tailieunhanh - Deregulation of Savings Banks’ Deposit Interest Rates

Finally, another issue, which has aroused a considerable amount of interest in the literature, is the role of the bank-customer relationship in credit risk. Non-financial companies can benefit from close relationships with banks through easier access to credit, in terms of both the amount of credit they can obtain and how much it costs them, the protection they have during recession and even an implicit insurance of the cost of finance [Petersen and Rajan (1994)]. The close bank-customer relationship may produce informational rents for the bank [Sharpe (1990) and Rajan (1992)] enabling it to exercise a certain degree of market. | Deregulation of Savings Banks Deposit Interest Rates Usha Thorat Kishori J. Udeshi . Tarapore o FORUM OF FREE ENTERPRISE Free Enterprise was born with man and shall survive as long as man survives . - A. D. Shroff Founder-President Forum of Free Enterprise EDITOR S NOTE In more than one sense this year s M. R. Pai Memorial Award function organised jointly by the All India Bank Depositors Association AIBDA Mumbai and the Punjab and Maharashtra Cooperative Bank Ltd PMC Bank with the support of the FORUM was remarkably successful. First the award sponsored by the PMC Bank was conferred on one of the most deserving persons Dr. Sunita Narain for her outstanding contribution to social and ecological issues as well as her multi-dimensional achievements through constructive activism in such diverse fields as climate change air and water pollution water and food safety wild life conservation education research and training. Second it provided a unique opportunity for having interactive discussions with three former Deputy Governors of the Reserve Bank of India Mrs. Usha Thorat Mrs. Kishori J. Udeshi and Mr. S. S. Tarapore on the subject that is of topical interest from the perspective of bank depositors namely the issue of deregulation of savings bank SB deposit interest rates. Third it was embellished by the release of the second edition of the biography of late Mr. M. R. Pai authored by Mr. S. V. Raju. It was an occasion for many of his friends and admirers to recall his great contributions among other things to the cause of consumer welfare and bank depositors interest. Last it evoked active participation from the distinguished audience and more significantly from young professionals and college students. The Forum therefore considers it appropriate to share with our wider audience a crucial aspect of this eventful function namely the presentations of three eminent former