What I emphasized was that due attention should be paid to a possible downswing of the economy arising from these risks especially when the economy had structural problems and was vulnerable to external shocks. Unfortunately, these downside risks actually materialized in 2001.
It lays out the case for structured early intervention and resolution by regulators for banks that become under-capitalised due to poor asset quality or vulnerable due to loss of profitability. Detailing the mandatory and discretionary actions under the RBI's Revised PCA framework, it compares and contrasts these with the PCA framework operating in the United States.