Monetary Policy of Reserve Bank of India: Role of Bank Lending

2015 ◽  
Vol 4 (3) ◽  
pp. 33 ◽  
Author(s):  
Subhalakshmi Sircar ◽  
Sandeep Goel
Keyword(s):  
Monetary Policy ◽  
Bank Lending ◽  
Reserve Bank ◽  
Reserve Bank Of India

scholarly journals Analysing Monetary Policy Statements of the Reserve Bank of India

2019 ◽  
Author(s):  
Aakriti Mathur ◽  
Rajeswari Sengupta
Keyword(s):  
Monetary Policy ◽  
Reserve Bank ◽  
Policy Statements ◽  
Reserve Bank Of India

Critical Analysis of the Role of the Reserve Bank of India in Managing Liquidity in the Interbank Market amidst Financial Stress

2016 ◽  
Vol 5 (3) ◽  
pp. 33-45
Author(s):  
Rituparna Das
Keyword(s):  
Critical Analysis ◽  
Banking Industry ◽  
Economic Downturn ◽  
Interbank Market ◽  
Liquidity Management ◽  
Management Procedure ◽  
Reserve Bank ◽  
Loan Defaults ◽  
Reserve Bank Of India

During the period 2011-12 of economic downturn characterized typically by economy wide loan defaults many banks in India are reported to have posted adequate levels of capital but experienced difficulties due to unsound liquidity management. In an attempt to examine the ease of liquidity management procedure of the Indian banking industry, this paper critically examines whether the central bank of the country facilitates liquidity management of the banks during the stress periods. The finding is that it does not.

Do foreign banks in India respond to global monetary policy shocks? A SVAR analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ameen Omar Shareef ◽  
K.P. Prabheesh
Keyword(s):  
Monetary Policy ◽  
Bank Lending ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Monetary Policy Shocks ◽  
Content Type ◽  
Indian Economy ◽  
Policy Shocks ◽  
The Impact

Purpose This paper aims to examine the role of foreign banks in transmitting global monetary policy shocks to India. Further, the authors try to explore the international bank lending channel and analyze the impact of global monetary policy on Indian macroeconomic variables. Design/methodology/approach The authors use a structural break unit root test and structural vector autoregression on monthly data from 1998 to 2018. Findings The study finds that the global monetary policy is significantly determining foreign banks’ lending in India; the evidence of a portfolio re-balancing channel in the process of global monetary policy transmission to the Indian economy; the exchange rate is significantly explaining the foreign bank credit dynamism in India; and evidence of international monetary policy spillover to the Indian economy. Originality/value This is the first attempt to analyze the role of foreign banks in the transmission of global monetary policy shocks to India, where the literature availability is limited. The finding of ineffective domestic monetary policy on foreign bank lending opens the need for an in-depth and diversified analysis of the role of foreign banks in the transmission of domestic monetary policy.

scholarly journals Evaluation of the Inflation Forecasting Process of the Reserve Bank of India: A Text Analysis Approach

2020 ◽  
Author(s):  
Amrendra Pandey ◽  
Jagadish Shettigar ◽  
Amarnath Bose
Keyword(s):  
Monetary Policy ◽  
Policy Framework ◽  
Quantitative Methodology ◽  
Inflation Forecasts ◽  
Inflation Forecasting ◽  
Monetary Policy Committee ◽  
Reserve Bank ◽  
Policy Statements ◽  
Economic Reality ◽  
Reserve Bank Of India

