Veteran Banker Sees Foreign Funds as Cure to India Credit Crisis
- Overseas investors can provide funds to shadow banks: Morparia
- Making bankruptcy law applicable to shadow lenders will help
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One of the most senior bankers in India has an antidote for the nation’s yearlong credit crisis that is showing no signs of abating: seek monies from overseas investors.
JPMorgan Chase & Co.’s chairman for south and south-east Asia, Kalpana Morparia, is advising policy makers to tweak bankruptcy rules to let foreign portfolio managers throw a lifeline to the troubled shadow banking sector. The overseas investors could also step in to fill the financing void left by the non-bank lenders, she said in a recent interview.