Author: Amit Balooni

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    A Case for Corporate Ownership of Banks

    Amit Balooni

    The question of permitting Non-Financial Corporates (NFCs) into banking is well debated. While the jury is still out, the bias is clearly towards ‘NFC ownership of Banks is bad’. However the existing template of bank licensing that excludes NFCs’, is not without loopholes either. The moot points, therefore, are – does NFC ownership significantly increase the existing risks? and, can the risks be mitigated? In this article, we probe these questions, making a case for having NFC owned banks

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    Liquidity Assessment for Credit Risk

    Amit Balooni

    Even after we have taken due care of matching correctly graded current assets to current liabilities, the business eventualities, customer behaviour and business exigencies may still bring new challenges. How does a lender factor in these potential risks on company’s liquidity?
    In Part 2 of the #LiquidityAssessment series, Amit Balooni explains the concept of #NetWorkingCapital and the caution that a Credit Analyst needs to take.