Credit mis-pricing in India creates risks

Mis-pricing of credit risks by domestic bankers can both create systemic vulnerability and have implications for small borrowers, the deputy governor of the Reserve Bank of India, Rakesh Mohan, noted.

Mohan, speaking at the inauguration of the Centre for Advanced Financial Learning in Mumbai on Wednesday 20 June, pointed out that banks have access to all relevant credit information on borrowers and would-be borrowers and are in a good position to use this to their own advantage while discri

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