Page 81 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd

Annual Issue, 10
Edition July 2022
BFSI Chronicle, 2
BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
nd
nd
th th
GEOPOLITICAL Introduction
Seldom do we think that an event that might
be happening thousands of miles away from
EFFECTS us maybe in a different continent, country,
time zone might affect our personal savings
and investment kitty. But with growing
ON interlinkages between the financial systems
and cross border network of counterparties,
PENSIONS such ramifications of the unforeseen events
irrespective catastrophic or not certainly has an
impact on the individual’s wealth with varied
magnitude.
Geopolitical scenario since 2020
In the recent past we have witnessed
unprecedented events like COVID 19 wherein
unanticipated countrywide lockdowns across
the geographies have stalled not just the
international travel and economy but have even
hampered the day to day life of the individuals.
Many countries adopted vaccine diplomacy not
only to strengthen the relationships with other
countries but also as a soft power international
relation tool.
Geopolitical conflicts in various regions have
led to considerable fluctuations in crude oil
prices, disruption in global supply chains and
trade imbalances forcing countries to adopt an
inward-looking policy for self-sustenance in
expectation of a resilient economic growth.
Macro variables: monetary and fiscal policy
Fiscal and monetary policies of the countries
and their central banks need to be synchronized
and work in tandem to safeguard the economy
from adverse shocks. The complementary
nature of both the policies directly impacts the
financial stability of the system as the demand
side interventions can help in addressing the
Shri Mohit Yadav
supply side shocks to a certain extent. It also
Assistant General Manager, influences the risk appetite of the individuals
Pension Fund Regulatory and which sequentially impacts the returns on the
Development Authority

The Institute Of Cost Accountants Of India
The Institute Of Cost Accountants Of India
81