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Started by : Vijay Kumar, Actuary Manager, LIC   12 07 2009 10:20:07 +0000
Industry : BankingFunctional Area : Strategy Execution(Strategy & Execution)
Activity:  20 views;  last activity : 07 06 2010 20:18:09 +0000

As the global financial crisis looks to impact economies worldwide, the role of international financial institutions to ensure regulation and early warning has to made. On the other hand, Indian banks are well capitalised and regulated even as their direct exposure to problem assets that precipitated the crisis has been minimal. In respect to the economic rehabilation, what should be the role of International Financial Institutions?

 
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1 2 3
1 Strengthen the role of intermediary
2 A Stimulas measure ensuring economic recovery and growth
3 Reactive the weaker economies

Strengthen the role of intermediary

idea posted by Vijay Kumar Actuary Manager, LIC

The financial institutions' role as an intermediary is clearest in the credit and deposit business. The usual function involves clients bringing to the bank their savings, or money which the bank transfers to its credit clients in the form of loans. As in International level also, it should ensure the finance business along with the developing countries in global terms and is necessary that the key investments and institutional changes be part of the recovery and reconstruction program from its inception.

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A Stimulas measure ensuring economic recovery and growth

idea posted by Jyoti Rath Sr. Associate, Barclays

In my opinion, at a key stage of economic recovery, and these institutions, should strengthen their coordination of economic policy. They should discuss, with the world leaders, the current situation of the world economy, as well as their governments' fiscal and monetary policy responses. More efforts to maintain world trade growth and sustainable economic growth, and look forward to strengthening the role of the new emerging countries in the international financial institutions.

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Reactive the weaker economies

idea posted by Swati Raut Product Manager, Aviva

I believe, a role of the World Bank in the global economy is to address pressing issues such as weak financial sectors, lack of transparency and poor governance in the corporate sectors, and weaknesses in external liability management will help restore confidence among foreign and domestic investors. In this way, the World Bank can act to reactivate poor economies and thus to protect and extend social and economic achievements. In poorer countries, the World Bank can appears to operate in coordination with the government as it steps in and fills the income-security gap that is left by companies closing and workers losing their jobs. Over the longer term, the World Bank will be working with countries to help them design a world which is shock-free from global crisis.

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