Evolution, Challenges, and Consequences of Problematic Assets in the Central Cooperative Banking Sector

Abstract

The Central Cooperative Banking Sector plays a crucial role in supporting rural economies and small-scale industries. However, the growing burden of problematic assets poses significant risks to their financial health and operational efficiency. This study examines the evolution, challenges, and consequences of problematic assets in this sector. It explores the factors contributing to asset deterioration, the impact on banking stability, and potential mitigation strategies. The study also highlights regulatory interventions and policy measures aimed at strengthening cooperative banks against asset-related risks. The findings provide valuable insights for policymakers, financial institutions, and stakeholders to ensure the sustainability and resilience of the sector.