The government plans to revise the annual targets for public sector banks, moving away from a focus on size that has traditionally led banks to artifi...
Question
The government plans to revise the annual targets for public sector banks, moving away from a focus on size that has traditionally led banks to artificially boost their loans and deposits at year-end to meet growth goals. According to banking and government sources, the new targets, to be discussed in an upcoming meeting with senior state bank officials, will emphasize efficiency. The objectives will be based on metrics such as return on assets, return on equity, and controlling non-performing assets (bad debts).
Which of the following can be logically inferred from the above information?