What big things did Macquarie, and Jefferies, say about Indian banks? | Outcry in America, lock hanging on another bank.

 

What big things did Macquarie, and Jefferies, say about Indian banks?

Due to the collapse of America's Silicon Valley Bank SVB, a big apprehension is also arising whether such a crisis can arise in front of banks in India as well. Now a big question is also arising how safe is the money of the common people in Indian banks, and whether their money will also be drowned in the event of such a crisis?

 

Now Global Brokerage House Macquarie Group has clearly said that there is no threat like SVB in front of banks in India. Explaining the reason for this, Macquarie said that Indian banks are largely dependent on domestic deposits. And this is what is saving them from other global banks. Foreign banks are more likely to come in the wake of the threat posed by the Silicon Valley bank.

 

Macquarie analyst Suresh Ganapathy wrote that Indian banks stand out from the global banking crisis because they have no direct or indirect exposure to SVBs. They wrote that the Indian banking sector has a system of domestic deposits, whose investment in government securities has been talked about by the big global to be safe from the SVB crisis of Indian banks. 

Jefferies Group has also reiterated the same point of Macquarie. Jefferies also said SVB Financial Group's India exposure is low as its Indian subsidiary was sold in 2015, and the new company has good credit ratings and stable liquidity. Jefferies said the subsidiary was named SVB India Finance after Incense, which was sold to Temasek and United Overseas Bank.

 

Thereafter it was renamed Innoven Capital India. Prakhar Sharma of Jefferies said that the country's banks are in a very strong position. More than 60% of deposits are from household savings. Now the question arises that if any bank collapses in India or becomes a victim of SVB-like condition, then what will happen to the depositors who put money in the bank?

 

If a bank in India sinks, then the return of depositors up to ₹ 5 lakhs is fixed in it. DICGC insures this capital i.e. your deposits up to ₹ 5 lakhs in banks are completely safe. America's Silicon Valley bank collapsed on Friday. This bank is largely known for providing services to startups. Silvergate collapsed a week ago, followed by Silicon Valley Bank.

 

But the matter did not stop there. On Sunday, regulators also closed Signature Bank, the third bank in the US. It has created panic in the track and financial markets of the whole world. Many people are comparing the current situation with the financial crisis of 2008.

 

Overall, the global brokerage houses are denying any such crisis arising in front of Indian banks and this is a big relief for the common people and the government at the moment.

 

Outcry in America, lock hanging on another bank.

Another big news has come from America going through a banking crisis. There, after the Silicon Valley bank, the lock on the other bank is hanging. The name of this second bank is the Signature bank. Overall, there has been news of the closure of two banks in America in two days. What happened with Signature Bank, what is the full news, let us know.

 

In the last two days, two banks were closed in America and even after this, the markets of America are seeing a boom. However, the US government has assured the people that depositors' money is safe and they will be able to withdraw their money. During the banking crisis in the US, Signature Bank is now permanently closed as Signature Bank held cryptocurrency stock.

 

Because of the risk in cryptocurrency, US regulators has been decided to temporarily close the bank. Signature Bank is a regional bank and the shares of this bank fell on Friday. However, during the banking crisis in the US, the Treasury Department and other bank regulators of America gave a joint statement that all depositors of Signature Bank and Silicon Valley Bank will not suffer any loss. 

None of the depositors will have to bear any loss. In this regard, the US Federal Reserve has also called a meeting of the Commission, in which the measures to deal with the banking crisis are to be discussed. Because of the cryptocurrency stock situation, it has been decided to close the bank for a few days.

 

According to the report published on Business today, after the Silicon Valley bank, it has become the next victim of the ongoing banking turmoil in America. According to the New York State Department of Financial Services, the Federal Deposit Finance Corporation has taken control of Signature Bank.

 

Which had assets of $ 110.36 billion at the end of last year, while the amount of deposits in the bank is $ 88.52 billion. According to the report, the FDIC i.e. Federal Deposit Insurance Corporation said that A bridge bank has been set up, which will enable the bank's customers to access their funds. 

According to the FDIC, Signature Bank depositors and borrowers will automatically become Bridge Bank customers. On America's banking crisis, the President Joe Biden said, “I am committed to holding those responsible for this mess fully accountable and to continue my efforts to strengthen oversight of big banks so that we do not get into this situation again”. 

This is the third biggest failure in US banking history. Silicon valley bank was closed 2 days before this. It was the second largest FDIC-insured bank after Washington Mutual which collapsed during the financial crisis and is now the signature bank. The biggest crisis in America's banking sector came in the year 2008. 

That year the investment bank Lehman Brothers declared itself bankrupt. After this, economic recession and the back of the economy were broken in the whole world including America. If you like the information, please comment on our site www.tradeipohub.co.in. Thanks for reading.