Managing risk in banks
8 years, 2 months ago

Managing risk in banks

The Hindu  

The Reserve Bank of India’s biannual Financial Stability Report has once again flagged the fact that risks to the banking sector remain worryingly “high”. There has been no perceptible improvement in the health of domestic banks, even six months after the RBI’s previous report had highlighted the sector’s high vulnerability on account of the increase in capital requirement and worsening asset quality, spotlighting the need for urgent policy interventions. A survey, of experts and market participants, conducted by the RBI in October-November reveals that among institutional risks, credit growth and cyber risk were seen as two key “high risk factors”. A proponent of sequestering and separately dealing with the stressed assets and bad loans on a lender’s books, Mr. Acharya had in an interview suggested that the “unhealthy parts of the troubled banks” could be separated from the healthier assets and put into a ‘bad bank’ to prevent systemic contagion.

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History of this topic

RBI assures IndusInd Bank customers: 'Bank's financial health remains stable'
1 week ago

RBI assures IndusInd Bank customers: 'Bank's financial health remains stable'

India Today  

The Reserve Bank of India has reassured depositors and investors that IndusInd Bank is financially stable and there is no reason to panic. As per auditor-reviewed financial results of the bank for the quarter ended December 31, 2024, the bank has maintained a comfortable Capital Adequacy Ratio of 16.46 per cent and Provision Coverage Ratio of 70.20 per cent,” stated …

RBI warns of financial risks from surging unsecured debt, speculative trading
1 month ago

RBI warns of financial risks from surging unsecured debt, speculative trading

Live Mint  

India’s rapid digital financial expansion is fuelling both opportunity and risk, with rising unsecured debt and speculative trading posing new challenges for the financial system, Reserve Bank of India deputy governor M. Rajeshwar Rao warned Friday. Read this | Gold auctions on the rise as NBFCs look to clean up books on RBI diktat, rise in prices Regulated financial firms …

S. Naren has an advice for investors: protect gains made over past five years
1 month, 2 weeks ago

S. Naren has an advice for investors: protect gains made over past five years

Live Mint  

In an uncertain financial landscape marred by slow earnings growth at home and global tariff tantrums, the best equity strategy for the householder is to not allocate just to equities, but to also channel savings into debt, global stocks, realty, gold and silver, according to the investment head of the country's second-largest fund house. Those choosing the systematic investment plan …

Banks most affected by cybersecurity incidents: Economic Survey
1 month, 3 weeks ago

Banks most affected by cybersecurity incidents: Economic Survey

The Hindu  

The Economic Survey 2024-25 said banks were the most affected by cybersecurity incidents with reports indicating that almost one-fifth of all reported cyber incidents involve financial institutions. Economic Survey 2024-25 Highlights “These threats, ranging from phishing and ransomware to Distributed Denial of Service attacks, SMSing, and fake/malicious mobile applications, pose serious challenges to the financial system’s stability,” the report said. …

India’s Banks Know Climate Is Their Biggest Threat
2 months, 1 week ago

India’s Banks Know Climate Is Their Biggest Threat

Live Mint  

-- Twice a year, the Reserve Bank of India reviews the stability of the country’s financial system. While they downplayed the usual concerns — asset quality, interest rate risk, capital outflows — one particular threat loomed larger than ever before: climate change. It isn’t just that India, according to the Network for Greening the Financial System, will see sharply lower …

IMF finds RBI’s stress test model strong and well developed
4 months ago

IMF finds RBI’s stress test model strong and well developed

Deccan Chronicle  

Chennai: International Monetary Funds finds RBI’s model suite for solvency risk analysis, liquidity risk analysis, and balance sheet connectedness of banks alongside non-bank financial institutions to be strong and well developed in numerous respects. The most noteworthy recommendations pertain to credit risk, market risk, and macro-financial scenario design,” IMF said. Among the three positive findings of the model suite, IMF …

Economic Survey 2023-24: Displaying stellar show banking, financial sectors must brace for likely vulnerabilities
8 months ago

Economic Survey 2023-24: Displaying stellar show banking, financial sectors must brace for likely vulnerabilities

