The Indian business community has demanded reduction in the CRR (cash reserve ratio) and the repo rate to insulate the country from the global financial crisis. The bankers hoped that RBI can cut the CRR in the next monitory policy review. The apex bank would take various steps to address the liquidity problem in the market. 

The Reserve Bank of India (RBI) has announced a 150 basis points (bps) cut in the Cash Reserve Ratio (CRR) to 7.5% with effect from tomorrow, instead of to 8.5 percent as previously announced.

According to market experts, the CRR cut is definitely a positive move, which is going to soothe some liquidity fears. The cut is expected to inject liquidity into the system to the tune of Rs 60,000 crore.

Washington - The US government plans to take ownership stakes in banks in a fresh bid to restore confidence in financial markets, Treasury Secretary Henry Paulson said Friday.

The dramatic step comes as part of the 700-billion-dollar rescue package passed by Congress last week that gave the government broad new powers to buy up soured mortgage assets from troubled banks in the United States.

Brussels - The European Union on Friday approved a Danish plan for restoring confidence to the country's financial sector, saying that it was the "most appropriate" response.

"The scheme would provide liquidity facilities for banks operating in Denmark and protect depositors and ordinary creditors in case of insolvency," the EU's executive body, the European Commission, said in a statement.

New York - Wells Fargo won the takover battle for the ailing US banking giant Wachovia on Friday, with rival bidder Citigroup giving up its claim.

However, Citigroup said it would pursue its legal claim for 60 billion dollars in punitive and compensatory damages which it had launched against Wachovia after it made a deal with Wells Fargo despite an earlier sale agreement with Citigroup.

The acquisition is set to move Wells Fargo to the top of the US private banking business sector.

UK government has announced that it will pump US$ 87 billion pounds (around US$ 50 billion pounds) in an extraordinary step to prevent a fall down of the U.K. banking system.