LIQUIDITY CRISES
Global climate talks open with big questions, smaller goals
Climate negotiators from nearly 200 countries are attending COP31 in Antalya, Turkey, to address rising global temperatures and emissions. The summit will focus on achieving existing commitments rather than making ambitious new goals amidst geopolitical tensions and financial constraints.
Rising debt, non-bank finance may limit ECB policy flexibility, says Schnabel
Rising public debt and growing non-bank financial institutions could constrain the European Central Bank's ability to manage inflation, ECB board member Isabel Schnabel warned. She flagged risks from leveraged investors, market volatility and deteriorating public finances, urging stronger oversight of non-bank lenders and warning that financial stress could force central bank interventions, potentially undermining monetary policy independence and complicating economic stability.
Beware! Blind investing in smallcaps won’t make you money as 148 of 250 stocks tumble in 2026
More than half of the Nifty 250 stocks have delivered negative returns in 2026 despite the index gaining over 7%. Experts flag elevated valuations and persistent FII selling, stressing selective stock picking as earnings growth and performance diverge across market segments.
Global Market | Central banks face tougher crisis-management role as public debt rises: BIS chief
BIS chief Pablo Hernández de Cos warned that future financial crises could be harder to manage amid soaring public debt, fiscal deficits and volatile bond markets. Growing non-bank financial risks and rapid technologies could accelerate turmoil. He urged stronger regulation, coordinated government action and international cooperation to preserve central banks’ crisis-management capabilities.
RBI Governor Sanjay Malhotra flags rising financial risks, warns against complacency as West Asia conflict adds to inflation pressure
Sanjay Malhotra highlighted the need for vigilance regarding financial vulnerabilities at the Kautilya Economic Conclave. He emphasized that banking and financial stress can develop suddenly yet take years to resolve. Malhotra pointed out the interplay of geopolitical and economic factors complicating current financial stability predictions. He stressed the Reserve Bank of India's role in maintaining financial resilience through appropriate regulations and supervision.
Quote of the day by Jean Marie Eveillard: "If you are a value investor, every now and then you lag, or experience what consultants call tracking error. It can be very painful. To be a value investor, you have to be willing to suffer pain."
Renowned investor Jean-Marie Eveillard says value investing requires patience, discipline and the willingness to endure painful periods of underperformance. He argues that investors must accept tracking error and remain focused on valuation, fundamentals and long-term intrinsic value despite shifting market preferences.
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Quote of the day by Irving Fisher: "A chief cause of crises, panics, runs on banks, etc., is that risks are not independently reckoned, but are a mere matter of imitation. A crisis is a time of general and forced liquidation"
Economist Irving Fisher warned that investors copying one another can amplify financial risks. Rising optimism can fuel credit and asset prices, while sudden fear can trigger forced liquidation, falling prices, tighter liquidity and a self-reinforcing cycle that deepens financial crises.
‘Getting rich slowly is boring but…’: At 46, Ankur Warikoo shares 6 money rules he wishes he knew at 22
Ankur Warikoo advocates for young professionals to adopt automatic savings habits and be wary of lifestyle inflation. He stresses that having an emergency fund is essential and that one should focus on the long-term value of purchases rather than their immediate costs. By prioritizing early investments, individuals can harness the benefits of compounding interest to build real wealth.
Investing beyond Trump, oil prices and bond yields: 5 large-caps from different sectors with upside potential of up to 17%
The US-Iran war is escalating once again. And as Brent crude went past $91 a barrel, Indian equities have come under pressure; the war is clearly dictating the mood on Dalal Street. The question investors are asking is the same one they ask every time the Gulf erupts: How long will this last? No one knows. It could end tomorrow, or in a few weeks. It could also stretch well beyond what the markets currently expect.
Is Fed communication broken - and can Kevin Warsh fix it?
Most economists agree that frequent, clear communication and greater transparency are good things for central bankers. Whether Warsh likes it or not, markets need a message. In today's environment, a failure to communicate is simply not an option.
Quote of the day by Myron Scholes: "At times of shock, converting illiquid assets to cash to build flexibility is very expensive. Finding an umbrella in a rain storm might be impossible or very costly."
