The Global Lead for Credit Infrastructure at the World Bank, Mahesh Uttamchandani has described as acceptable , governments intervention in the DKM microfinance scam to help customers get back their investments.
According to him, unlike corporate private entities, an insolvency involving financial institutions like DKM, have larger societal impact which have dire economic implications.
A regime for insolvency for financial institutions has to involve the public protection component which is very different from a traditional corporate insolvencytypically one finds a financial institution in insolvency regime involves an element of conserved ownership by the government or an arm of government, he stated.
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Read the full article at: http://citifmonline.com/2016/10/07/govt-interference-in-dkm-acceptable-world-bank-executive/