Bank NPAs weaken monetary policy transmission, lower loan growth rate, says RBI paper

Bank NPAs weaken monetary policy transmission, lower loan growth rate, says RBI paper

Banks with higher Capital to Risk (Weighted) Assets Ratio (CRAR) see a lower cost of funds. Hence, a higher CRAR “unlocks the bank lending channel and helps in smooth transmission of monetary policy,” the RBI paper said.
Check the source here –Source, Financial Express.

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