Q.3) What is a bad bank? Critically examine their utility in dealing with the challenge of non-performing assets faced by the banks and suggest the ways to make bad banks effective. (10 Marks)

“Mentor’s Comments” https://indianexpress.com/article/opinion/columns/india-bad-bank-national-asset-reconstruction-company-china-7374608/ In the intro, briefly explain the bad bank. In the body, discuss the advantages such as freeing up of assets and locked capital, cleaning the balance sheets of banks, the quickening of the resolution process etc. In next part, mention the issues like lack of capital, lack of interest by private investors … Continue reading Q.3) What is a bad bank? Critically examine their utility in dealing with the challenge of non-performing assets faced by the banks and suggest the ways to make bad banks effective. (10 Marks)