Tag: Money & Currencies

Reflections, Ideas & Perspectives

Silicon Valley Bank: How Does a Bank Collapse in 48 Hours?

Indrajit Roy Choudhury

Silicon Valley Bank (SVB) was a well-capitalized institution seeking to raise some funds. Within 48 hours, a panic induced by the very venture capital community that SVB had served and nurtured ended the bank’s 40-year run. While relatively unknown outside of Silicon Valley, SVB was among the top 20 American commercial banks, with US$209 billion in total assets at the end of last year. Faced with higher interest rates, loss of IPOs, and a funding drought, SVB’s clients began pulling money out of the bank. Lenders somewhat similar to SVB are in an unfortunate situation. A failure to protect deposits over $250,000 could cause a loss of faith in other mid-sized banks. Analysts said SVB’s collapse is unlikely to set off the kind of domino effect that gripped the banking industry during the financial crisis.

Reflections, Ideas & Perspectives

The Indian Rupee’s Struggle: A Detailed Analysis

Indrajit Roy Choudhury

The Indian rupee has plunged more than 6 per cent against the US dollar this year and tumbled to record lows against the American currency in recent weeks, weighed down by broad strength in the greenback and as investors retreated from domestic share markets. This is in spite of the Indian central bank’s conviction and actions to stall a freefall. The Reserve Bank of India (RBI) has attempted to save the vulnerable rupee. The analysts say the dollar is likely going to remain strong for the next three months, possibly to the end of the year. The Fed wants to maintain a strong dollar so that the dollar can remain the world's major reserve currency.

Reflections, Ideas & Perspectives

The Emerging Challenge to Dollar Dominance: China’s Renminbi

Indrajit Roy Choudhury

Economic sanctions on Russia have highlighted the US dollar's power and the risks of heavy reliance on it, fueling discussions about China's Renminbi (RMB) as a global reserve currency if Beijing loosens its grip on the economy. Over 70 central banks hold RMB, and its popularity for international transactions is growing. China must open its markets, ensure currency stability, refrain from manipulation, and develop a mature financial system to boost RMB's global role.

Banking Excellence & Financial Innovation

Navigating the Digital Landscape: Understanding the Nuances of Digitization and Digitalization in Banking

Indrajit Roy Choudhury

Digitalization and digitization, while often used interchangeably, refer to different concepts: the former represents the use of digital technologies to change a business, while the latter designates the transition from analog to digital forms. The banking sector exemplifies a field facing a shift towards pervasive digitalization, facilitating branchless banking and providing enhanced customer services. However, challenges such as regulatory restrictions and digital skill gaps persist. This digital transformation in banking is seen both as a challenge and an opportunity for future growth.

Cybersecurity, Compliance & Risk Intelligence

The Rise of Logical ATM Attacks: A Growing Threat to Global Banking Systems

Indrajit Roy Choudhury

Logical ATM attacks have become a major concern for financial institutions worldwide, as hackers exploit vulnerabilities in bank networks to remotely manipulate ATMs and steal millions. These covert attacks underscore the evolving threat landscape of cybercrime and the need for robust cybersecurity measures, collaboration, and vigilance to safeguard the integrity of global banking systems.