The destiny of European lender Credit Suisse Group AG is of larger significance to the Indian banking sector than the cave in of Silicon Valley BankAccording to Jefferies India.
“Given the relevance of Credit Suisse to India’s banking sector, we see softer adjustments in assessment of counter-party risks, especially in the derivative market,” analyst Prakhar Sharma writes in a be aware.
As the financial institution “has a major presence in India’s derivatives market,” Sharma is looking at for any liquidity problems or counter-party dangers that can outcome from the fallout. Overseas banks in India have 4% to six% of property, however a big 50% percentage of off-balance sheet liabilities, in step with the be aware.
Credit Suisse owns greater than 200 billion rupees ($2.4 billion) of property in India, making it the twelfth greatest offshore lender, in step with Jefferies. Loans shape 73% of its general liabilities within the South Asian country, with the vast majority of them of a brief tenure, it added.
Sharma expects the country’s central financial institution to stay up for liquidity problems and counter-party publicity, and intrude as vital. He sees institutional deposits shifting extra against higher and high quality banks in India.
That mentioned, international banks make up simplest 6% of banking property, with the Swiss lender accounting for 1.5% of that percentage, and Jefferies forecasts a “softer impact on banking in India.”
Credit Suisse introduced that it was once providing to shop for again as much as 3 billion francs ($3.23 billion) of debt securities in a transfer that can lend a hand repair marketplace self assurance. Chief Executive Officer Ulrich Koerner has mentioned the financial institution’s monetary place is sound.
“Given the relevance of Credit Suisse to India’s banking sector, we see softer adjustments in assessment of counter-party risks, especially in the derivative market,” analyst Prakhar Sharma writes in a be aware.
As the financial institution “has a major presence in India’s derivatives market,” Sharma is looking at for any liquidity problems or counter-party dangers that can outcome from the fallout. Overseas banks in India have 4% to six% of property, however a big 50% percentage of off-balance sheet liabilities, in step with the be aware.
Credit Suisse owns greater than 200 billion rupees ($2.4 billion) of property in India, making it the twelfth greatest offshore lender, in step with Jefferies. Loans shape 73% of its general liabilities within the South Asian country, with the vast majority of them of a brief tenure, it added.
Sharma expects the country’s central financial institution to stay up for liquidity problems and counter-party publicity, and intrude as vital. He sees institutional deposits shifting extra against higher and high quality banks in India.
That mentioned, international banks make up simplest 6% of banking property, with the Swiss lender accounting for 1.5% of that percentage, and Jefferies forecasts a “softer impact on banking in India.”
Credit Suisse introduced that it was once providing to shop for again as much as 3 billion francs ($3.23 billion) of debt securities in a transfer that can lend a hand repair marketplace self assurance. Chief Executive Officer Ulrich Koerner has mentioned the financial institution’s monetary place is sound.