Udichibarna Bose

1 INTRODUCTION The type of information used by banks in predicting credit risks represents a source of concern for policymakers as inaccurate information can greatly threaten the stability and intermediation role of the banking sector.

The Covid-19 pandemic has been driving corporate failures around the world, including in India. In the absence of the much-needed institutional arrangements in many developing countries, following default, a given firm’s management, capital and labour would come to a standstill, pushing it into liquidation. A sound bankruptcy process can rapidly resolve such a default scenario resulting in more entrepreneurship, greater risk taking, and better access to debt markets.