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Abhijit Banerjee, Economics, Nobel Prize Banking & Finance

Dilute Banking Stakes Below 50%: Nobel Laureate Abhijit Banerjee’s solution Advice to Indian Banking Sector

The reasoning is that the fear of investigation by the CVC in default cases acts as a dampener in decision making; this has paralysed the banking system and bankers do not want to lend. "Reducing government equity in public sector banks to under 51 per cent will take them out of the CVC purview," Abhijit Banerjee explained.

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