Twin Balance-Sheet Syndrome
The Twin Balance-Sheet Syndrome refers to the financial distress faced by banks and corporations simultaneously. It highlights the interconnectedness of corporate debt and bank asset quality. This phenomenon can hinder economic growth. It is particularly relevant in the context of Indian banking and corporate sectors. Addressing this issue is crucial for stabilising the economy and promoting sustainable development.
When the first resolution plan under the Insolvency and Bankruptcy Code (IBC) was approved in August 2017, it sent shockwaves through India’s financial system. A related party regained...
January 9, 2026
