I return to a theme I have flagged several times in the past. Banking in the west is in the doldrums. How do we revive it? One of the most thorough expositions comes from former RBI governor YV Reddy. For those who came in late, Reddy is widely recognised for his contribution in inulating the Indian banking sector from the financial crisis. He was profiled in the New York Times, perhaps a first for a central banker from India. His views are heard with respect in international banking circles.
Reddy outlines his views on the present problems in banking in his Per Jacobsson lecture delivered in Basel. We need a multi-pronged approach, he says, that covers regulation, the size of the financial sector in the economy, global governance and the ownership structure in banking.
I covered the lecture in my ET column, How do we restore trust in banks?