Banking Credit

There is  strict law for controlling defaults in credit given to corporates. However due to few defaulters entire industry suffering due to poor credit flow. Economic growth is getting affected by this. What is the solution? Its public money savings which is financing economic activity. In past the same was misutilised and the trust is now broken. In order to revive economic growth this trust is to be reestablished. Banks to have strict compliance and as well as soft hand for genuine business losses.

Thing is that due diligence should b made before sanctioning the loan and any default taken care of in the first instance.  See the way they sanction home loan. They pay the builder directly keeps ur property mortgaged  keep signed cheques for recovery in case of default. Why the directors' personal properties are not taken as collateral?

If everyone follows procedure it is good for entire business and economy 

Money is wasted in frauds and defaults which are deliberately done and the same needs to be checked at all costs