Banks Will Monitor Solvency, Guarantees Safe Credit Risk

Banks Solvency CreditBanks expect faster disbursement of sanctioned money to micro, small and medium enterprises (MSMEs) after the lockdown is lifted, with the fear of money coming back being addressed in the form of guarantees. They may provide safe credit so that they remain safe credit allocation among the MSMEs sectors.

While the issue of providing liquidity to existing borrowers who are exhaust with revenues has been addressed, banks will have to undertake due diligence on the solvency of units, said, bankers. Public and private sector banks said the government was setting bigger goals, and with the present disruption, the challenge was beyond just providing money to address the immediate requirement for a revival of the economy. They may ensure safe credit disbursement.


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