Central banks step in as Credit Suisse collapses.

The Hindu editorial today in Hindi

Another bank has fallen in the midst of the ongoing turmoil in global financial markets. On Sunday, global giant UBS agreed to buy out its troubled rival Credit Suisse – an important bank in the global system – for around $3.2 billion. The deal, which comes with significant guarantees from the Swiss government and the regulator, has been orchestrated to calm the global financial system and prevent a contagion. Credit Suisse’s fall comes only days after the collapse of three banks in the US. With fears of a repeat of the 2008 financial crisis gaining traction, central banks across the world have announced a coordinated response to ensure liquidity via enhanced swap lines to stabilise the financial system. However, concerns remain that the collapse of these banks is just the “first domino” to fall.

The Hindu editorial free today

The origins of the ongoing crisis can be traced to an environment of tightening financial conditions. In the case of the Silicon Valley Bank in the US, it had parked its deposits in safe investments. However with the US Federal Reserve embarking on aggressive monetary tightening, the value of its portfolio plunged. The bank had to sell its investments at a loss which created panic among depositors who were quick to withdraw. The problems at Credit Suisse, though, began some time ago. A series of wrong investment decisions and frequent leadership changes had dented investor confidence in the bank. A few weeks ago, the bank also admitted that its cash flow statements suffered from “material weakness”. In the midst of global financial turmoil, confidence in the bank ebbed further.

 

The mayhem in financial markets is likely to have implications for monetary policy. Until a few weeks ago, there was a view that the US Fed would hike interest rates by 50 basis points when it meets next to tackle inflation. However, the Fed will now have to carefully weigh the events of the last few weeks as it decides whether to continue to raise rates, perhaps by a lower quantum, or take a pause at this critical juncture and wait for the stress in the financial system to ease. The European Central Bank had last week chosen to press ahead in its fight against inflation, raising interest rates by 50 basis points. Its president, Christine Lagarde, though sought to differentiate between the tools used for inflation management and financial stability. Which way the Fed moves now will be known when the Federal Open Market Committee meets next on March 21-22. While India may appear relatively insulated from these events, the channels through which such a crisis can permeate into the domestic financial system and the broader economy need to be carefully monitored. As policy makers across the world navigate this tumultuous period, for both the Indian government and the Reserve Bank of India, the policy framework must be guided by the objective of maintaining macroeconomic stability.

The Hindu Vocabulary PDF 2022

Vocabulary

1. Step in (phrasal verb) – interfere, intervene, get involved, take action (in) order to solve a problem or provide help) हस्तक्षेप करना

 

2. Credit Suisse (noun) – a Swiss multinational investment bank and financial services company

 

3. Collapse (verb) – fail suddenly and completely पतन होना

 

4. In the midst of (phrase) in the process of doing (something).  के दौरान 

 

5. Ongoing (adjective) – continuing, continuous, current, continued जारी/ चल रही

 

6. Turmoil (noun) – Chaos, Disorder, confusion, uproar, mayhem, tumult, commotion उथल-पुथल

 

7. Buy out (phrasal verb) – the process of purchasing a company, the shares of a company’s stock in order to gain. ownership and control. खरीदना

 

8. Troubled (adjective) – experiencing difficulty, problems; Concerned, disturbed परेशान

 

9. Rival (adjective) – competitor, opponent, contestant, contender प्रतिद्वंद्वी 

 

10. Orchestrate (verb) to plan, organize, or coordinate something in a skillful or effective way

 

11. Contagion (noun) – the spread of a negative effect such as a financial crisis

 

12. Collapse (noun) – a sudden failure of an institution or undertaking.पतन 

 

13. Traction (noun) – Acceptance; popularity

 

14. Coordinated (adjective) – synchronized, harmonized, integrated, organized समन्वित

 

15. Liquidity (noun) – Cash, liquid asset, convertible asset नकदी, चल निधि

 

16. Via (preposition) – Through के माध्यम से 

 

17. Enhanced (adjective) – increased, augmented बढ़ा हुआ

 

18. Swap line (noun) – an agreement between two central banks to exchange currencies to provide liquidity in times of need

 

19. Stabilise (verb) – become stable, become constant स्थिर बनाना

 

20. Concern (noun) – Anxiety, worry, apprehension fear चिंता 

The Hindu Vocabulary PDF with Hindi Meaning

21. Domino to fall (noun) – the situation in which something, usually something bad, happens, causing other similar events to happen

 

22. Trace (to) (verb) – find or discover by investigation पता चलना

 

23. Environment (noun) condition, circumstances, situation, milieu

 

24. Tightening (noun) – a situation in a market where there is less of money available than is wanted or needed

 

25. Park (verb) – if you park money, an investment, etc. you leave it with another person or organization for a period of time.

 

26. Embark on (verb) – begin, start, commence, undertake, set about शुरू करना

 

27. Portfolio (noun) – A range of investments held by a person or organization.

 

28. Plunge (verb) – to drop suddenly and unexpectedly in value, price, or amount गिरना / घटना

 

29. Dent (verb) – reduce, diminish, undermine कम करना

 

30. Admit (verb) – concede, accept, accede, grant, agree स्वीकार करना

 

31. Turmoil (noun) – Chaos, Disorder, confusion, uproar, mayhem, tumult, commotion उथल-पुथल

 

32. Ebb (verb) – Fade, diminish, recede, disappear, abate, fail, decline Ho पड़ना, कम होना

 

33. Mayhem (noun) – chaos, extreme disorder, disturbance, havoc हलचल / तबाही

 

34. Likely (adjective) – probable, possible, expected संभावना

 

35. Implication (noun) effect, consequence, result, repercussion, knock-on effect प्रभाव 

 

36. Monetary policy (noun) – the measures taken by a central bank or other monetary authority to regulate the supply and cost of money in an economy to achieve certain goals, such as controlling inflation or promoting economic growth.

 

37. Basis point (noun) – 100 basis point = 1%

 

38. Fed (noun) – Federal Bank of U.S as like RBI of India.

 

39. Weigh (verb) – Consider, contemplate, think about, look into; assess the nature or importance of आकलन करना

 

40. Quantum (noun) – a share or portion. मात्रा 

 

41. Pause (noun) – a temporary stop विराम 

 

42. Juncture (noun) – Stage, crisis, interval, moment, point in time मोड़ / समय

 

43. Ease (verb) alleviate, relieve, comfort, mitigate, soothe; reduce, lessen कम करना 

 

44. Press ahead (phrasal verb) – to continue with something despite difficulties or opposition, आगे बढ़ना

 

45. Seek (verb) Try, attempt, endeavour, effort, strive for प्रयास करना

 

46. Stability (noun) – permanence, constancy, balance, solidity, firmness स्थिरता

 

47. Insulate (verb) to protect or shield from something harmful बचाव करना

 

48. Permeate (into) (verb) – spread throughout (something); pervade. व्याप्त होन
49. Monitor (verb) – observe, watch, keep an eye on निगरानी करना

 

50. Policy maker (noun) – a member of a government department, or other organization who is responsible for making new rules, laws, etc. नीति निर्माता 

 

51. Navigate (verb) – To make or find a course or way

 

52. Tumultuous (adjective) – Turbulent, confused, chaotic, disorderly, noisy, agitated उथल-पुथल / उतार-चढ़ाव भरे

 

53. Framework (noun) – system, organization, construction, तंत्र ढांचा 

 

54. Macroeconomic (adjective) – relating to the branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity