A good and informative article shared from my friend Shri Arvind Mannur’s post: MAJOR POLICIES THAT AFFECT BANKS: All the major policy matters decide the destiny of banks. Look at the following: 1. MONETARY POLICY decides the volume of business growth, interest rates on deposits & lending, and all other prudential regulations. 2. FISCAL POLICY…
What is Negative Interest Rate? DEFINITION of ‘Negative Interest Rate Policy (NIRP)’ A negative interest rate policy (NIRP) is an unconventional monetary policy tool whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent. A negative interest rate means the Central Bank and perhaps private banks…