Market Concentration, Diversification, And Financial Misery Within The Indonesian Banking System
The company financed and the promoters/ directors of such corporations shouldn’t be defaulter to banks/ FIs. The bank finance can be just for acquisition of shares of existing firms offering infrastructure facilities as defined in paragraph above. Further, acquisition of such shares should be in respect of firms the place the prevailing international promoters (and/ or domestic joint promoters) voluntarily propose to disinvest their majority shares in compliance with SEBI guidelines, where applicable. Banks/ FIs ought to have the requisite expertise for appraising technical feasibility, monetary viability and bankability of initiatives, with explicit reference to the chance analysis and sensitivity evaluation. Accordingly, banks needn’t ahead the credit score proposals above Rs. 1 crore in respect of debtors dealing in sensitive commodities to Reserve Bank of India for its prior approval. Although, not considered one of the earlier stipulations are at present applicable to the one delicate commodity covered under Selective Credit Control viz.
If all the banks improve their lending collectively, then they can expect new deposits to return to them and the sum of money within the economy will enhance. Excessive or dangerous lending may cause borrowers to default, … Read MoreRead more