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Reserve Bank of India governor D Subbarao today warned against "casino banking" that has over-financialised the real economy, and called for inclusive growth to quell the growing disenchantment of the public.
"A growth process that increases inequity lacks durability, and indeed even legitimacy, eventually threatening the economic and social stability. Evidence in support of this is overwhelming--the `Occupy Movement' of the past year being just the latest manifestation of the discontent associated with inequitable growth," Subbarao said at a seminar.
Inaugurating two-day international conference on 'Leveraging cooperative advantage', organised by the RBI-run College of Agricultural Banking as a part of International Year of Cooperatives of the UN in Pune, Subbarao said, "The recent financial crisis has taught us some very important lessons.
"The general disenchantment with 'casino banking' in certain developed economies underscored the dangers of over-financialisation of the real economy," Subbarao said.
Casino banking is the practice whereby a commercial bank engages in unduly speculative or risky financial activities with the aim of achieving high profits.
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