Financial crisis likely to continue: Banker

Source: PTI

November 06, 2008 15:21 IST

The global financial crisis and the risks emanating from it are likely to continue for some more time, a senior banker said.

"We may see some more things (continuation of the financial crisis) happening in Europe...we may see a regulatory change in the US (in the backdrop of the financial turmoil)," Citi's CEO for South Asia, Sanjay Nayar, said at the Ficci-IBA banking seminar in Mumbai on Thursday.

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The Indian banking system, was, however, in good shape though there exists some supply-side

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issues, Nayar said.

The SME and infrastructure sectors needed more fundsto be provided to them, he said.

In order to meet the challenges in the economy, the banking system needed long-term liquidity, Nayar said, while in the short-term there was a need for foreign currency requirement in the market.

According to the Citi official, banks needed to strengthen their risk-management systems.