Not a good idea

A bad bank will do nothing to solve the problems

A “bad bank” is reportedly being planned to deal with the fallout of the non-performing assets crisis, which has constrained commercial bank credit growth for years. It is understandable why this idea is returning to the forefront of policy now — reviving credit growth is a necessary condition for emerging from the sudden sharp stop that the economy has been subjected to as a consequence of the pandemic and efforts to contain it. Yet the arguments for a bad bank are no more palatable or powerful now than they were the last few times it was the flavour of the