Change in financial order - US Financial crisis

With the change in the world order that we have witnessed, now is the time to leave the illusionary financial order and change the narrative. Within 48 hours the collapse of two major banks inthe United States of America and a loss of the amount more than $100 billion. This is a sharp edge on the economic strength of the USA. The jitter effect of the world and the US tech companies. The illusion of the US is the strongest economy is faded by the very fact that the SVB invested their money in the bonds of the Federal Government which was the safest bet. There is more to it as SVB has its presence in the UK.

As per the latest report, Global Financial stocks have lost $465 billion. The global impact of SVB is till on Japan. Soon after this another collapse of another bank whose major investments were incryptocurrency came to a dead end. Signature Bank came to its end after regulators had to intervene. These deadly failures represent the major financial history of America.

A look for the likely reasons for this failure.

• Where President Joe Biden has promised money to the customers, he also mentioned about lack of payment of corporate taxes to the government

• Lack of Good Governance in the Banking System

• Lack of Accounting and transparent book of accounts of the Giant companies.

• Bad Debts

There could be more reasons for this financial crisis which has jolted the global industry, yet India will not be affected much due to their reserves and dependency on domestic capital. Most importantly the regulatory forces of the bank are resilient and robust to keep things in order.The start-ups might be impacted adversely if they are funded by external investors. What might also affect the FDI in various industrial units. Beyond this, the good governance and Make in India initiative have already started reducing the dependency on foreign products. The only thing that we must be cautious about is the foreign investors in our manufacturing units.

What is the solution for sustainable growth?

Why all of a sudden such a financial crisis occurs? Does this happen overnight? The answer is simply NO Recently even Credit Suisse found their reporting procedures at a fault. Governance, regulatory forces, and ethics play a pivotal role in where money is involved. The Change in Financial order is inevitable as Rupee is getting global and is being used by many countries for business and trade. So, as a Proud Indian, even if I say it's not happening today, be aware of the change in Financial Order along with world order. A fewcountries which have agreed with the Indian currency are Russia, Sri Lanka, Singapore, Israel, Germany and many more will be on the list in near future. The Indian Rupee getting Global is a clear-cut indication of Change in Financial Order.

The New Mechanism of the Vostro Account is getting implemented for countries to keep their money in the Indian Currency. India is taking a leap in leading the world economically along with their countries for global good and that's where the New Financial Order will be seen emerging after these major collapses of American Banks.

The author is an Ex Army Officer, columnist, and economist. She is associated with BRICS RESEARCH CONFERENCE 2.0.