04 October, 2019
3 Min Read
GS-III: The current crisis at PMC Bank serves the country a warning.
The crisis unfolding at PMC Bank is a tip of the iceberg of larger, unresolved problems in India’s banking sector.
Roots of the cause:
Other problems with the cooperative sector:
Way ahead for cooperative banks:
The fundamental political economy problem is that public sector banks serve multiple masters and, as a consequence, loan decisions are not always based on economic and financial logic.
Source: Live Mint
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