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What is Bad Bank Overview for UPSC Aspirants about?

The document discusses the concept of a "bad bank" proposed in the Union Budget 2021-22. It provides the following key points: 1. A bad bank is a financial entity that buys non-performing assets or bad loans from banks to ease their burden and allow them to lend again. 2. While generating profits is not the primary aim, a bad bank could potentially earn profits by restructuring and reselling bad loans at higher prices than it paid banks. 3. Setting up a bad bank consolidates bad loans and aims to help

Author

2011ume1521

Language

EN