{"id":28830,"date":"2018-10-24T15:07:55","date_gmt":"2018-10-24T09:37:55","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=28830"},"modified":"2018-10-24T15:07:55","modified_gmt":"2018-10-24T09:37:55","slug":"cleaning-up-balance-sheets","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/cleaning-up-balance-sheets\/","title":{"rendered":"Cleaning up balance sheets"},"content":{"rendered":"<p><strong>Cleaning up balance sheets<\/strong><\/p>\n<p><strong><u>News:<\/u><\/strong><\/p>\n<p>1-The government has revived the idea of setting up an asset reconstruction or asset management company, a sort of \u2018bad bank\u2019 first mooted by Chief Economic Adviser Arvind Subramanian last year.<\/p>\n<p><strong><u>Important facts:<\/u><\/strong><\/p>\n<p><strong><u>2-Bad Bank<\/u><\/strong><\/p>\n<ul>\n<li>Bad bank purchase those assets from public sectors bank that has no salvage value<\/li>\n<li>they help to extract any residual value from those assets.<\/li>\n<li>this also helps to clean up bank balance sheet. Thus bank focus on their core operations of providing credit and enhance economic activity<\/li>\n<li>this also protect the bank from danger of insolvency<\/li>\n<\/ul>\n<ol start=\"3\">\n<li>The CEA had proposed a significant part of the bad bank funding to come from the Reserve Bank of India.<\/li>\n<\/ol>\n<p>4.The chances of private participation are low unless investors are allowed a major say in the governance of the new entity.<\/p>\n<ol start=\"5\">\n<li>Critics consider establishment of bad bank as an indirect bailout of Public sector banks.<\/li>\n<li>However, it will not solve the problem of corporate governance issues that led to NPA problem.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Cleaning up balance sheets News: 1-The government has revived the idea of setting up an asset reconstruction or asset management company, a sort of \u2018bad bank\u2019 first mooted by Chief Economic Adviser Arvind Subramanian last year. Important facts: 2-Bad Bank Bad bank purchase those assets from public sectors bank that has no salvage value they&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/cleaning-up-balance-sheets\/\">Continue reading <span class=\"screen-reader-text\">Cleaning up balance sheets<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-28830","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704750933},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=28830"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28830\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=28830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=28830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=28830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}