There has been a substantial build-up of non-performing assets in the Indian banking sector. Despite multiple initiatives and regulatory changes, there is a need to revisit the reporting and regulatory frameworks and redefine the focus areas. Banks credit problem has often been explored under the lens of asymmetric information. Spreads are generally directly proportional to probability of default and an inverse function of collateral and security. However, in India, there is a noticeable gap in academic literature to suggest robust institutional reforms to address the twin curse of adverse selection and moral hazard. Regulatory frameworks, particularly with respect to risk management function of banks, also grapple with predicting forthcoming disruptions. As banks redesign their corporate customer experience on a digitalized scale, leveraging large-scale available data, there is a bigger challenge to the regulator to ensure risk regulations are effective and save costs as well. The authors suggest that if information asymmetry exists, the blockchain protocols may mitigate uncertainty. Though blockchain technology has been leveraged to increase effectiveness of certain corporate banking products, the originality of the paper lies in coming out with a detailed framework for the possible use of blockchain (a distributed ledger based technology) for credit decisions, timely generation of red-flags and tightening the regulatory framework. The paper also lists down suggestions to improve the enabling regulatory and reporting architecture using regulatory technology (RegTech) to support unification of data already available in the banking system. This will improve the quality of information available to the lenders and enable them to take more informed credit decisions (data-driven finance), while granting and monitoring loans. Ultimately, it will lead to an optimization of credit risk capital.

印度银行业已经大量积累了不良资产。尽管采取了多项举措和法规变更，但仍需要重新审查报告和法规框架并重新定义重点领域。银行信贷问题通常是在信息不对称的背景下进行探讨的。价差通常与违约概率成正比，并且与抵押品和安全性成反比。但是，在印度，学术文献上存在明显的差距，无法提出强有力的制度改革以应对不利选择和道德风险的双重诅咒。监管框架，尤其是与银行风险管理职能有关的监管框架，也与预测即将到来的破坏息息相关。随着银行重新设计其数字化规模的企业客户体验，利用大规模可用数据，监管机构要确保有效的风险监管并节省成本也面临着更大的挑战。作者建议，如果存在信息不对称，则区块链协议可以减轻不确定性。尽管利用了区块链技术来提高某些公司银行产品的有效性，但本文的独创之处在于提出了一个详细的框架，以供可能使用区块链（基于分布式账本的技术）进行信用决策，及时生成红标志和加强监管框架。本文还列出了一些建议，以使用监管技术（RegTech）来改善支持性的监管和报告体系结构，以支持银行系统中现有数据的统一。这将提高贷款人可获得的信息质量，并使他们能够在授予和监控贷款的同时做出更明智的信贷决策（数据驱动的融资）。最终，它将导致信用风险资本的优化。