Indian Central Bank Encouraging Banks to Improve Credit Checks

India’s central bank is considering a proposal that would limit the number of participants in a single lenders’ consortium, in a bid to encourage banks to carry out better independent credit checks and do more to chase rogue borrowers.

Reserve Bank of India Deputy Governor R. Gandhi told a conference on Tuesday that banks with small exposures assume less responsibility when loans sour – a major problem for India, as it seeks to tackle $50 billion of bad debt that’s slowing credit growth and hampering a broader economic recovery.

Banks, he said, need to act urgently to reduce stressed assets on their balance sheets.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza