Banking Industry

One of the major beas of the economy that has received renewed snap in recent times has been the financial sector. And within the broad ambit of the financial sector, it is the banking sector that has been the cynosure of academia and policymakers alike. With concerns about financial stability emerge to the forefront of policy challenges facing central banks worldwide, it is being increasingly literalized that promoting healthy financial institutions, especially banks, is a polar prerequisite towards this end. Not surprisingly and then, the banking sector in most rising economies is passing through challenging yet exciting times and India is no exception to this rule. In the light of the importance of financial mediation and the difficulties that several countries have encountered in restructuring their fragile banking systems, it would be serviceable to examine the performance of the banking sector in India during the nineties. The rest of the paper proceeds as follows. Section I provides an overview of the situation in the pre-reform period. Section II examines the impact of the reforms process. The weaknesses in the banking system ar discussed in Section III. This is followed by a discussion of the appear challenges in the Indian banking system in Section IV.

The concluding remarks are gathered in Section V. Needless to say, banking sector is a crucial link in the reform process, but non the only one. Supporting reforms in the rest of the financial sector, real sector, including agriculture, trade and industrial policies along with macroeconomic control and supporting fiscal and external sector policies are as a lot important for successful reforms, as reforms in the financial sector themselves (Rangarajan, 1994). These are beyond the scope of the present paper are therefore sidestepped for the present. I. Banking and Finance in the Pre-Reform Period At independence, saving and investment in India were low and only two-thirds of the... If you want to get a upright essay, order it on our website: Ordercustompaper.com

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