The NPAs in the UK and US have risen from 0.9 per cent and 1.4 per cent in 2007 to 4.0 per cent and 4.9 per cent in 2009 respectively. The capital position of the banks, however, remained comfortable with most global banks continuing to step up their capital positions notwithstanding the crisis.
If we take a long sweep of history, there is no doubt that innovation has contributed to enhancing the quantum, quality and reach of financial intermediation. In recent years though, financial innovation has become a contentious issue. Unbridled financial innovation and the failure of regulators to check that are also being cited as among the culprits for the global financial crisis. 3.