K.C. Chakrabarty
R RaviKumar :Chennai:BL:27 Aug 2012
The central bank today came down heavily on SBI Chairman, Pratip Chaudhuri’s statement on phasing out of CRR, saying either comply with or do business elsewhere.
Responding to a question on the sidelines of a financial conference on systemic risk, organised here by Great Lakes Institute of Management, the RBI Deputy Governor, K.C. Chakrabarty, said the banks must work within the framework prescribed by the regulator.
“If the SBI Chairman is not able to do the business in this regulatory environment, he has to find out some other place.”
The SBI Chairman recently said, “CRR doesn't help anybody. While CRR is not applied to insurance companies, NBFCs and mutual funds that are also mobilising deposits from the public, it is unfairly put on banks.
Using an analogy of a tree catching fire, which spreads across the forest, Chakrabarty said, “SBI is too big to fail”. If it is not protected, the risk may catch other banks leading to a systemic failure
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