Moral Hazard Problem
The moral hazard problem arises when a party has a tendency to embrace more risk knowing that the cost 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 MoreSecuritization
Securitization is the process of pooling and repackaging of financial assets (like loans given) into marketable securities that can be …
Read MoreSARFAESI Act 2002
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 is a legislative provision that …
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 to …
Read MoreCentral Repository of Information on Large Credits (CRILC)
The RBI has set up a Central Repository of Information on Large Credits (CRILC) to collect, store, and disseminate credit …
Read MoreJoint Lenders Forum (JLF)
The Joint Lender’s Forum is a dedicated body of lender banks that is formed to speed up decisions when an …
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