But the real problem the CVC has to address is the fear of lending amongst bankers. Public sector banks have had to contend with tighter criteria for classification of non-performing assets, together with a ham-handed approach on the part of the investigative agencies. Add the fact that while mistakes are punished, initiatives are rarely rewarded, andwe have a situation which is tailormade for bankers refusing to take risks, even when these risks are bankable. At the same time, the economic slowdown has resulted in the larger companies deferring payment to their smaller suppliers. Not being able to access extra bank credit, these smaller companies are consequently facing, not only a demand slump, but also a credit crunch. Private and foreign banks have been outside the purview of the CVC or even the investigative agencies without making any difference. One solution would therefore be for the government to reduce its holding below 50 per cent in banks, in which case they fall outside the ambit of these agencies. But until that becomes politically acceptable, the least that can be done is for the CVC to devise protective mechanisms to ensure that credit flow is not affected.