What is TBS in banking?

TBS in banking refers to the twin banking sheet problem.This problem arises due to the existence of non performing assets and corporates having heavy debts. The Government tried to tackle this problem through 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