Small bank insolvency resolution: Perspectives from India

Shikha, Neeti

Abstract

This chapter critically examines the underexplored issue of resolving small, systemically non-important banks within the global banking resolution framework. While post-Global Financial Crisis reforms have focused predominantly on large, complex institutions due to their contagion risk, the resolution of smaller banks has received limited policy and academic attention. The “too-many-to-fail” problem poses distinct risks, especially in economies where smaller banks play a vital role in regional and sectoral credit markets. Drawing on recent crises and policy developments, this chapter explores the significance of small bank failures and presents India’s evolving approach to managing and resolving such institutions as a case study in tailored resolution mechanisms.
SDG 8, 9 & 16

• Online Publication Date: May 20, 2025
• Publication Date: May 20, 2025
• Deposit Date: Jun 10, 2025
• Publicly Available Date: Nov 21, 2025
• Peer Reviewed: Peer Reviewed
• Book Title: In and out of solvency: A tribute to prof. Reinout Vriesendorp
• ISBN: 9789013181111
• Public URL: https://uwe-repository.worktribe.com/output/14556051
• Publisher URL: https://shop.wolterskluwer.nl/In-and-Out-of-Solvency-sNPINOUTSO/
• Contract Date: Feb 14, 2025