Pradeep Kumar的动态

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MBA Finance Student

I'm excited to impart the knowledge I gained from my internship. We conducted research on the Chinese Bank Crisis this week with the help of our external mentor, Balachandran Venkataraman, CFA ??Economic research analysts can learn a lot from the experiences of Chinese bank crises. The overshadow banking sector's role is one of the main causes for concern. Though their reliance on short-term funding to make long-term loans created a ticking time bomb, these unregulated institutions drove the rapid growth of credit. As the economy soured, these institutions encountered liquidity shortages, and defaults spread throughout the financial system, posing a risk to wider instability. ??The relationship between state-owned enterprises (SOEs) and Chinese banks is another important lesson. A risky feedback loop was created by banks' heavy investment in SOEs. Banks that held the debt of SOEs suffered when they faltered financially. Furthermore, because institutions expected bailouts in the event of trouble, implicit government guarantees for certain banks encouraged riskier lending practices. This additional "moral hazard" made vulnerabilities worse. The crises also revealed significant regulatory gaps. The financial system grew faster than regulations, which left many institutions unmonitored and open to reckless behaviour. It was challenging to determine the actual financial health of banks and other financial players due to lax accounting standards and a lack of transparency. These crises highlight how crucial careful liquidity management is. To weather tough Financial Times, banks must diversify their funding sources and keep sufficient reserves. Furthermore, a healthy real estate market is essential because Chinese bank crises have frequently been associated with booms and busts in this industry. Lastly, it is important to pay careful attention to how well the government intervenes during these crises. Even though taking action by the government can help stabilize the system temporarily, it's vital to think about any potential negative effects, like discouraging market discipline and postponing necessary reforms. #PIBM #InternshipbyPIBM #PIBMPune Paterson Securities Pvt. Ltd

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