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10 of the Major Banks formed SLMA to Support Secondary Loan Market

Published on August 15, 2021
Current Context: The ten of the major banks operating in India have formed the Secondary Loan Market Association (SLMA) with an online platform.
10 of the Major Banks formed SLMA to Support Secondary Loan Market
  • The formation of SLMA was made for trading corporate loans in the secondary market.
  • The chairman of SLMA is Sanjay Srivastava.
  • The SLMA is a body that regulates the secondary market for corporate loans. The SLMA was formed on the recommendation of RBI’s Task Force on the development of the secondary market for corporate loans.
  • The website and the logo of SLMA were launched by the Executive Director of RBI, Saurav Sinha.
  • The 10 major banks that have formed SLMA are: State Bank of India, ICICI Bank, Axis Bank, Canara Bank, Standard Chartered Bank, Kotak Mahindra Bank, Deutsche Bank, Bank of Baroda, Punjab National Bank, and HDFC Bank.
  • The SLMA will help banks in the form of optimization of capital, management in liquidity and have risk management in the secondary market.
  • In terms of borrowers, the SLMA will benefit them with lower capital cost, high credit availability and enhancing relationships with banks and non-banks.
  • SLMA will provide a standardised and simplified platform for the primary loan documentation process and trading activities for the secondary loan market.
  • It will offer ideal trading, settlement and valuation processes and will assign the rules for its members to carry out businesses with fix transaction charges.

Question: 

Q.1 How many banks collaborated to form the Secondary Loan Market Association (SLMA)?
a. 14
b. 7
c. 3
d. 10
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