Follow Us:
Monday, July 04, 2022

Post 2008, financial markets have beyond regulatory control: SEBI Chairman UK Sinha

"BRICS should come together to share their experiences from bond markets and perhaps, also develop a BRICS bond market," he said.

By: PTI | Mumbai |
September 27, 2016 5:25:43 pm
Sebi Chairman U K Sinha, Sebi Chairman Sinha, Sebi Sinha, Sebi chief Sinha, chairman Sinha, chairman U K Sinha, U K sinha, sebi, Extraterritoriality, global financial, Emphasising the need for better coordination among financial regulators globally, Sebi Chairman UK Sinha on Tuesday said markets have gone beyond the control of policymakers post 2008 credit crisis.

Emphasising the need for better coordination among financial regulators globally, Sebi Chairman UK Sinha on Tuesday said markets have gone beyond the control of policymakers post 2008 credit crisis. Addressing the BRICS bond markets summit here, Sinha said after the 2008 financial crisis, the unconventional policies that global central banks are following have created serious challenges and uncertainties in global bond markets.

The uncertainties have become so large that “today financial markets are beyond the control of national policymakers,” he opined.

Watch What Else Is Making News

The Sebi chief noted that balance sheets of major banks like that of the US Fed, the European Central Bank, Bank of England and Bank of Japan, which have been following near-zero or even negative interest policies, have become too large.

Subscriber Only Stories
Skin Allergies In Children – What parents need to know?Premium
What makes KuCoin P2P Trading Platform a Good Choice To Buy Crypto?Premium
Airtel Demonstrates Immersive Video Entertainment On 5G; Recreates Kapil ...Premium
Is It A Good Idea To Keep One Account For All Your Financial Transactions?Premium

“These central banks have blown up their balance sheets by $7.2 trillion since the 2008 global credit crisis. There are also serious flaws in monetary transmission due to these unconventional policies. The broad money supply has increased by over $9 trillion, but the actual flow to the corporate sector is hardly $1.8 trillion,” Sinha said.

Calling for better coordination between global regulators, Sinha said a good beginning can be started among the BRICS regulators and other policymakers.

“BRICS should come together to share their experiences from bond markets and perhaps, also develop a BRICS bond market,” he said.

Sinha also expressed concern over the prevailing negative interest rates in many of the large economies, saying they are also creating uncertainties in the market.

On the undeclared currency wars, primarily led by China, he said competitive devaluation of currencies is also impacting the markets, especially those which are export-oriented.

Hot Offer Putin claims victory in Mariupol, leaving Ukrainian defenders holed up Subscribe Now

📣 Join our Telegram channel ( The Indian Express ) for the latest news and updates

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
X