Sub prime crisis is not yet over: StanChart
Many banks and financial institutions in the US and Europe went bankrupt due to the crisis in the US where home loan borrowers could not pay their loans after rise in interest rate.
By PTI |
NEW DELHI: Claiming that the sub-prime crisis in the mortgage market has not affected the bank, Standard Chartered Bank Chairman Mervyn Davies on Wednesday said the crisis was not yet over and it would take few months to tide over.
"Sub-prime crisis has been a real shock, though Asian markets like China and India have remained unaffected. It is not yet over and it may take few more months before the crisis is over," said Davies, who is in India to attend the banks board meeting.
Many banks and financial institutions in the US and Europe went bankrupt due to the crisis in the US where home loan borrowers could not pay their loans after rise in interest rate.
The sub-prime crisis across the world has yet again proved that the (banking) regulators of the world need to come together and make a new international framework to regulate. One could not look at banks just as India, China or the UK, he said.
"Because it is one market globally, so I think that G-7 and BRIC (Brazil, Russia, India and China) governments should come together and work out how to control and regulate the banking industry," he said.
He also said like growing international collaboration on the issues of health, poverty, education, governments should strengthen on the issue of banking as well through WTO. He said the interest rates were like to remain stable at the international level in the mid-term, except for the concerns on commodity and energy prices which could have impact on the inflation outlook.
"Sub-prime crisis has been a real shock, though Asian markets like China and India have remained unaffected. It is not yet over and it may take few more months before the crisis is over," said Davies, who is in India to attend the banks board meeting.
Many banks and financial institutions in the US and Europe went bankrupt due to the crisis in the US where home loan borrowers could not pay their loans after rise in interest rate.
The sub-prime crisis across the world has yet again proved that the (banking) regulators of the world need to come together and make a new international framework to regulate. One could not look at banks just as India, China or the UK, he said.
"Because it is one market globally, so I think that G-7 and BRIC (Brazil, Russia, India and China) governments should come together and work out how to control and regulate the banking industry," he said.
He also said like growing international collaboration on the issues of health, poverty, education, governments should strengthen on the issue of banking as well through WTO. He said the interest rates were like to remain stable at the international level in the mid-term, except for the concerns on commodity and energy prices which could have impact on the inflation outlook.
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