Dear presentor, I have seen many of your videos for my upcoming prelims preparation, starting with economic survey and since than I got addicted to your video series as, the way you explain things with the kind of approach and simplification it is just wonderful and absorbing for the mind, there are very few like you on TH-cam who keep the interest of the viewer grabbed till the end. Thank you for all the videos.
Why can't the bank do these all things on there own. Isn't it the banks duty to give loan responsively and not blindly, and recover it from the borrower. Why should govt pay for banks mistakes.
Dear Student, 1. Dr Rajan echoes the same point as yours. So you are absolutely right. In fact your point has been raised by several economists as strong criticism against Bad Banks. 2. The treatment of any sickness or ailment depends not only upon the symptoms but also the “CAUSE” of the disease. Here, the cause of the disease (NPA) is not only economic but “POLITICAL”. It is infact a deadly mix of bad politics and bad economics. We have discussed some of the structural details regarding that in Part-5, Volume Economic Survey 2020-21. Please refer to it (th-cam.com/video/O08VcyTlMVQ/w-d-xo.html). Because of those reasons and also the fact Bad banks deals with two things - Resolution of stressed assets + Recapitalization framework, which an already dying bank can’t do on its own. Bad Bank will be followed by administrative changes in banking structure. Infact, it is being done. All these things are not possible by asking already dying banks to take care of their health. Also, doesn’t matter who is solving the NPA crisis. Ultimately it will be public money only which would be sacrificed to wash of the sins committed by someone else. (Note: This is not an exhaustive answer as your point demands a separate politico-economic discussion. It is a hugely debated issue these days. But, above points would help you to get some clarity as to why Bad Banks have been conceptualized. It is out of compulsions.) Hope it helps.
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Dear presentor,
I have seen many of your videos for my upcoming prelims preparation, starting with economic survey and since than I got addicted to your video series as, the way you explain things with the kind of approach and simplification it is just wonderful and absorbing for the mind, there are very few like you on TH-cam who keep the interest of the viewer grabbed till the end. Thank you for all the videos.
Iam stand up claps for the explanation of bad bank 👏👏👏👏
Your explanation is very impressive 👍👌
Concept clear👍🏻
Thank you Sir
🙏🙏
Very interesting lecture Sir.
Good explanation sir
Good explanation sir, thank you
Great Sir💐🇮🇳👍😊🙏
Economics make me cry.
Why would I buy bad loans from the bad bank??
Also, in all cases....the M M or the borrowers won't be paying anything??
8:00 why one institute cannot give solutions to NPA's and restructured loans? What is the problem in that according to the experts?
Thank you sir
Thnkuuu sir
Who is here after reading newspaper??
Just like Goldman Sachs..🤔
1:10 Two famous M's are Harshad Mehta and Vijay Mallya equals to Harshad Mallya😆
I think he is talking about Vijay Mallya and Nirav Modi
@@Sanaaa13 ye bhi theek hai😅
Bro Harshad Mehta was not fugitive 🔥
its modi and maliya
Why can't the bank do these all things on there own. Isn't it the banks duty to give loan responsively and not blindly, and recover it from the borrower. Why should govt pay for banks mistakes.
Dear Student,
1. Dr Rajan echoes the same point as yours. So you are absolutely right. In fact your point has been raised by several economists as strong criticism against Bad Banks.
2. The treatment of any sickness or ailment depends not only upon the symptoms but also the “CAUSE” of the disease. Here, the cause of the disease (NPA) is not only economic but “POLITICAL”. It is infact a deadly mix of bad politics and bad economics. We have discussed some of the structural details regarding that in Part-5, Volume Economic Survey 2020-21. Please refer to it (th-cam.com/video/O08VcyTlMVQ/w-d-xo.html). Because of those reasons and also the fact Bad banks deals with two things - Resolution of stressed assets + Recapitalization framework, which an already dying bank can’t do on its own. Bad Bank will be followed by administrative changes in banking structure. Infact, it is being done. All these things are not possible by asking already dying banks to take care of their health. Also, doesn’t matter who is solving the NPA crisis. Ultimately it will be public money only which would be sacrificed to wash of the sins committed by someone else.
(Note: This is not an exhaustive answer as your point demands a separate politico-economic discussion. It is a hugely debated issue these days. But, above points would help you to get some clarity as to why Bad Banks have been conceptualized. It is out of compulsions.)
Hope it helps.