Nationalised Banks
Nationalized banks are the banks nationalized by the government in in 1969 and 1980. Altogether 20 banks were nationalized in …
Read MoreToo-big to fail problem
Too big to fail is a terminology indicating that some financial institutions like banks are having big size so that …
Read MoreFinancial Safety-net
Financial safety net is arrangements where the stress of a financial institution especially that of a private sector one is …
Read MoreMoral Hazard Problem
The moral hazard problem arises when a party has a tendency to embrace more risk knowing that the cost of …
Read MoreAsset Quality Review (AQR)
Asset Quality Review is the RBI’s inspection of the balance sheet of selected commercial banks to examine the health of …
Read MoreStress Testing
Stress testing is a practice widely adopted by central bankers to measure the capacity of individual institutions and the system …
Read MoreDebt Recovery Tribunals (DRTs)
Debt Recovery Tribunals were established to facilitate the debt recovery involving banks and other financial institutions with their customers. DRTs …
Read MoreAsset Reconstruction
Asset reconstruction is the activity of converting a bad or non-performing asset into performing asset. The process of asset reconstruction …
Read MorePrompt Corrective Action Framework
Prompt Corrective Action Plan are the RBI suggested measures that should be a taken by banks when certain financial indicators …
Read MoreAsset Reconstruction Companies (ARCs)
ARCs clean up the balance sheets of banks when the latter sells these to the ARCs. This helps banks …
Read More