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Delayed Bank Recap Key To India’s Pre-Covid Slowdown, Shows New Research
A balance sheet cleanup should be accompanied by policies leading to recapitalisation, says new study co-authored by the CEA.
Financial sector crises leave a long tail. That much has now been long proven. As such when India went into a clean-up of bank balance sheets, it was anticipated that the impact would play out over an extended time period, in many ways.But one assumption made at the time of the clean-up, which since proved to be incorrect, has worsened its impact. It was thought that as a truer picture of bank balance sheets emerges, these lenders wi...
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