Yashwant Sinha says no to bank licenses to corporates

MUMBAI: Yashwant Sinha, chairman of the Parliamentary Standing Committee on Finance and a former Union Finance Minister today joined the chorus against corporates being given banking license as the conflict of interest could defeat the very purpose of having new banks. 

Sinha, a member of the Opposition Bharatiya Janata Party joined Nobel Laureate Joseph Stiglitz and theInternational Monetary Fund who are opposed to big corporates getting into banking. 

"I entirely agree with IMF," said Sinha told reporters. "It is a very bad idea to give new banking licence to a corporate. This was something when clear separation took place decades ago for very good reason and any relaxations in these norms is going to lead to not only unnecessary conflict of interest but also unnecessary risks to the financial system..

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