Y V Reddy: Payment and settlement systems – select issues Valedictory address by Dr Y V Reddy, Governor of the Reserve Bank of India, at the Regional Payment Systems Workshop, organised jointly by the Reserve Bank of India and the Bank for International Settlements, Hyderabad, 20 October 2006.
Let me now turn my attention to one of the stiffest challenges facing banks and savings banks in this regard – the low-interest-rate environment. We are all aware that persistently low rates are rocking the very foundations upon which many German institutions have erected their business models – I’m talking specifically about the ones that run highly interest-driven franchises.