Standard Chartered CEO optimistic on India, global economy, and banking reforms
Winters commended the efforts of government and business leaders in India for their contributions to the G20 discussions, stating, "Everything I have seen from government and business leaders in India for G20 has been great." He noted that as the Co-Chair of the B20, he had the privilege to make recommendations on marshaling resources for the developing world.
Bill Winters, the CEO of Standard Chartered, in an exclusive interview with CNBC-TV18, shared his insights on various global economic issues, India's role in the G20, climate financing, and the state of the banking sector. Winters expressed confidence in India's economic potential, the need for capital in Multilateral Development Banks (MDBs), and the importance of climate financing.
Positive Outlook for India's Role in G20:
Winters commended the efforts of government and business leaders in India for their contributions to the G20 discussions, stating, "Everything I have seen from government and business leaders in India for G20 has been great." He noted that as the Co-Chair of the B20, he had the privilege to make recommendations on marshaling resources for the developing world.
Addressing Climate Change: Winters stressed the importance of the World Bank's involvement in developing countries' fight against climate change. He emphasised the need for increased capital in MDBs, stating, "How do we get more capital into MDBs is the question which we have to answer."
Winters also highlighted the importance of public sector funding to attract private sector investment, suggesting that "$1 of World Bank funding should be crowding in $15 of private sector funding."
Global Economic Overview: While acknowledging that the global economy is in good shape, Winters pointed out the existence of economic pressures, including high inflation driven by supply chain disruptions. He remained optimistic overall about the global economy.
China's Economic Challenges: Winters commented on China's sluggish economic growth, attributing it to issues like supply chain disruptions and real estate market overhang. He commended China's efforts to manage these challenges without destabilising the financial sector and expressed confidence in Standard Chartered's limited exposure to China.
India's Attractiveness as a Market: Winters credited the reforms of successive Indian governments for making India an attractive market. He highlighted Standard Chartered's success with its in-house SME platform in Bangalore and plans to expand it to different markets. He also praised India's tech competence and entrepreneurial spirit.
Banking Reforms and Liquidity Management: Regarding the recent regional banking crisis in the West, Winters noted that liquidity mismatch was a major factor. He highlighted the decisive actions taken by the US government to address the issue. However, he also expressed uncertainty about what regulators should do to prevent similar situations, particularly in light of potential increases in regulatory requirements.
Global Banking Reforms: Winters discussed the US Federal Reserve's indications of a significant increase in capital requirements for large banks as part of new global banking reforms. He noted that some banks had strongly resisted these changes. He also highlighted the strong capitalization and liquidity of European and Asian banks compared to the issues seen in the crisis at Standard Chartered's peer, Credit Suisse.
Watch video for full interview
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