p class=”source”a HREF=”http:\/\/www.nytimes.com\/2008\/12\/20\/business\/20nocera.html?pagewanted=all”www.nytimes.com\/a\/p
\np class=”summary”MUMBAI, INDIA, December 22, 2008: So far, India\u2019\u2265 banking and real estate market remains steady and secure amidst the economic turmoil affecting many other countries. \u201c\u00e2n India, we never had anything close to the subprime loan,\u201d\u2020said Chandra Kochhar, the chief financial officer of India\u2019\u2265 largest private bank, Icici. \u201c\u00c5ll lending to individuals is based on their income. That is a big difference between your banking system and ours.\u201d\u2020She continued: \u201c\u00e2ndian banks are not levered like American banks. Capital ratios are 12 and 13 percent, instead of 7 or 8 percent. All those exotic structures like C.D.O. and securitizations are a very tiny part of our banking system. So a lot of the temptations didn\u2019\u00a5 exist.\u201d\u00a2r \/br \/Yet two years ago, the Indian real estate market \u2014\u2020commercial and residential alike \u2014\u2020was every bit as frothy as the American market. So why did the Indian banks stay on the sidelines and avoid most of the pain that has been suffered by the big American banks?br \/br \/Part of the reason is cultural. Indians are simply not as comfortable with credit as Americans. \u201c\u00c5 lot of Indians, when you push them, will say that if you spend more than you earn you will get in trouble,\u201d\u2020an Indian consultant told me. \u201c\u00c5mericans spent more than they earned.\u201d\u2020Mr. Parekh said, \u201c\u00ecavings are important. Joint families exist. When one son moves out, the family helps them. So you don\u2019\u00a5 borrow so much from the bank.\u201d\u2020\/phr \/<\/p>\n","protected":false},"excerpt":{"rendered":"
p class=”source”a HREF=”http:\/\/www.nytimes.com\/2008\/12\/20\/business\/20nocera.html?pagewanted=all”www.nytimes.com\/a\/p p class=”summary”MUMBAI, INDIA, December 22, 2008: So far, India\u2019\u2265 banking and real estate market remains steady and,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7321","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/posts\/7321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/comments?post=7321"}],"version-history":[{"count":0,"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/posts\/7321\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/media?parent=7321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/categories?post=7321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hinduismtoday.com\/hpi\/wp-json\/wp\/v2\/tags?post=7321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}