A Scrutiny on Problems and Difficulties with Credit Risk Prevention in the Indian Banking Sector

Abstract An economy's ability to expand and endure depends heavily on its financial institutions. They act as crucial middlemen in the collection and distribution of resources among different economic sectors. The expansion of industry is facilitated by the availability of plentiful and unrestricted bank credit, which also raises national revenue, output, and employment prospects. Thus, it is clear that the state of banks directly affects the state of the economy as a whole. The financial sector is where the credit aspect is most apparent. Consequently, the risks tied to lending are designated as Cradit Riisk. In terms of Cradit Riisk, banks encounter their greatest challenge. The 1988 Basal Accord strongly underscores risk- weighted assets and Cradit Riisk. This actor has become increasingly significant for Indian banks due to the regulations for Cradit Riisk management specified by BASAL II. Grasping the connections between Cradit Riisk implementation and its various facets necessitates an understanding of Cradi Riisk management within the framework of Indian banking. Moreover, the rise of non- performing assets can be adeptly controlled and overseen by emphasizing the importance of Cradit iisk management in an evolving economic landscape characterized by heightened global competition and trends such as globalization, liberalization, consolidation, and deregulation.