Question
The "Twin Balance Sheet Problem" in India refers to the
stress on which two sectors?Solution
The "Twin Balance Sheet Problem" was a significant issue faced by the Indian economy. It refers to the stressed balance sheets of both the banking sector and the corporate (mainly, real estate) sector. In this situation, many Indian banks had a high level of non-performing assets (bad loans), which impaired their financial health. Simultaneously, some real estate companies were burdened with high levels of debt and unsold inventory, leading to financial stress. The interlinkage of these stressed balance sheets created a challenging situation for the overall economy, affecting credit availability and investment.
As per RBI's discussion paper on ECL model for banks what is the recommended treatment for the transitional adjustment amount in relation to the adoptio...
Which of the following risk is made up of transaction risk, default risk and portfolio risk?
With reference to the Account Aggregator (AA), consider the following statements:
1)Â Â Â It is a Non-Banking Financial Company.
2)ďż˝...
A trader carries an average inventory of Rs. 40,000. His inventory turnover ratio is 8 times. If he sells goods at a profit of 20% on Revenue from oper...
The term “financial creditor” in the Insolvency and Bankruptcy Code (IBC) in India means?
Name the risk which arises when bank’s image is not good and that leads to public’s loss of confidence in the bank.
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Which of the following are involved in the identification of risks?
Consider the following statements regarding India’s GDP data:
1. The National Statistical Office (NSO) is mandated to prepare national accounts...
Which of the following is true about Duration of a bond?