Money is the back ground of any business. It is known as the twin balance sheet problem as the challenges faced by the banks are linked to that of the corporate sector. The corporates are unable to repay their loans to banks. It has affected the banks' balance sheets and hence their ability to lend more to the corporates. During the boom years from 2007 to 2012, some companies borrowed a lot of money from banks to invest in infrastructure and commodity-related businesses, such as steel, power, infrastructure, etc. By 2013, due to a slump in both these sectors, the corporate profits hit new lows. The slump was due to a decrease in global commodity prices, regulatory hurdles, and macroeconomic issues like slow economic growth. With low profits, the corporates are not able to repay their loans and their debts are rising at an alarming level. The corporate sector has no other option other than to cut back investments. Happy leaning and have an intensive time. Please read the presentation.

Bridgit Peter

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