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
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