Financing reindustrialization: bring back development banks
Commercial banks simply do not have the capability to assess credit risk on long-term investment lending because they have always been engaged in advancing short-term working capital
Many commercial banks in India are under financial stress. This has imparted a fragility to the banking system as a whole. Scams and scandals surface from time to time, making headline news. There is also a quiet crisis that runs deep. It is not audible yet. But it is mounting, since recurring failures of regulation or governance have not led to any accountability or corrective action. Some erosion of confidence is no surprise. If the problem continues to be neglected, a trust deficit could develop over time.