This paper overviews the issues of non-performing assets held by banks; slowdown in credit growth; corporate debt; absence of modern risk-based approaches to management and regulation; the poor record of banks in transmitting monetary policy impulses; and their contributions to financial inclusion. It attempts to show that reality is more nuanced than the standard perspective that blames public ownership or a failure to modernise for the stresses public sector banks face.
EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.
Comments
EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.