<div><div><div><p>This study is an attempt to evaluate and interpret the monetary policy statements (MPS) of the Reserve Bank of India (RBI) for the five year period since it started conducting monetary policy meetings every alter- nate month. An important contribution of this paper is the evaluation of the inflation forecasting path of the RBI using information from the state- ments. Both qualitative and quantitative methodology has been adopted to study and evaluate the MPS. It helps in understanding processes fol- lowed and information considered while making inflation forecasts. The results clearly indicate that though the RBI examined the high frequency economic indicators in their process of assessment and inflation forecast- ing, their inflation forecasts have been below the mark. Similarly, the monetary policy committee (MPC) could not predict the sharp disinfla- tion following demonetization on 8th November, 2016 resulting in higher real interest rate regime. This shows that the monetary policy governance under the new monetary policy framework of the RBI needs to be revisited to align it with the economic reality of India.</p></div></div></div>

scholarly journals Evaluation of the Inflation Forecasting Process of the Reserve Bank of India: A Text Analysis Approach

2020 ◽  
Author(s):  
Amrendra Pandey ◽  
Jagadish Shettigar ◽  
Amarnath Bose
Keyword(s):  
Monetary Policy ◽  
Policy Framework ◽  
Quantitative Methodology ◽  
Inflation Forecasts ◽  
Inflation Forecasting ◽  
Monetary Policy Committee ◽  
Reserve Bank ◽  
Policy Statements ◽  
Economic Reality ◽  
Reserve Bank Of India

<div><div><div><p>This study is an attempt to evaluate and interpret the monetary policy statements (MPS) of the Reserve Bank of India (RBI) for the five year period since it started conducting monetary policy meetings every alter- nate month. An important contribution of this paper is the evaluation of the inflation forecasting path of the RBI using information from the state- ments. Both qualitative and quantitative methodology has been adopted to study and evaluate the MPS. It helps in understanding processes fol- lowed and information considered while making inflation forecasts. The results clearly indicate that though the RBI examined the high frequency economic indicators in their process of assessment and inflation forecast- ing, their inflation forecasts have been below the mark. Similarly, the monetary policy committee (MPC) could not predict the sharp disinfla- tion following demonetization on 8th November, 2016 resulting in higher real interest rate regime. This shows that the monetary policy governance under the new monetary policy framework of the RBI needs to be revisited to align it with the economic reality of India.</p></div></div></div>

scholarly journals Theoretical aspects of mechanism of interaction between money and credit

2019 ◽  
Vol 2019 (4) ◽  
pp. 83-93
Author(s):  
Oleg Usherovich Avis
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Commercial Banks ◽  
Banking System ◽  
Financial System ◽  
Bank Lending ◽  
National Bank ◽  
Weak Points ◽  
The Stability

The paper describes the central bank monetary policy that has been heavily criticized, largely due to the banks’ inability to identify emerging risks in a timely manner and to prevent threats to the stability of the entire global financial and banking system. A more rigorous expert-theoretical and public assessment is typical for analyzing the role of commercial banks in these processes, whereby they are recognized as the main culprits of recurrent crises. The excursion into the evolution of theoretical views on the problem under study allows to conclude that it is related to the credit nature of money, in which the activities of commercial banks are of great importance. This idea was shared by many foreign and Russian scientists, who at one time offered their recipes for improving the monetary mechanism, but remained not taken into account in practice. The initial positions of bank lending processes and money making on their basis in volumes and quality, often unregulated, have been analyzed. Much attention is paid to the role of the Central Bank, the bank customers and the state in shaping the credit nature of money. As an alternative to modern methods of monetary regulation, the idea of full-value money has been described. As an example, the phenomenon of the Swiss full-value money initiative in 2018 has been given. It is noted that the initiative demanded to ban issuing electronic (non-cash) money from the commercial banks in order to stabilize the financial system. The weak points of the reform include a threat to the stability of the money value, the low degree of independence of the National Bank of Switzerland. It has been inferred that the events taking place in the modern financial system may indicate significant transformations of the design and toolkit of the modern monetary policy

The Monetary Policy of the Reserve Bank of India.

1949 ◽  
Vol 59 (235) ◽  
pp. 436
Author(s):  
Cecil Kisch ◽  
K. N. Raj
Keyword(s):  
Monetary Policy ◽  
Reserve Bank ◽  
Reserve Bank Of India
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