Some key quotes from the article. Probably I need to research on where MAS stands in our monetary policy. From what I see on the surface so far, they are doing a pretty decent job.

“Indian banks are not levered like American banks. Capital ratios are 12 and 13 percent, instead of 7 or 8 percent. All those exotic structures like C.D.O. and securitizations are a very tiny part of our banking system. So a lot of the temptations didn’t exist.”

“A lot of Indians, when you push them, will say that if you spend more than you earn you will get in trouble. Americans spent more than they earned.”

“Savings are important. Joint families exist. When one son moves out, the family helps them. So you don’t borrow so much from the bank.”

Seventy percent of the banking system in India is nationalized, so a strong regulator is critical, since any banking scandal amounts to a national political scandal as well.