Or can we detect the seeds of the crisis in policies and structural changes that had taken place before? And if so, what needs to be changed? It would be foolish to argue that what we have experienced in the last four years is the sole result of an exceptionally large adverse shock.
It needs to be appreciated that infrastructure financing pose some unique risks on the credit and liquidity fronts on account of long-gestation period involved. Appraising the credit proposal of infrastructural project in terms of necessary skill sets is distinctly different from credit appraisal of other types of loans that banks normally provide.