Archive for May 16th, 2019

Why the World needs National Development Banks? (though India did away with NDBs…)

May 16, 2019

I don’t know but quite a few ideas which were rejected by Indian policymakers are making a comeback in global policy.

I blogged about how BIS is advising EME central banks to engage in forex markets. Now Stephany Griffith-Jones and and Jose Antonio Ocampo in this piece advocate national development banks, again an idea which took shape in India. Post-independence, we had development banks such as IFCI in 1949, ICICI in 1955 and IDBI in 1964. This was followed by NABARD in 1982, IDFC in 1997 and so on. In India, we called them Development Financial Institutions or DFIs.

Griffith-Jones and Ocampo say NDB’s offer following advantages:


Can the three musketeers click? Finance, technology, trust

May 16, 2019

Ravi Menon, Managing Director of Monetary Authority of Singapore in this speech names Finance, technology, trust as the three musketeers:

  • Set in the 17th century, the novel recounts the journey of D’Artagnan, who left for Paris to join the Musketeers of the Guard, and how he overcomes all adversities.
  • Together with him are three musketeers with contrasting personalities:
    • Athos who is intelligent;
    • Porthos who is adventurous; and
    • Aramis who is true and faithful.
  • But together they form a well-balanced trio that supports D’Artagnan on his journey.

The three musketeers today are Finance, Technology, and Trust, corresponding to Athos, Porthos, and Aramis.  Society is D’Artagnan. 

  • Can the three modern musketeers work together to support Society? 
  • Can they complement one another?  Can they click?

Finance is Athos, Tech is Porthos and Trust Aramis:

Like Athos, Finance is wise but can be complicated, and to some extent, mysterious and non-accessible to many people.  As a result, Finance – at least in its traditional form – is losing its appeal.

Technology is akin to Porthos, the fearless musketeer who is eager to try new ways for a better future.  In a similar vein, Technology presents us opportunities to revitalise Finance.

Trust is similar to Aramis, the third musketeer who is faithful and values friendship. Trust is a key attribute for the success of a financial ecosystem.

Hmm..Nice way to present the complex ideas…

%d bloggers like this: