Tough love for bad debt? RBI deputy governor targets banks' toxic loans

He is continuing Raghu's practice of calling a spade a spade

Economist Viral Acharya spent nearly two decades studying banking crises around the world. Now, as a deputy governor at India's central bank, he is turning his attention to one that may be developing at home.

At issue is what to do with $133 billion in stressed assets accumulated by banks after years of reckless lending, a problem that has bedevilled regulators and stalled loans that India needs to revive private investment.

Acharya has put the issue back in the headlines.

In a speech last week, the Reserve Bank of India official proposed creating "bad bank"-type institutions to buy and restructure