Lesson from China on bad banks

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