Set-up online platform for NPA sales: RBI’s Acharya
Mumbai: Reserve Bank of India’s (RBI) Deputy Governor Viral Acharya has suggested that banks, asset reconstruction companies and credit rating agencies can come together to set-up an online platform for sale of NPAs (non-performing assets) in India.
According to Acharya, the platform will help India achieve a “thriving market” for sale of NPAs.
“IBA (Indian Banks’ Association), ARCON (Association of Asset Reconstruction Companies) and CRAs (credit rating agencies) can come together to set up the equivalent of Loan Syndication and Trading Association (LSTA) in the United States,” Acharya said on Saturday at an event held here.
He was speaking at the inauguration of ‘Assocham Arcon 2018 – ARCs: Emerging avatar in new distressed landscape’.
“My recommendation or at least I would encourage various players to discuss whether there is value to building something like this as the United States has built it over the period of time and South Korea has built it during the crisis and then it became an industry standard for doing loan sales thereafter,” said Acharya.