Banks around the world, including those in India, are in the forefront of managing the challenge of crisis resolution. Since it is so topical, I would like to take this opportunity to share my perspective on the current global turmoil, its impact on India, the outlook for the Indian economy and the challenges that lie ahead for the Indian banking system, in particular.
Global financial outlook The global financial situation continues to be uncertain and unsettled. What started off as a sub-prime crisis in the US housing mortgage sector has turned successively into a global banking crisis, global financial crisis and now a global economic crisis. Text book economics often cites housing as a prime example of a non-tradable good.