http://www.economist.com/node/21553039
This article discusses the reforms and public perception of reforms that India has undergone regarding its State Bank. Recently the Bank has been seen to be fairly aggressive and more politicized as an integral part in the sphere of the state. The author raises the question about the future direction of the State Bank. It has the potential to follow the Western model and become a private bank, but also has the potential to stay become state-led especially with support from similar banks in China. What direction do you see the bank going? What are future implications for this strategic decision?
4 comments:
After hearing about all the failure with state ran firms, I hope they pick to privatize their bank. We see that privatizing makes firms more efficient due to competition.
It is interesting to see that India is moving in this direction. I agree with Tim that they should choose to privatize as this will help the country and their bank system to run on a more efficient basis.
There are pros and cons of each option. The main issue with privatization is corruption and without the proper regulations in place, corruption could destroy the banking system and cause the entire country to fall back more than they moved forward.
I think that Christin makes a good point! Privatization would probably be the best way to go, however it does come with it's problems (corruption etc.). The success of the state bank really relies on the policies and enforcement of the state. It will be interesting to see how successful India can be! They are such a strong upcoming economy, growing very rapidly to be one of the most powerful countries in the world- should be interesting to watch them grow and expand and what impact that will have on the rest of the globe.
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