#GS_3
#Banking #Bad_Bank #NPA
Amid of current global pandemic, every sector of Economy is suffer and the Banking is not an exception. NPAs are expected to shoot at 13.5% of the advances by Sep 2021. So, the idea of Bad Bank resurfacing to tackle the menace of NPA. The article discusses the possibility of Bad Bank and its benefits and challenges.
✅ What is a Bad Bank?
Technically, a bad bank is an asset reconstruction company (ARC) or an asset management company that takes over the bad loans of commercial banks, manages them and finally recovers the money over a period of time. The bad bank is not involved in lending and taking deposits, but helps commercial banks clean up their balance sheets and resolve bad loans.
✅ Important topics of article
Bad Bank
Asset Reconstruction Company (ARC)
Asset Quality Review (AQR)
NPA
Troubled Asset Relief Programme
@prep4upsc
#Banking #Bad_Bank #NPA
Amid of current global pandemic, every sector of Economy is suffer and the Banking is not an exception. NPAs are expected to shoot at 13.5% of the advances by Sep 2021. So, the idea of Bad Bank resurfacing to tackle the menace of NPA. The article discusses the possibility of Bad Bank and its benefits and challenges.
✅ What is a Bad Bank?
Technically, a bad bank is an asset reconstruction company (ARC) or an asset management company that takes over the bad loans of commercial banks, manages them and finally recovers the money over a period of time. The bad bank is not involved in lending and taking deposits, but helps commercial banks clean up their balance sheets and resolve bad loans.
✅ Important topics of article
Bad Bank
Asset Reconstruction Company (ARC)
Asset Quality Review (AQR)
NPA
Troubled Asset Relief Programme
@prep4upsc