The determinants of default risk of banks in emerging economies have so far received inadequate attention in the … to established perceptions. Priority sector credit has been found to be not significant in affecting NPAs; this is … credit is a falsely founded perception. Bad debts are dependent more on the performance of industry than on other sectors of …

possibility of a high interest rate, hedge economy emerges, where powerful banks invest surplus loan interest. With speculation …, banks lobby to enter investment markets and the system is precariously liquid/illiquid. The paradox of a Ponzi economy …, where loans never get repaid, is that private banks must speculate to increase reserves and rely on systemic crises to …