I am curious to know whether in Developed Nations like USA, UK, Germany, Are there any restrictions in giving loans to a specific Industrialist or a Group? If not, Is there a risk similar to 2008, where the collapse of one large bank in USA lead to massive Global sale off ? How this will be avoided in future ?
How that kind of risk is managed in general?
As we can see, few large groups in INDIA are also having Debt which is about 60% to 65% of Total Indian GDP. How such risk is managed if one of such large group fails to pay back their debt.
Certain sections in the media in Developed Nations are raising alarms over bubbles being artificially created in Stock Markets from time to time across the world, so just thought of checking what the Value Pickr community feels.
I may be wrong in my alarm, as everything as of now looks stable with Asset Quality of banks improving, at least officially on paper!!
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