Legislative and judicial framework governing NPAs: Comparative Analysis of Indian and Japanese Banking law
Year: 2025
Type: article
Abstract: Proper handling of non-performing assets (NPAs) acts as a fundamental element for achieving both financial stability and economic development. Through a comparative analysis this paper investigates how the legislative and judicial systems regulate NPAs within India and Japan which show distinctly separate financial and economic structures. Needing more credit during fast-paced growth combined with inadequate management controls increased NPAs in India but Japan faced NPA problems during its system transparency shortcomings and 1990s asset bubble burst effects. Key legislative responses such as India’s Insolvency and Bankruptcy Code (IBC) and SARFAESI Act along with Japan’s Financial Reconstruction Act and Resolution and Collection Corporation establishment are part of this examination. This analysis reviews judicial approaches both from India’s Debt Recovery Tribunals and Japan’s preferred use of pre-litigation resolution mechanisms. According to research in this paper, successful approaches and valuable insights both countries employ demonstrate that active early measures paired with solid regulatory control and complete transparency stand out as key strategies to manage Non-Performing Assets (NPAs). The results offer essential knowledge to financial regulators and banking organizations about how to manage Non-Performing Assets effectively in today's international financial systems.
Author: POOJA CHAUDHARY
Institution: University of Luxembourg
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4409772144