Avoiding a Japanese Decade-New York Times Edit.
Many points have been left out.
Risk is taken by Banks for large corporations , not for small/individual borrower.If you analyse bad debts , you will find maximum percentage shall be from large/corporate borrowers.Most of the time large corporations are financed based on non economic or financial considerations.
Banks must take reasonable risk in lending to small companies and individuals for it shall generate demand and propel economy.
Cap on income or tax on income beyond a certain ceiling shall prevent social unrest and morally being paid enormous sums as in Banks/corporations is obscene
While lending care also should be taken, whether it be for small or big corporations, in determinig the repayment capacity..
Non Performing Assets should be disposed after 5 years.
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