Why bank mergers are good for reducing NPA?

The tide of bank non-performing assets (NPAs) seems to be finally ebbing, with net reported NPAs coming below 2%. Measures ranging from asset quality review to the introduction of a modern bankruptcy code were implemented to fight the crisis. But what actually led to the reversal of the NPA wave?

The mergers were found to have resulted in a near 10% reduction in NPAs of weak merging banks, and almost all the decline is due to a decrease in strategic defaults.

Read more at:
https://economictimes.indiatimes.com/opinion/et-commentary/why-bank-mergers-are-good-for-reducing-npas/articleshow/92732863.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Related

Leave a Reply Cancel reply

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.