Current Affairs For IAS Exam - 08 September 2015

Current Affairs for IAS Exams – 08 September 2015

:: National ::

Moody’s raises a valid question

Global rating agency Moody’s has raised a few questions on the Reserve Bank of India (RBI) decision to award the domestic systemically important banks (D-SIBs) status to only two banking entities.
The agency has said the central bank’s approach on D-SIBs or ‘too-big-to fail’ entities is ‘less stringent’ than other jurisdictions, hence credit negative.
Last week, the RBI named the country’s largest lender, State Bank of India (RBI) and ICICI Bank as D-SIBs.
This surprised some banking industry observers since the central bank, in its July 2014 framework for D-SIBs, had said it expects that about 4-6 banks may be designated as D-SIBs under various buckets.
This was, however, based on the 31 March 2013 numbers. Moreover, SBI and ICICI Bank were sure picks as they are the biggest banks in the industry.
In simple terms, D-SIBs are those interconnected entities, whose failure can impact the whole of the financial system and create instability.
The criterion to decide the primary sample of D-SIBs was done by selecting banks with asset size beyond 2 percent of GDP.
Going by this methodology, at least 13 banks fall under this category.
These include Bank of Baroda, Bank of India, PNB and HDFC. To be sure, the 2 percent cut-off is used to select the primary sample.
The RBI would further scrutinise this list of banks based on interconnectedness, lack of readily available substitutes or financial institution infrastructure and complexity.
The RBI can exercise its discretion on the final list and hence the central bank can justify the selection of only two banks from about 27 public sector banks, 19 private sector banks and 43 foreign banks. But, according to Moody’s, the Indian central bank has taken a ‘less stringent approach’ in categorising the D-SIB category.

World Hindi Conference in Bhopal (Register and Login to read Full News..)

:: International ::

North-South Korea agree to family reunions

North and South Korea have agreed to host family reunions for families separated by the Korean War, according to media reports.
The reunions for 100 separated families will be held Oct. 20-26 at Mount Kumgang, a resort on the North's east coast., South Korea's Yonhap news agency reported Tuesday.
They will be the first reunions since February 2014 and only the second in the past five years.
The BBC reported that the talks were being held by Red Cross officials from both sides.
The two countries remain technically at war as the Korean War only ended in an armistice.
The discussions come after tense weeks on the Korean peninsula, which included exchanges of fire at the border and the evacuation of thousands of South Koreans from the border region.
Tensions began when a border landmine injured two South Korean soldiers. South Korea responded by broadcasting propaganda messages into the North.
The two sides reached an agreement to defuse the situation after marathon talks, the BBC reported.

Shinzo Abe Re-elected as Leader of Ruling Party

Japan’s governing Liberal Democratic Party re-elected Prime Minister Shinzo Abe as its president on Tuesday after his potential rival, Seiko Noda, failed to achieve enough support from lawmakers to contest the post. Mr. Abe will remain party leader for a second three-year term.
Mr. Abe also pledged to push forward with his plan to permit Japan’s military to be dispatched to conflicts abroad, which has been banned for 70 years under the pacifist Constitution.
Legislation allowing that change is expected to be enacted next week, despite rare large-scale protests across the country.

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:: Sports ::

Anirban Lahiri becomes first Indian to qualify for President’s Cup team

Anirban Lahiri added another feather to his cap by becoming the first Indian to qualify for the prestigious President’s Cup.
Lahiri, World No.40, came through as one of the automatic qualifications for the International Team, which will take on United States in the biennial Presidents Cup in Korea.
In the International Team standings, the deadline for which ended on Monday, Lahiri finished seventh to make the team.
Also becoming the first from his country to make the team was Thailand’s Thongchai Jaidee, who was ninth
At one stage, Lahiri had fell out of the Top-10, but his fifth place finish at the PGA Championships hauled him back into the zone.