ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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How Should Banks Estimate Their Expected Loan Loss Provisions to Survive in Difficult Times?

This article explains how banks can use their forward-looking internal credit risk estimates and apply on loan cash fl ows over different time horizons and assess the impact on loss provisions. Such an estimate based on longer historical data will enable the banks to better foresee the uncertainty pertaining to repayment status of their loans and make loss provisions in a more proactive manner.

Critical Importance of Cooperative Federalism

In addition to the three-pillar framework suggested by the Fifteenth Finance Commission, we suggest four constituents, namely the finance commission, NITI Aayog, goods and services tax, and de facto decentralisation, which will help strengthen the “cooperative” element—a key factor for Indian federation to work effectively. Further, the article focuses on finance commissions empowering the local governments and, in particular, assesses the Fifteenth Finance Commission’s thrust to empower the local bodies.

COVID-19 and Insolvency Law

The World Development Report (WDR), 2022 highlights the relevance of adopting effective strategies for maintaining the financial stability of a nation in the wake of COVID-19. The pandemic resulted in the shrinking of the world gross domestic product by 3% and increased global poverty after a long...

Durable Growth Revival

The recent growth recovery has been uneven as is visible across different sectors of the economy and different segments of the population. This unevenness is hurting the consumption of lower-income households and private investments, which are vital for sustained or durable growth.

The Sraffa Canon

A Reflection on Sraffa’s Revolution in Economic Theory edited by Ajit Sinha, Palgrave Macmillan, 2021; pp xxv+ 601, ₹ 14,821 (hardcover).

What Must be the Priority of the Budget?

Improving agriculture incomes and boosting consumer demand must be the top priorities.

Hub-and-spoke Cartels

The current approach adopted by the judicial bodies in dealing with the hub-and-spoke conspiracies is evaluated and compared with the development of the jurisprudence in foreign jurisdictions. The inhibitions faced by the judicial bodies due to a lack of maturity of the laws are also looked at.

Social Good and Business Interventions

Inclusive Business Models: Transforming Lives and Creating Livelihoods by Sourav Mukherjee, New Delhi: Cambridge University Press, 2021; pp 250, ` 695.

Development Banks and the Changing Contour of Industrial Credit in India

The gradual evolution of industrial credit in India in the last three decades is examined against the backdrop of significant structural change in ownership and regulation in the Indian banking sector. The impact of institutional changes in the Indian banking sector during the post-liberalisation phase, especially in the form of the gradual winding up of development financial institutions, on the institutional credit flow to industry is analysed. There is a significant impact of the changing ownership structure of banks on the sectoral allocation of credit. Based on the analysis of sectoral credit flow from the commercial banks and specialised term-lending institutions in India over the last three decades, the need for creating a professional talent pool within the commercial banks for term-lending as well as lending to small entrepreneurs is underscored.

What Ails Direct-selling Businesses in India?

The law pertaining to direct-selling businesses prevailing in India is in dire need of transformation. A critical examination of the definitions (related to direct-selling), the primary cause of concern, followed by the inept Direct Selling Guidelines issued in 2016 by the Ministry of Consumer Affairs is undertaken here. Focusing on the regulatory aspect of this business model, a case is made for a specialised regulator for direct-selling entities.

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