Ep 193: The Fight of the Central Banker
The Seen and the Unseen - hosted by Amit Varma
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Public Sector Banks Are a Repression of the Savor
Banks are now very fearful of any fur losses, so they want to keep evergreening and keep lending to the same borrowers who have already defaulted. So this is called a zombe lending. Or they do lazy lending, which is that they lend entirely to the government,. That doesn't require any extra capital to be brought by the shareholders. Effectively, that's again, a repression, because they've no capital. If r bi is being forced to keep interest rates low, then deposit rates will eventually follow.
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