Relevance: There is a debate going on in India to open bad bank for solving the NPA problem with banks. Synopsis – To address stressed assets [nonperforming loans (NPLs), a bad bank must have a fixed term and a narrow mandate with clear aims. What are bad banks? A ‘bad bank’ is designated financial institutions that purchase and resolve nonperforming assets (NPAs) from banks and help… Continue reading Lesson from China on bad banks
Tag: Asset Reconstruction Company
Asset Reconstruction Company – Concepts Simplified | Prelims Capsules 2021
The concept of Asset Reconstruction Company is very important for UPSC exam due to the proposal of setting up bad banks. This proposal was put forward by the government in the recent Union Budget 2021-22. Contents0.1 What is an Asset Reconstruction Company (ARC)?0.2 Origin of Asset Reconstruction Companies (ARCs) in India0.3 Functions of an Asset… Continue reading Asset Reconstruction Company – Concepts Simplified | Prelims Capsules 2021
