Against the backdrop of India’s economic crisis, a new book titled Quest for Restoring Financial Stability in India by Viral V Acharya was released at a virtual interactive session. Published by SAGE Publications India, the book chiefly analyses how under-capitalised banks with weak asset quality and profitability remain vulnerable to further stress and are a cost to the real economy, while looking at what can be done about it. The session was inaugurated by Dr Y V Reddy, former Chairman, 14th Finance Commission and Former Governor, Reserve Bank of India.
“The issues relating to financial stability in India have become more challenging since the speeches were delivered. In addition, the spread of virus has imparted more complications in the face of unprecedented fiscal challenges. In this background, the book is of special and urgent contemporary interest,” said Dr YV Reddy in his inaugural address. Keynote speaker Dr Duvvuri Subbarao lauded , “The conviction and concern with which Viral narrates the frontline battles of a policymaker to influence economic policy debates” adding, “The earnestness with which he writes about them is endearing and compelling.
” The evening concluded with a Q/A and a closing address by Dr Acharya, where he noted: “Post 1991 reforms, India undertook an upward and onward march in economic progress for close to two decades. Since then, lack of financial stability has emerged as its Achilles’ heel. The reasons for this are many. But, the foremost contributor has been the increasing dominance of banking and financial sector regulation by the unyielding deficit situation of the consolidated government balance-sheet.” He further added, “Reining in this fiscal dominance requires not just a strengthening of the institutional framework for fiscal management but also the right balance between the roles played by the government, the central bank, the markets, and the private sector in the economy. The book stirs up this important debate, gives it the primacy it deserves, and provides some useful inputs so together we can implement the much-needed long-lasting solutions to restore financial stability in India.”