When American Banks fail, they seem to get liquidated and closed. It is not the case with Indian Banks. They are merged, and the dust is swept beneath-to carpets. Private Sector Banks get merged into Public Sector Banks, to convert Private Sector garbage into a Public Sector garbage. Sometimes, Smaller Private Sector Banks get merged into larger Private Sector Banks, with consequential 'bloating' of the Balance Sheet of the now Bigger Guy.
FACTS
In US there are 8000 banks. Three banks failed after 2004. According to Forbes, the three years between 2004 and is the longest BANK FAILURE FREE period since the depression of 1930.
BLOGGER'S VIEW
In India, whenever there is a Commercial Bank failure/sickness/incipient sickness, a merger takes place. Sweeping the dust to under the carpet!
If there is a Co-operative Bank failure, it will be the funeral of the depositors and the respective State Governments.
Incomplete. To complete by additions/deletions/modifications.
No comments:
Post a Comment