Economic Impact of the IBC On India’s Financial Sector: A Quantitative and Qualitative Analysis
Keywords:
Insolvency and Bankruptcy Code, Economic Impact, Financial Sector, Non-Performing Assets, Credit Markets, Structural Changes, Behavioral Changes, Insolvency Resolution, Bankruptcy LawAbstract
The 2016 introduction of the Insolvency and Bankruptcy Code (IBC), which provides a simplified and time-bound process for resolving troubled assets, has fundamentally changed India's approach to insolvency and bankruptcy. The objective of this research is to evaluate the IBC's economic effects on India's financial industry, taking into account both quantitative and qualitative factors. The study compares the pre-IBC period to the IBC's impact on non-performing assets (NPAs), recovery rates, and resolution process speed quantitatively. The impact of the Code on credit markets and the financial stability of banks and other financial institutions will also be evaluated, with a focus on how they lend and manage risk. The dissertation investigates corporate governance, the role of stakeholders including creditors, debtors, and resolution specialists in the bankruptcy process, as well as structural and behavioural changes inside financial institutions, qualitatively. The study also discusses the IBC's shortcomings and critiques, such as implementation delays, backlogs in court cases, and how well it handles major company defaults. In order to support India's financial stability and economic expansion, this research aims to give a thorough grasp of the IBC's effects while making suggestions for its improvement and wider implementation.
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