Media Type

Keynote Address

Publication Date

12-18-2019

Description

Corporate Governance for the banking sector should be viewed in the overall context of the Governance structure of a country. Therefore, to expect that ‘one shoe fits all’ model for all the South Asian Countries would be unrealistic. In countries where capital markets are edging out banking or non-banking financial institutions such as Microfinance banks are nibbling away the market share the standards and norms applicable to banks should be equally applied to other financial sector players. To stringent standards for the banks and too lax for shadow banking have brought grief in the past and would remain a recipe for disaster for the health of financial system in the future. The recent example of default by a financing firm Infrastructure Leasing and Financial Services (IL&FS) in India had a ripple effect on the behavior of the whole financial sector .Strong recourse to Risk aversion led to a credit squeeze, freeze in some cases which in turn, has slowed down Indian economy recording one of the lowest growth rates in the recent history of India.

Notes

Key note address delivered at the SAARC Finance seminar on Emerging trends in Corporate governance held at Islamabad on December 18, 2019.

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