In the near term, SCs / RCs may find it difficult to align their pricing to the expectations of the selling banks and the selling banks also may not have yet reconciled to a realistic sale price expectation for the assets that they want to offload, resulting in the reduction in sales.
The rationale behind these regulatory changes was to incentivise the process of recoveries / restructuring, as net asset values of SRs is calculated on the basis of the likely rate of recovery of stressed assets. 25.