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Quest for Restoring Financial Stability in India

Quest for Restoring Financial Stability in India

  • Viral Acharya - C.V. Starr Professor of Economics in the Department of Finance at New York University Stern School of Business (NYU-Stern)
Critical Acclaim

July 2020 | 396 pages | SAGE Response
Beyond the headline-grabbing issues, the Indian economy is struggling to solve a critical problem: How to restore and maintain financial stability on a durable basis. In this book titled, Quest for Restoring Financial Stability in India, Former Deputy Governor of RBI, Dr. Viral V. Acharya, talks about his quest for restoring financial stability in India and offers a concrete plan for sustained improvement. Dr Acharya shares a feasible plan to address the recapitalization needs of public sector banks, offering solutions on how to improve credit allocation by credit intermediaries and establish viable and efficient capital markets. Elucidating the need-of-the-hour reforms, this book also raises several stark and unanswered questions related to the re-emergence of fiscal dominance in India, not just of monetary policy tools but also of banking regulations. It makes a persuasive case for striking the right balance between the government, centralbank, private sector and markets, in order to improve long-run growth prospects for the real economy. 
Foreword by Dr Y. V. Reddy, Former Governor, Reserve Bank of India
Preface: Fiscal Dominance—A Theory of Everything in India
PART I Resolving Non-Performing Assets (NPAs) and Recapitalizing Banks
Some Ways to Decisively Resolve Bank Stressed Assets
A Bank Should Be Something One Can ‘Bank’ Upon
The Unfinished Agenda: Restoring Public Sector Bank Health in India
Prompt Corrective Action: An Essential Element of Financial Stability Framework
PART II Creating a Public Credit Registry
A Case for Public Credit Registry in India
Public Credit Registry (PCR) and Goods and Services Tax Network (GSTN): Giant Strides to Democratize and Formalize Credit in India
Some Reflections on Microcredit and How a Public Credit Registry Can Strengthen It
What Can India’s Banking System Learn from Shampoo Sachet Revolution?
PART III Incorporating the Financial Cycle in the Monetary Policy Framework
Monetary Policy under Changing Financial and Macroeconomic Environment
Managing the Financial Cycles in EMEs: A Central Banker’s Perspective
PART IV Improving Monetary Policy Transmission
Monetary Transmission in India: Why Is It Important and Why Hasn’t It Worked Well?
Improving Monetary Transmission through the Banking Channel - The Case for External Benchmarks in Bank Loans
PART V Developing Viable Capital Markets and Ensuring External Sector Resilience
Understanding and Managing Interest Rate Risk at Banks
Global Spillovers: Managing Capital Flows and Forex Reserves
Development of Viable Capital Markets: The Indian Experience
PART VI Striking the Right Balance: Enhancing the Autonomy of the Central Bank, the Markets and the Real Economy
On the Importance of Independent Regulatory Institutions: The Case of the Central Bank
Why Less Can Be More: On the Crowding- Out Effects of Government Financing

“The author’s commitment and passion come through this entire erudite intellectual discourse… there is no doubt that the book has brought some of the core issues involved in the relationship between the Central Bank and the government into sharp focus.” 

The Book Review, September 2020

“This book is worth a read—by students, practitioners, commentators, Mint Street and New Delhi. Including, and perhaps especially, if you are likely to disagree with some of the arguments and would like to further the debate.”

Financial Express, 30 August 2020

“Many concepts of banking, its effects and efforts are explained in a simple and engaging manner in this book, which is a library must-have.”

The Free Press Journal, 28 February 2021

Viral Acharya

Viral V. Acharya is the C. V. Starr Professor of Economics in the Department of Finance at New York University Stern School of Business (NYU Stern). He was the Deputy Governor of the Reserve Bank of India (RBI) from 23 January 2017 to 23 July 2019, in charge of monetary policy, financial markets, financial stability and research. Dr Acharya has been the Director of the National Stock Exchange of India and the NYU Stern Initiative on the Study of Indian Capital Markets, and a member of the Economic Advisory Committee of the Financial Industry Regulation Authority (FINRA), International Advisory Board of the Securities Exchange Board of... More About Author

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ISBN: 9789353884895