There was an article in the Financial Express of October 15th on rumours about safety of deposits in banks.I had written a long letter to FE.
Here’s the final version that was printed in FE of 20.02.08:
Letters to the editor : Twin needs to survive crisis
The Financial Express Posted: Oct 20, 2008 at 2320 hrs IST Updated: Oct 20, 2008 at 2320 hrs IST
Janmejaya Sinha, in his article (Responsibility, not rumour, Oct 15), has rightly said that caution, pragmatism and confidence are the key to survive the present financial turbulence. Rumours about ICICI Bank’s weakness could have led to a panic run on its deposits, but thanks to clarifications and ads in the media, the bank contained the damage. The small investor is worried about the safety of his/her deposits. RBI and the FinMin also chipped in with their assurance that all was well. Responsibility and transparency are the twin needs of the hour for banks and regulators alike.
J S BROCA