Click to play videoLondon: The financial crisis has brought quite a reversal of roles to the world of banking, and as the dip in the markets continues, these could be here to stay for some time.
What were dismissed as Indian ways have now been adopted many times over by Britain.
"The government of UK has a higher percentage of shareholding in the Royal Bank of Scotland than what Government of India has in State Bank of India. Government of UK has got 60 per cent in RBS whereas Government of India has got only 15 per cent in State Bank of India. When you look at these things, the moral authority of the Western powers has been eroded. The moral authority of IMF and the World Bank which have been advocating deregulation in several sectors has been very grossly eroded,” says a London-based banker, Prabhakar Kaza.
At the least, a far closer regulation of banking appears to be here to stay
Senior Member of Labour party Tony Benn says, "We have democratic control of the army, democratic control of the police, democratic control of the fire brigade, democratic control of education, democratic control of health -- but we don't have democratic control of where our savings go."
But many in the world of finance say that post the crisis, the government intervention will not stand in the way of the free market principle.
“A lot of economists distinguish between handling of the market in crisis times and the long-term functioning of the market. I think there are many times in history, not just now, when the government has had to intervene in the full functioning of markets. In the long term that will not question the free market principle, though of course regulation and proper government control are important,” says Robert Kosowski of Imperial College Business School.
The credit crunch blew up into a crisis, and is now stretching out into a recession. It's brought nothing less than a revolution in the world of banking already, a little less so in India which was in this sort of space already.
But the changes the world over are dramatic, and some at least could be here to stay.
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