Banks need to be extra careful when extending crossborder credit. They need to have a proper understanding of the legal infrastructure, the banking and regulatory landscape and the debt recovery processes of the country with which they intend to do business. In India, the cumbersome process of crystallizing collateral led some banks to resort to naming and shaming their non-performing corporate customers.
In the midst of growing protest, the Central Information Commission of India “is convinced that the benefits accruing to the economic and moral fabric of the country far outweigh any damage to the fiduciary relationship of bankers and their customers if the details of the top defaulters are disclosed”.