Urjit Patel, the incoming central bank chief, has every intention of taking away their $100 billion pacifier. To see the enormity of the challenge, and why it will be crucial for Patel to succeed, start with banks' $1.57 trillion of net liabilities to depositors. From the point of view of banks earning a decent return on capital, that diktat is bad enough. By sitting on $100 billion in surplus public debt, they may be giving up $4 billion in potential profit. The latter badly need a crash course in credit risk, and they need it before Patel comes for their soother.

Source: Economic Times August 22, 2016 15:11 UTC