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Submitted by SAMEER MOHNOT FCA INDIA on
"YES" Financial stability as the word suggests depends on the sustainable financial growth. With reference to SOBs, the promotion of financial stability depends upon the factors such as how professionally the financial regulations are earmarked and adhered to by SOBs. A clear defined mission statement having finacial viability in its working for any SOB is key to the promotion of financial stability. A very clear regular check and balance mechanism is a must for loans not falling prey to NPA (Non Prforming Assets)for SOBs. Social Objective of the SOBs can be best achieved to the highest level of satisfaction in a sustained manner when and only when loaning and funding campaign have parameters to serve as a watch-dog for the SOBs financial health. The reasons of the failure of the private sector banks revolves around above benchmarked feasability criteria. The social welfare quotient should be matched with the Cost-benefit analysis quotient and the Opportunity Cost quotient for all time success of SOBs in promoting the financial stablity and access. SOBs do have an exceptionally upper end in demonstrating the same by virtue of its clear State Mandate and long term commitment for promoting financial stability across the border.