BANK SIDBI Grade A (General) Phase I Mock Test 2024 Banking and Financial Institutions Banking sector reforms in India NPA management
Consider the following statements about the advantages of centralized bad banks:
1. Centralized bad banks provide banks with an opportunity to clean their balance sheets by segregating stressed assets.
2. They enable banks to focus on core operations such as new lending instead of distressed asset management.
3. Centralized bad banks often lead to higher recovery values by avoiding fire sales of assets.
Which of the above statements is/are correct?
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2, and 3
5
None of the above