The Reserve Bank of India made a strong case for setting up a.....in India to address the twin balance sheet problem of the banking sector and the corporate sector.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Reserve Bank of India made a strong case for setting up a____in India to address the twin balance sheet problem of the banking sector and the corporate sector.

A	Public Credit Registration
B	Public Credit Registry
C	Public Credit Review
D	Public Credit Reminder

Explanation:

Detailed explanation-1: -The twin balance sheet problem in India deals with the balance sheets of Indian companies and Indian Banks. It’s basically a scenario when an overleveraged company is under huge debts and is unable to repay the loan’s interest amount.

Detailed explanation-2: -Answer: The “Twin Balance Sheet Problem” is a situation in which corporations are overleveraged on the one hand, and banks are saddled with bad loans on the other. Answer: The twin balance sheet problem is referred to as TBS in banking.

Detailed explanation-3: -The Twin Balance Sheet problem refers to the situation of overleveraged companies on one hand and bad-loan-encumbered banks on the other.

Detailed explanation-4: -Origin of Twin Balance Sheet Problem in India Origin of TBS problem can be traced to the 2000s when the economy was on an upward trajectory. During that time, the investment-GDP ratio had soared by 11% reaching over 38% in 2007-08. Thus non-food bank credit doubled and capital inflows in 2007-08 reached 9% of GDP.

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