Prof. Anusha Chari of the University of North Carolina on shocks and capital flows in emerging markets
Scientific Sense ®
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Forbearance During the Global Financial Crisis
The central bank of india, the r b i, stepped in and they basically said that were going to provide forbearance a to banks. The idea being that if banks could say that a loan was under temporary liquidity, stress, thee would be given relief from capital provisioning. And part of the problem is that if you're going to ever green a bablon a, which is a phenomenon nos known as extend and pretend a, then you're essentially gambling for a resurrection, right? Somehow this dommy firm is going to come rise up again, am and am. But then, you know, the chickens always come home to roost. We weve sce kind of see
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