{"id":51586,"date":"2020-03-05T12:10:52","date_gmt":"2020-03-05T17:10:52","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51586"},"modified":"2020-03-05T12:10:56","modified_gmt":"2020-03-05T17:10:56","slug":"indian-government-nationalizes-4th-largest-bank-as-shadow-banking-crisis-looms","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51586","title":{"rendered":"Indian Government Nationalizes 4th Largest Bank As Shadow Banking Crisis Looms"},"content":{"rendered":"\n

Indian Government Nationalizes 4th Largest Bank As Shadow Banking Crisis Looms<\/a><\/h3>\n\n\n\n

Two years ago we first noted <\/a>the building crisis in the Indian banking system, and now, as Bloomberg reports<\/a>, the Indian government has stepped in to organize a rescue plan for the nation\u2019s fourth largest private bank<\/strong> as a long-running crisis among shadow lenders threatened to spill over into the banking system.<\/p>\n\n\n\n

\u201cAfter 18 months of shadow banking crisis, the government did not want another major turmoil to hit the financial sector,\u201d<\/strong><\/em> said Ravikant Anand Bhat, a senior analyst at Indianivesh Securities Ltd.<\/p><\/blockquote>\n\n\n\n

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The government’s plan – to create a State Bank of India-led consortium to inject new capital into Yes Bank Ltd – would throw a lifeline to the embattled lender, which has been\u00a0struggling to raise capital to offset a surge in bad loans<\/strong>.<\/p>\n\n\n\n

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Moody\u2019s Investors Service cut the bank\u2019s credit ratings in December and in January said its \u201cstandalone viability is getting increasingly challenged by its slowness in raising new capital.\u201d<\/strong><\/em><\/p>\n\n\n\n

\u201cYes Bank is currently in the intensive care unit, and a State Bank capital injection will provide much needed oxygen,\u201d <\/strong><\/em>said Kranthi Bathini, a director at WealthMills Securities Ltd.<\/p><\/blockquote>\n\n\n\n

Additionally, the finance ministry imposes a limit of 50,000 rupees on withdrawals (around US$650) from accounts held in Yes Bank<\/strong>, according to a gazette notification.<\/p>\n\n\n\n

But the market does not seem reassured as India’s sovereign credit risk has recently spiked as virus fears and this banking system crisis comes to a head…<\/p>\n\n\n\n

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The RBI has superseded the board of Yes Bank for a period of 30 days \u201cowing to serious deterioration in the financial position of the Bank,\u201d<\/strong> the central bank says in a statement.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Indian Government Nationalizes 4th Largest Bank As Shadow Banking Crisis Looms Two years ago we first noted the building crisis in the Indian banking system, and now, as Bloomberg reports, the Indian government has stepped in to organize a rescue plan for the nation\u2019s fourth largest private bank as a long-running crisis among shadow lenders threatened to spill over […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[26510,6876,29163,4318],"class_list":["post-51586","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-nationalization","tag-shadow-banking","tag-yes-bank","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51586"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51586\/revisions"}],"predecessor-version":[{"id":51587,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51586\/revisions\/51587"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}