Let me emphasize that the basic cause of procyclical bank lending is less the result of rules-regulatory or self imposed--and more our difficulty in predicting the future. No lender starts out to make loans that default. Risk management does not enable us to perceive unfolding events with any greater clarity.
Effective engagement with DBT should be seen by banks as potential source of building a big market of small customers and thereby create a stable business base. 31. Overall, banks should recognize the immense business potential of conducting government business. Earlier business models have to be replaced and made suitable for the latest technology led banking platforms and payment system infrastructure.