Financial Stability Report (FSR),
released yesterday (30 December
2013), makes for chilling reading. It
shows the extent to which the UPA
government (and, to a lesser extent,
the regimes before that), has allowed the banking system to be debauched, increasing systemic risks by encouraging crony capitalism. The real scary statement in the FSR, the first one put out after Raghuram Rajan became RBI Governor, is the one which points out that the failure
even one large company or a large
corporate group could danger the entire Indian banking system. (India Banking & Finance News, Unbelievable)
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