Right.
When uncertain, better categorize it as risk as your data as is incomplete and avoid it.
Short term returns are always dicey.
Apply common sense in lending-simple formula is whether the borrower can repay with out you going into auditor’s mumbojumbo like NPA( non performing assets-meaning not recoverable).
Do not over sell a financial product.
Do not force the borrower to borrow, as in credit card companies.
Allow people to foreclose loans, with out penalty.
Screen your agents who bring in business for you.
Tag: Stimulation of economy
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On Credit risks
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On Stimulating Economy
The suggestion assumes that corporates were under-hired, which is not true.Secondly to avail the tax benefits- What is to prevent the corporates to fire the existing employees and hire new ones?
Creating consumers in general terms is not the solution.It is not what you spend but what you spend for that fuels economic recovery.If consumers for non essential items are created, situation shall worsen.If you create consumers for infra structure( results will take some time in coming) then you are on a safe wicket.
Merely increasing jobs for the sake of creating consumers shall result in negative growth of the corporate sector.Best way is to explore new areas of investment in goods and services and effect a cut in imports.
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