RBI skeptical on Credit Suisse crisis
The Reserve Bank of India (RBI) is monitoring developments related to Credit Suisse since the global investment bank and financial services firm is facing a downfall due to various reasons like multi-billion dollar losses, top management changes etc.
The Reserve Bank of India is currently under process of monitoring developments related to Credit Suisse. Strings of scandals, multi-billion dollar losses, and a non-motivational strategy over the years has led the 167 year old investment bank and financial services firm Credit Suisse to a crisis.
According to sources, “As the Swiss lender has limited base and scope in India, any major impact is unlikely”.
Local banks and money market traders have cautioned against any fresh counterparty exposure against the lender and are currently under wait and watch mode. With a single branch in India, Credit Suisse has a 1.5% share among foreign banks in India. Its share of banking assets is at 0.1% and about 70% of the bank’s assets in India are in short-term government securities.
According to the chief government bond trader at a large private sector bank, “Banks in India have already downgraded Credit Suisse in their internal ratings so fresh trading positions with them is now likely”.