,India

Morgan Stanley gives up banking license in India

New regulations forces hand of sixth largest US bank.

Morgan Stanley has surrendered its banking license in India. Sources said the decision was caused by a reassessment of business strategy in the face of new regulations and stricter capital rules.

Morgan Stanley received the license to set up a bank in March 2012. A banking license lapses if not used for a year.

A banking license would have given Morgan Stanley access to cheaper finance and a foothold in the Indian money and foreign exchange markets.

Because of a changed environment, the firm is now planning to let the license lapse since it does not want to tie-up capital and other resources on account of a review of its strategy.

Morgan Stanley, will, however, continue to operate its investment bank in India and stay registered as a non-banking finance company with the Reserve Bank of India.

Some 400 people are employed in Morgan Stanley India across businesses such as capital markets, equity and fixed-income sales and trading, research, asset management and private-wealth management.

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Banks should have enough buffers and find climate transition risks manageable.
The products are now available at Eccellente by HAO Market in Singapore.
Institutional clients may accelerate time-to-market financial applications.
This was thanks to a rise in loans made to the service sector during the period.
Discussions between the two banks are at the preliminary stage.
But it reported weaker quarterly performance, largely due to its $309.8m Q3 expense.
Uncertainty over Omicron's impact may drive this slowdown.
Only 2 in 10 Singapore micro-multinationals think banks offer value for money.
The Internet boom has pushed 9 out of 10 digital merchants to accept digital payments.
It’s not as urgent as other markets with credit under-penetration, says TMRW Digital Group CCO.
The move is part of the BSP’s Digital Payments Transformation Roadmap.
Internet economy in SEA has propelled digital payments further.
The market is expected to top $83.2b in four years’ time.
The 3.26% interest rate average is its highest since November 2018.