A) Asset Reconstruction Companies
B) SARFAESI Act
C) BASEL accounting system
D) None of these
Correct Answer: D
Solution :
An asset reconstruction company's primary goal is to manage and to make profitable those assets which have been underperforming or become formally classified as NPA's belonging to companies who have been unable to generate sufficient timely revenue to service their outstanding obligations. SARFAESI Act as we know is Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Banks utilize this act as an effective tool for bad loans (NPA) recovery. It is possible where non-performing assets are backed by securities charged to the Bank by way of hypothecation or mortgage or assignment. Basel is a set of international banking regulations put forth by the Basel Committee on Bank Supervision, which set out the minimum capital requirements of financial institutions with the goal of minimizing credit risk.
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