Ex-RBI Governor Rajan Sees Emerging Markets as a Global Risk

The transcript discusses early warnings of a financial crisis, focusing on leverage and asset prices. It highlights the impact of trade actions on emerging markets, particularly in relation to the US-China trade tensions. The discussion also covers India's economic challenges, including the depreciation of the rupee and the need for fiscal stability. Finally, it addresses the necessity for banking sector reforms to tackle rising non-performing loans.

What was the main concern about the banking system that was initially dismissed by many?

• Overregulation

• Excesses leading to potential breakdowns

• High interest rates

• Lack of technological advancement

What are the two main issues that have remained high since the 2008 crisis?

• Leverage and asset prices

• Unemployment and inflation

• Interest rates and trade deficits

• Government spending and taxation

What is a significant concern for emerging markets in light of U.S. rate hikes and trade tensions?

• Political instability

• Lack of natural resources

• High dependency on trade

• Decreasing population

Which country's currency hit an all-time low due to trade tensions and rate hikes?

• Argentina

• Brazil

• India

• Turkey

What has been a major driver of India's current account deficit?

• High oil prices

• Low agricultural output

• Decreased foreign investment

• Rising unemployment

What is a critical reform needed in India's banking sector?

• Increased foreign ownership

• Improved governance

• Higher interest rates

• Reduced digitalization

What is the expected task for the new administration in India regarding banks?

• Improve governance

• Increase taxes

• Reduce interest rates

• Privatize banks