficial effect' on Indian credit market.

So how do you think to have the Credit Market stable. Share your views..

 
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1 2 3 4 5
1 Have a good Stimulus package
2 Invest in Safer Global markets
3 saving npa
4 Much effective Regulatory initiatives from RBI
5 A combination of all the above

Have a good Stimulus package

idea posted by Archana Singh Relationship Executive, ICICI Bank

In my view, there should be a stimulus package made by the govt to tackle the financial crisis happening globally. The main purpose of the package should be to prevent the re-emergence of the panic that gripped investors from investing in the credit market. It should aim at restoring trust in teh finance industry.

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Invest in Safer Global markets

idea posted by Veena Gupta Analyst, Blackstone Group

Investing  with various international organizations and standard setters to discuss them, and to act towards a focal point can help foster a more secure global economic and financial environment.

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saving npa

idea posted by Ravi Vazirani Business head, Solutions Unlimited

There still has be enormous amount of Npa which has not been tackled by the banks.

these have effected liquidity in the market and hence has also affected a economy . if even we speak of 3% npa of the economy that is sufficient to support self employment of more than 1000000 people .

The wrong decisions to over finance a business by a bank leads to several problems faced to the economy . absence of audit and corruption and bureaucracy has worsened it

stimulus package and waive of loans have benefited the rich and not the needy

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Much effective Regulatory initiatives from RBI

idea posted by Esha Johar Risk Analyst, Irevna

RBI had strong incentives to meet a constant and, indeed, increasing demand for securitized products of some form or another. There was little incentive to originate good loans or monitor the borrowers' creditworthiness. I think This should be checked and solved from RBI.

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A combination of all the above

idea posted by Srikumar Aduri Consultant, Capgemini
Have a good Stimulus package, Invest in Safer Global markets, saving npa and Much effective Regulatory initiatives from RBI are all  needed to credit markets stable. NPA will rise if the growth is healthy, which can be answered through a proper stimulus package.  Invest in safer global markets is prudent to secure at-least return of investments. RBI is doing and did a great job in its oversight as a chief regulator. Howeverr when there is crissi environment and if the government is pushing growth through stimuli, there is every opportunity for mis-management. RBI can prevent such things from happening.
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