{"id":31864,"date":"2018-10-29T11:35:58","date_gmt":"2018-10-29T06:05:58","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=31864"},"modified":"2018-10-29T11:35:58","modified_gmt":"2018-10-29T06:05:58","slug":"develop-a-u-s-style-online-platform-to-sell-bad-loans","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/develop-a-u-s-style-online-platform-to-sell-bad-loans\/","title":{"rendered":"\u2018Develop a U.S.-style online platform to sell bad loans\u2019\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/Economy\/develop-a-us-style-online-platform-to-sell-bad-loans\/article22486266.ece\"><b>\u2018Develop a U.S.-style online platform to sell bad loans\u2019<\/b><\/a><b>\u00a0<\/b><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Reserve Bank of India (RBI) has called for putting in place an online trading platform on the lines of the system in the U.S., to sell distressed assets to ensure more transparency and better price-discovery.<\/span><\/li>\n<\/ul>\n<p><b>Rationale behind this decision:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Such a platform could help create a thriving market for selling bad loans, which is plaguing the domestic banking system.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The banking system is saddled with more than Rs 10 trillion worth of bad loans as of September 2017.<\/span><\/li>\n<\/ul>\n<p><b>Steps taken by RBI:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">RBI since last June identified 40 largest stressed accounts and asked banks to refer them to various debt recovery tribunals.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In the financial stability report released recently, the RBI had warned that the bad loans could spike to 10.8% by March and 11.1% by September, 2018.<\/span><\/li>\n<\/ul>\n<p><b>Stressed assets:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stressed assets = NPAs + Restructured loans + Written off assets<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stressed assets are a powerful indicator of the health of the banking system. <\/span><\/li>\n<\/ul>\n<p><b>What is an NPA?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A loan whose interest and\/or installment of principal have remained \u2018overdue \u2018 (not paid) for a period of 90 days is considered as NPA.<\/span><\/li>\n<\/ul>\n<p><strong>Way ahead:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To create primary market liquidity to offload loans in the interest of asset reconstruction companies to have a secondary market for such assets.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Develop a U.S.-style online platform to sell bad loans\u2019\u00a0 Context: The Reserve Bank of India (RBI) has called for putting in place an online trading platform on the lines of the system in the U.S., to sell distressed assets to ensure more transparency and better price-discovery. Rationale behind this decision: Such a platform could help&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/develop-a-u-s-style-online-platform-to-sell-bad-loans\/\">Continue reading <span class=\"screen-reader-text\">\u2018Develop a U.S.-style online platform to sell bad loans\u2019\u00a0<\/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":[9],"tags":[],"class_list":["post-31864","post","type-post","status-publish","format-standard","hentry","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704929899},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31864","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=31864"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31864\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=31864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=31864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=31864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}