Higher non-performing assets hinder monetary policy transmission: RBI paper

Higher non-performing assets hinder monetary policy transmission: RBI paper

In an environment of sustained asset quality stress impacting the capacity of banks to lend, the government has infused capital in public sector banks to improve their capital position and facilitate credit extension, it noted. "Though these measures have helped some public sector banks to come out of regulator's critical purview, the bank credit grew by only 13.4 per cent in 2018-19 and 6.1 per cent in 2019-20", the paper said. It finds evidence of existence of bank capital channel of monetary policy transmission for India.

Read more atĀ 
The New Indian Express

Timeline

.......... .......... .......... .......... ..........
  • .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
.......... .......... .......... .......... ..........
  • .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
  • .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
.......... .......... .......... .......... ..........
  • .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........

In-depth coverage

Read more top Business stories on Crisp