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Bad Bank: Good idea, but timing and execution being questioned

Without beefing up the regulatory framework, moral hazard may outweigh advantages, say experts

Topics
bad bank | public sector banks | ARC

Hamsini Karthik  |  Mumbai 



banks
While recognition of stress is reasonably taken care of and resolution partially strengthened (through Insolvency and Bankruptcy Code), recapitalisation and reforms remain a doubtful patch.

The idea of setting up a partly funded by the government, and investment trusts is gaining currency with a fortnight to go for the Union Budget.

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First Published: Fri, January 15 2021. 20:48 IST

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