global economy, which has plunged into a severe contraction, will shrink by 5.2 per cent this year due to the massive shock of the coronavirus pandemic and the shutdown measures to contain it, the World Bank said on Monday. The COVID-19 recession is the first since 1870 to be triggered solely by a pandemic, World Bank President David Malpass said in his foreword to the latest edition of the Global Economic Prospect report released on Monday. "The speed and depth with which it has struck, suggests the possibility of a sluggish recovery that may require policymakers to consider additional interventions," he said. For many emerging markets and developing countries, however, effective financial support and mitigation measures are particularly hard to achieve because a substantial share of employment is in informal sectors, the president of the Washington-based multilateral lender said. According to the report, economic activity among advanced economies is anticipated to shrink by seven per … [Read more...] about Global economy to plunge into worst recession since WW-II: World Bank
World bank hiring process
Bank credit growth will hit a multi-decade low of 0-1% this fiscal, which will be nearly 800 basis points lower than the 8-9% growth expected before the pandemic-triggered lockdown, CRISIL Ratings said on Monday.The forecast presumes a base case scenario of gross domestic product contracting 5% this fiscal.“This crisis is unprecedented and so will its economic fallout be – such as lower capex demand as well as lower discretionary spends, to name some – which will slow down credit offtake significantly across segments in the current fiscal,” said Krishnan Sitaraman, senior director, CRISIL Ratings. “Given the expected economic contraction — the first time in four decades — the banking sector is expected to witness one of its slowest years.”The corporate loan portfolio, which constitutes almost half of total credit, is expected to be the worst-hit, due to disruption in capacity utilisation, it said.Retail lending, which is about a fourth of … [Read more...] about Bank credit growth may plunge to 0-1% in FY21: CRISIL Ratings
The High Court Judge listened to legal counsel for the Bank of England defend their decision to prevent Venezuela access to their own gold reserves because they have accepted the British Government decision of last year to recognise a US appointed opposition member of the Venezuelan National Assembly, Juan Guaido, who didn’t even stand in the Presidential election of 2018 and has never stood in a Presidential election as the legitimate President of Venezuela. It is a ridiculous and unbelievable situation more befitting a poor B-Movie script than real life politics. … [Read more...] about High Court Ignores Justice – Bank of England Theft From Venezuela Upheld
Deposits are at riskAccording to the Financial Stability Board (FSB) Peer Review Report August 2016, 63% of the financial investments ordinary Indians make are within the banking system; PSBs account for 63% of the market share while private banks control 18%. Given the shaky financial condition of most public banks, deposits in these banks are very much at risk. In the best case scenario, there could be a government bailout. Other possibilities are the transfer of their assets and liabilities to a bridge service provider, a merger with an existing bank, or even liquidation. But none of these options guarantees safety of customer money. … [Read more...] about Banking on legislation
SBI and a clutch of other private sector banks bailed out Yes Bank early in 2020 after the government and RBI had jointly formulated a Yes Bank reconstruction scheme. Yes Bank failed on account of alleged financial irregularities perpetrated by the founder and former CEO Rana Kapoor and a massive spike in bad loans. As a part of the bail-out, the RBI appointed former SBI executive Prashant Kumar as administrator of the bank, who took charge as CEO later. … [Read more...] about After Yes Bank fiasco, RBI governor sees merit in creating resolution corporation: How critical is the idea?