2. Q.)Consider the following statements regarding the bad bank in news
- It is an asset reconstruction company (ARC) or an asset management company that takes over the bad loans of commercial banks.
- It is also involved in lending and taking deposits and helps commercial banks clean up their balance sheets and resolve bad loans.
- The takeover of bad loans is normally below the book value of the loan and the bad bank tries to recover as much as possible subsequently.
Which of the above statements are correct?