Less Discussed Aspects of DBS India- LVB Merger

Abstract

In a globalised uni-polar world, the providers of finance capital is slowly shifting from the influence of Private Actors to that of Public Actors. The role played by government owned investment funds or Sovereign Wealth Funds (SWF) is becoming pronounced and has crossed $ 8.4 trillion recently. The paper examines and explains the issue of SWFs with specific reference to its role in providing capital to distressed banks. The recent case of DBS India’s takeover of Lakshmi Vilas Bank is also discussed with relevant India material as a context. A review of the context and an evaluation of the strategic risks involved with regard to governance, economy, regulation and geo-politics are flagged with clear evidenced perspectives. The issues raised in the paper has high topical relevance to the world of Money and Finance in general and Banking regulators in particular.