- 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
a. 14
b. 7
c. 3
d. 10
