Fiscal Policies and Governance of Financial Institutions


This research programme focuses on the current state of governance and stability of financial institutions across the world, with a particular reference to Indian financial institutions. This collaborative research is by Ruth Kattumuri and Rachita Gulati.

The effective governance of financial institutions has been emphasised as a key instrument for promoting stability, in the aftermath of the global financial crisis of 2007-09. With a series of reforms in all sub-sectors of the financial system, we expect that financial firms would face greater monitoring and stringent governance and regulation. The relevance of governance and its impact on overall stability of the financial system merits comprehensive research and analyses for understanding governance of financial institutions.

This research programme focuses on the current state of governance and stability of financial institutions across the world, with a particular reference to Indian financial institutions. The rationale of the programme is to develop further understanding of the effectiveness of governance reforms and where the policy thrust should be for ensuring the stability of financial institutions. The focus of research includes commercial banks, cooperative banks, microfinance, mutual fund companies, as well as insurance firms. We aim to analyse governance of financial institutions with respect to compliance with existing regulations, and how non-compliance could risk efficiency, risk-taking behaviour and stability of the financial system.

This collaborative research is by Ruth Kattumuri and Rachita Gulati.