Sovereign Wealth Fund’s (Swf) Increasing Role as Bank Capital Provider to Indian Banks

Abstract

In a globalised uni-polar world, the influence of Capital Providers is shifting from Private Actors to that of Public Actors. The role played by government owned investment funds or Sovereign Wealth Funds (SWF) is becoming pronounced and it has crossed $ 8.4 trillion recently in 2021. The paper examines and explains the issue of SWFs with specific reference to its role as a provider of Banking Capital to distressed banks in a stressful situation. The recent case of DBS India’s take over of Lakshmi Vilas Bank is also a case in point. A review of the context and an evaluation of the strategic risks involved with regard to governance, economy, regulation and geo-politics are also 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 Capital in particular.