Business Standard

Letter to BS: Banks face 'mismatch risk' between their assets, liabilities

There is a need to address the inherent compulsions that stop banks from passing on rate cut benefits to borrowers

money, investment, private equity, PE, banks
Premium

Business Standard New Delhi
The column “Why monetary transmission is not easy in India” (May 29) by Hasmukh Adhia was worth reading. The writer has identified a number of reasons for ineffective monetary policy transmission. The journey to bring in different yardsticks such as prime lending rate to benchmark prime lending rate and from base rate to marginal cost of funds based lending rate, has not facilitated the desired level of transmission so far. Besides the reasons narrated by the writer that are posing hurdles in effective transmission of monetary policy, one major risk that banks face is the “mismatch risk” — between its

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 29 2019 | 11:17 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com