It looks like India is going the same way as Wall Street and the American Banking system by creating gigantic banking conglomerates who will have enormous power of centralized decision making end up owning much of the country’s assets and expand their operations into so many sectors that any hindrance to the functioning of these banks will essentially bring down the entire national economy.
From the Hindustan Times:
Moves afoot for mergers of public sector banks
The government is moving afresh to create mega banking entities by consolidating public sector banks to face stiff competion from new private banks that are expected following the passage this week of a banking reform bill that would usher in more bank licences.
Parliament on Thursday finally passed the Banking Laws (Amendment) Bill, paving the way for the entry of new banks in the country.
“The issue of consolidation (of public sector banks) has been taken up by the finance ministry, though it is still at a nascent stage,” said a senior finance ministry official on condition of anonymity.
This is exactly like what is happening now in the European Union, where the European Central Bank is creating a gigantic banking union which will oversee all the banking operations in the EU. The main propaganda that is used to justify such mergers is that it will help to create more “efficient” banks, although no one bothers to explain exactly what they mean by efficiency.
Over the last four years, this has proven to be the elitist theme of centralization being forced into one nation after the other and one only needs to look at the condition of the European economy to understand what such centralization of financial power ultimately brings about.
Ever since the creation of the European Central Bank, European countries have had to bear with a steadily incremental tightening of ‘austerity measures’ and ‘debt-restructuring’ proposed by institutions like the IMF. Time after time we see the same tyrannical measures being forced upon the people while the economic sovereignty of a nation is destroyed and all the real assets are handed over to the financial power elites who run the operations of big central banks. They rig the interest rates, manipulate market prices and crash economies whenever they see an opportunity to make a killing out of it, literally.
If this is what is meant by creating an “efficient” system, then I am not sure if we really need to make our financial system more “efficient” over here in India as well.
The giant bank mergers are also being planned in order to leverage India’s position at the soon to be created BRICS bank which is being set up by the major developing economies of Brazil, Russia, India, China and South Africa. Although the BRICS alliance is being paraded around as some kind of resistance to the present domination of the Anglo-American financial elites of the IMF and the World Bank, the underlying mechanism of centralized financial power remains largely unchanged. It has also been exposed that banks like Goldman Sachs have been heavily funding the whole BRICS movement, which pretty much ends any hope of future reforms coming from this institution.
It is completely unsurprising to see that neither the media nor any of the general public have paid much attention to this issue and they go about their lives as though these developments are completely irrelevant.
While the rest of the world is waking up to financial tyranny, the politicians and the media in India are doing their best to forge the opinions of a largely ignorant public in favour of the same kind of unreliable too-big-to fail institutions which nearly destroyed the entire global economy in 2008 during the collapse of Lehmann Brothers.
Creating such mega banks will only continue to dis empower the people of the country and will take away even more decision making powers from the democratic institutions. Sadly the people of India have been thoroughly brainwashed to remain busy watching cricket or shopping at the local mall.
by Vinay Raj
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