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 
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