Nobel laureate Myron Scholes emphasizes liquidity's value during market shocks. Illiquid assets become difficult to sell without significant price reductions. Finding cash during a crisis is often impossible or extremely costly. Investors should maintain adequate liquidity and diversify their portfolios. This preparation ensures flexibility and avoids forced sales during volatility.
Widen the net, but hold the safety line
Central banks, including the Fed and BoJ, have increasingly used unconventional monetary policies to address financial market crises. While the RBI has been more conservative, the growing interconnectedness of financial institutions may necessitate direct intervention with NBFCs and MFs.
RBI may extend lending to NBFCs, MFs during crises
The Reserve Bank of India is contemplating expanding its role as lender of last resort to include NBFCs, mutual funds, and microfinance institutions during extreme liquidity crunches. This consideration stems from increased interconnectedness within the financial system and the potential for contagion.
India to enter into bilateral Rupee swap agreements with SAARC countries: RBI
The Reserve Bank of India, in collaboration with the Indian government, has unveiled a revised framework on currency swap arrangements with South Asian Association for Regional Cooperation (SAARC) countries for the period spanning 2024 to 2027.SAARC comprises Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
With crises behind, will RBI dust off the liquidity framework?
Since the last MPC meeting in February, global financial markets have come full circle. Traders' bets have swung like a pendulum - from monetary easing to overcome an economic recession, to tightening to fight against inflation, and finally to easing for the sake of financial stability. All of that occurred in a matter of four months.
CoinDCX restricts crypto withdrawals citing higher compliance requirement
After the issue gained traction on microblogging platform Twitter, CoinDCX’s head of marketing, Ramalingam S., wrote on June 20 that “while some wallets are under maintenance there is a larger compliance requirement due to evolving regulatory needs resulting in increased scrutiny. The new process is being rolled out in phases, and it will reach all users in due course.”
The mistakes we make by buying gold
The lure of gold was always pretty strong for Indians, but now there’s a marketing machine pushing it hard.
View: A data-driven rescue mission for the economy
The picture for non-listed firms isn’t so good, with leverage rising to 43% from 37% in 2008. The last thing one wants is to make these medium and small firms borrow more and emerge out of the Covid-19 crisis with unsustainable debt levels.
RBI says will take all necessary measures to keep markets stable
RBI said it will take all necessary measures to ensure that money, debt and forex markets remain adequately liquid and stable, and continue to function normally.
Liquidity very serious issue for FPIs, not taxes or surcharges: Raj Bhatt, Elara Capital
Govt needs to create a special situation fund of a minimum Rs 5 lakh crore through sovereign bonds.
Promoter-market operator nexus breaks as MF money dries up
BSE Midcap and Smallcap indices have plunged 9 per cent each since beginning of the year.
Worries are easing, but stocks to remain jittery till year end
RBI and the government are now aligned to lubricate the economy with liquidity.
How markets reacted to geopolitical crises
In the six months following the onset of World War I in 1914, the Dow dropped more than 30%.
RBI, Central Bank of Sri Lanka ink currency swap agreement
The Reserve Bank signed a special currency swap agreement with the Central Bank of Sri Lanka that will allow the latter to draw up to USD 1.1 billion.
There'll be another crisis; and impact will be felt by markets: Jamie Dimon
"Some things never change - there will be another crisis, and its impact will be felt by the financial markets." says the JPMorgan CEO.
A new deal for Europe. Over to US now
A major step has been taken by European Union to make Europe’s 8,200 banks more solid and more transparent.
European investors expect Eurozone crisis to persist for another year: Survey
Fitch Ratings' latest quarterly European fixed income investor survey shows that most survey participants think the eurozone crisis will persist through 2012.
IMF to boost lending resources: Report
The International Monetary Fund is seeking to boost its lending resources from 750 to 1,000 billion dollars to better handle future financial crises, a report said Monday.
Bank bailouts: Cost of inaction far greater, says IMF official
US and European government bailouts of ailing banks may be unpopular with taxpayers but the cost of doing nothing would be far greater, says a senior IMF official.
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