BankChain Project in India Launches Blockchain Exchange For Stressed Assets

 an exchange for selling and buying stressed assets, said Sudin Baraokar, innovation adviser at State Bank of India, a member of BankChain. Stressed assets include non-performing assets (NPAs), restructured loans, assets under reconstruction and written-off assets.

The blockchain platform comprises a smart contract-powered auction system, built-in regulatory reporting and other features which will allow banks to divide up stressed assets and sell them to other banks, asset reconstruction companies or funds. The blockchain will also offer a repository for documents related to the assets.

Baraokar said,

“This [project] will help banks get a more data and market-driven price discovery of stressed assets and will automate and bring a more orchestrated effort for sale of Non-Performing Assets (NPAs). By leveraging blockchain, we can then continue to develop more structured products once we have a Loan Asset Exchange system in place.”

NPAs have come into limelight recently, as an observed decline in asset quality has been seen as a major economic risk for banks.

Also Read: Blockchain Technology Can Terminate All traditional Banking Services By 2030 Says Sudin Baraokar

Shinam Arora, CEO of Primechain, said in the statement.

“Stressed assets have become a multi-trillion dollar challenge for the global banking sector. The gross non-performing assets of the banks in India are over Rs. 8 lakh crore [$123 billion],” 

In fact last month, the Reserve Bank of India (RBI) issued a reassessed framework for banks, allowing early detection and identification of stressed assets.

KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology, Cryptocurrencies and upcoming ICO’s.