Q.3) If we draw parallels with the aggressive bank lending to the infrastructure sector in the aftermath of 2008 global financial crisis, what are the risks involved in the aggressive bank lending to MSMEs at the behest of government against the backdrop of pandemic? (10 Marks)

“Mentor’s Comments” https://www.livemint.com/opinion/online-views/heed-the-not-so-obvious-lesson-of-the-2008-global-financial-crisis-11625671803938.html In the intro, mention the parallels in the action of central bank after 2008 crisis and now. In the body, discuss the various government initiatives and schemes such as Emergency Credit Line Guarantee Scheme (ECLGS),   to increase to lending to the MSME sector to protect from the adverse impact of pandemic. In the … Continue reading Q.3) If we draw parallels with the aggressive bank lending to the infrastructure sector in the aftermath of 2008 global financial crisis, what are the risks involved in the aggressive bank lending to MSMEs at the behest of government against the backdrop of pandemic? (10 Marks)