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Showing posts with the label bad bank definition

What is Bad Bank ? Bad Bank Meaning ? Bad Bank Definition ?

  Bad Bank (In English): (1.) What is Bad Bank ? Answer:- The Bad Bank is also a kind of Bank which is set up to buy bad loans or stressed assets or non performing assets(npa) or other illiquid holdings of another banks or nbfc or financial institutions at market price.  Thus the original financial institutions may clear its balance sheet and its npa or stressed assets will be lower down. Bad Bank is normally set up during financial crisis. There are lots of complexity in setting up of bad bank. The economic experts are divided on bad bank ideas. Some economists are in favour of bad Bank and some are against of bad banks. Now a days bad bank idea is matter of discussion in Indian banking system due to very high increment of npa ratio as per the rbi report. There are a lots of things like management, funding, share holders and organization structure of bad bank. Let's see what outcome from regulator rbi or indian government before announcement of union budget 2021. Perhaps indian go