In bad times, promoters leave creditors with hardly any value to extract from failed businesses. The biggest victim is a state-dominated banking system that recoups very little from insolvent companies. To give government-backed lenders visibility on whether their funds are being siphoned off, the central bank recently took a drastic step. Any company with 500 million rupees ($6.7 million) or more in debt will have to open a dedicated account at a bank exposed to at least 10% of its borrowings to pay creditors. Only the lender operating this escrow account can handle the firm’s day-to-day banking business. Since public-sector banks do the bulk of corporate lending, they stand to gain current accounts. 

Existing banking relationships will need to be consolidated within three months. This is bound to upset the likes of Citigroup Inc., HSBC Holdings Plc and Standard Chartered Plc. These global-local, or “glocal,” banks have been beefing up 

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China may never catch up to buying the agreed amounts of U.S. goods and services under the “phase one” trade deal, an expert said on Friday.

Both countries signed the agreement in January, which brought to a pause the trade war between them that saw retaliatory tariffs being slapped on goods worth hundreds of billions of dollars. Among other things, China committed to buying, over two years, at least $200 billion more U.S. goods and services in addition to its 2017 purchases.

But China has fallen short so far, noted Scott Kennedy, senior advisor and Trustee Chair in Chinese Business and Economics at the Center for Strategic and International Studies.

“If it’s really based on the genuine commitments that they inked in January, they’re far behind and they’re never gonna catch up,” he told CNBC’s “Squawk Box Asia.”

Data compiled by Peterson Institute for International Economics found that in the

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