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 disadvantages of centralized bad banks:
1. Centralized bad banks can encourage moral hazard among banks, leading to reckless lending practices.
2. The cost of setting up and maintaining a centralized bad bank is often borne by taxpayers.
3. Political pressures and lack of transparency can hinder the efficient disposal 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
1 only