How to solve a twin balance sheet problem?

The Government used a two-pronged strategy to solve the twin balance sheet problem. They are recapitalisation of banks to increase the provisioning for Non-Performing Assets (NPA) and the introduction of the Insolvency and Bankruptcy Code (IBC) Bill. You can read about the Non Performing Assets (NPA) – Reasons, Classification, Impact, and Measures to Control NPA in the given link.

Further readings:

  1. RBI – Reserve Bank of India [UPSC Indian Economy Notes]
  2. Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19

Related Links

Big Bank Reform RSTV – Recent mega-merger of national banks

Insolvency And Bankruptcy Code (IBC) – IBC Amendment Bill 2021 [UPSC Notes GS III]

Previous Years Economics Mains Questions for UPSC General Studies Paper – 3

Download Indian Economy Notes For UPSC Examination

K.V. Kamath Panel Report – RBI Committee on Restructuring of Loans

Mission Indradhanush for PSBs – Revamping Public Sector Banks

UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure

Topic-Wise GS 3 Questions for UPSC Mains

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