- interest margin reduced
- gap b/w interest rates charged on deposits and loans
- mainly due to external benchmarking of rates
- asset liability challenges
- esp w/ infra loans
- govt’s push for security bonds might reduce pressure on banks for infra financing
- but less likely to be popular due to high premiums
- double financial repression
- twin balance sheet syndrome
- NPA
- was the biggest stress on indian banks during 2011-16
- refer: Non Performing Assets
see also:
- Basel Norms which try to address risks banks face