Asset Reconstruction Companies

Asset Reconstruction Companies (ARCs) are specialized financial institutions that buy distressed or non-performing assets (bad loans) from banks and financial institutions. Their goal is to manage and recover the owed money more effectively. Once they acquire these assets, ARCs work to resolve or sell them profitably, helping banks recover funds and improve their financial health. They play a crucial role in maintaining a healthy banking system by efficiently managing bad debts and facilitating credit flow.