As discussed above HHI of the Indian banking system is about 518 which is very low and therefore there is room for consolidation. However, as the HHI scores approach a level of 1800, the competition authorities are usually alarmed about competition issues. Hence, the aspects related to competition and consumer protection need to be evaluated diligently in the context of consolidation. 23.
Events such as the 1929 stock market crash, or the September 2008 collapse of Lehman Brothers, create a vast amount of “irreducible uncertainty”, which exerts paralysing effects on spending decisions and may cause the economy to slide into a depression.