, Columnist
India Needs a Mega-Bailout. Here’s How
The funding woes of shadow banks have kept worsening. This is one possible blueprint to restore confidence.
Much construction debt is on shaky ground.
Photographer: Kuni Takahashi/Bloomberg
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Another shadow bank in India has missed a bond payment. That's a reminder to the new government that a mega-bailout of the country's distressed financial industry is now unavoidable.
Ever since the collapse of infrastructure financier-operator IL&FS Group in September, an event I termed India’s mini-Lehman moment, the funding woes of the country’s nonbank lenders – those that operate without state-guaranteed deposits or access to central-bank liquidity – have kept worsening.