MemCast
MemCast / episode / insight
#banking-regulation2#brokerage1#india7
Regulation aims to protect systemic stability despite higher funding costs
  • By raising the cost of margin funding, the RBI seeks to reduce leverage‑induced risk.
  • While borrowing becomes more expensive, the trade‑off is a more resilient financial system.
  • The policy reflects a broader global trend toward tighter credit oversight.
PaulBloomberg Television00:34:38

Supporting quotes

Quote
00:34:38
“THEY WILL HAVE TO FIND ALTERNATIVE WAYS OF FUNDING SUCH AS MONEY MARKET BUT THAT MEANS HIGHER COST.” — Paul
Quote
01:06:30
“THE RBA HAS MADE IT VERY CLEAR THAT THEY WANT RULES RELATED TO THE CREDIT FLOW TO BE MORE TIGHTENED AND BROKERAGES TO TAKE UP EXTRA COST IF NEEDED.” — Paul

From this concept

India's Leverage Regulation Impact

The RBI's new rules curb credit to proprietary trading firms, causing short-term pressure on brokerage stocks while aiming to protect systemic stability.

View full episode →

Similar insights

“China will become the top global power by 2050, maintaining a leading position for decades”

AbhigyaDhruv Gupta

“India will reach a comparable global power status by 2050‑2060, driven by a post‑2020 “uncoiling” of economic energy”

AbhigyaDhruv Gupta

“India’s demographic advantage will fuel its rise, but internal governance challenges must be resolved”

AbhigyaDhruv Gupta