Hurdles remain for an FMCI-type banking push
Banks are still facing uneven deposit mobilisation, and the special foreign-currency deposit route has helped some institutions more than others.
- Deposit mobilisation remains uneven across institutions and affects the stability of bank funding.
- The special foreign-currency deposit route has helped some banks more than others.
- Banks are balancing credit growth against deposit competition and funding costs.
Banks are still operating in a difficult funding environment, and the central challenge is to raise stable liabilities without slowing credit expansion. The special foreign-currency deposit route has benefited some banks more than others, and deposit mobilisation remains uneven across institutions.
The issue sits inside a larger banking question: how to maintain credit growth while managing deposit competition and cost of funds. That makes the topic relevant to banking stability, liability management, and the transmission of monetary conditions through the financial system.
Why the issue matters
UPSC can frame the issue as a banking-sector policy problem: how deposit mobilisation, foreign-currency liabilities, and cost of funds affect credit growth, balance-sheet stability, and financial intermediation.
Related dispatches