The Hindu  

With India’s banking and financial sectors displaying a stellar performance in FY24 and as India’s financial sector undergoes critical transformation, it must brace for likely vulnerabilities originating globally or locally, the Economic Survey 2023-24 has cautioned. Economic Survey 2023-24 LIVE updates In FY24 bank credit witnessed double digit and broad-based growth and asset quality improved dramatically with gross and net …

RBI warns banks of cyberattacks, scheduled commercial banks at highest risk
8 months, 3 weeks ago

RBI warns banks of cyberattacks, scheduled commercial banks at highest risk

Hindustan Times  

Banks across India are on high alert with the Reserve Bank of India announcing possible cyber attacks, the Economic Times reported, adding that the banks have been told to constantly monitor their systems like SWIFT, the card network, RTGS, NEFT and UPI. The financial sector reported more than 20,000 cyber attacks in the last 20 years, resulting in losses of …

Indian economy, financial system remain robust despite global economy facing heightened risks: FSR
8 months, 3 weeks ago

Indian economy, financial system remain robust despite global economy facing heightened risks: FSR

The Hindu  

The Indian economy and the financial system remain robust and resilient, anchored by macroeconomic and financial stability, the Reserve Bank of India said in the 29th issue of the Financial Stability Report which was released on June 27. SCBs’ gross non-performing assets ratio fell to a multi-year low of 2.8 per cent and the net non-performing assets ratio to 0.6 …

Indian banks well placed to ride on economic growth: Moody’s
9 months, 1 week ago

Indian banks well placed to ride on economic growth: Moody’s

The Hindu  

Indian banks and non-bank finance firms are well placed to seize opportunities from India’s strong economic prospects through lending growth in sectors like infrastructure, energy transition, manufacturing, small businesses and retail, Moody’s Ratings said on Wednesday. Moody’s said credit quality of India’s financial system has strengthened over the past 3-4 years due to record-high profitability, low delinquencies and stable domestic …

Financial stability challenges need to be discussed, IMF MD echoes RBI governor
9 months, 2 weeks ago

Financial stability challenges need to be discussed, IMF MD echoes RBI governor

Hindustan Times  

Echoing the sentiment expressed by Reserve Bank of India Governor Shaktikanta Das, Kristalina Georgieva, Managing Director, International Monetary Fund, underscored the need to discuss the financial stability challenges in a separate discussion in Washington D.C. Kristalina Georgieva, managing director of the International Monetary Fund. She underscored the challenges posed to the financial sector due to the introduction of new technologies …

6 key steps RBI has taken to ensure safe banking practices. Details here
1 year ago

6 key steps RBI has taken to ensure safe banking practices. Details here

Live Mint  

Digital banking has brought a paradigm shift to the way we carry out financial transactions. Digital lending guidelines: Additionally, RBI has issued guidelines on digital lending which require regulated entities to provide a key fact statement to the borrower before the execution of the contract. The banking regulator also takes appropriate supervisory actions including imposition of business restrictions. Cyber-crime reporting …

RBI to act early to prevent any risk to India's fastest growth potential: Guv Shaktikanta Das
1 year, 2 months ago

RBI to act early to prevent any risk to India's fastest growth potential: Guv Shaktikanta Das

The Hindu  

Reserve Bank Governor Shaktikanta Das on Thursday said India is one of the fastest growing major economies in the world with a rising potential growth profile, and stressed that the central bank remains committed to act early and decisively to prevent any build-up of risks. In his foreword to the RBI's 28th issue of the Financial Stability Report, Mr. Das …

What is RBI’s latest move to increase risk weight for lending about? | Explained
1 year, 4 months ago

What is RBI’s latest move to increase risk weight for lending about? | Explained

The Hindu  

The story so far: Seeking to rein in an observed rise in unsecured personal loans and credit cards, the Reserve Bank of India directed banks and non-banking financial companies to reserve more capital for risk weights. While presenting the monetary policy statement in October this year, Governor Shaktikanta Das had flagged concerns about the “high growth” in “certain components of …

RBI Stricter Norms For Consumer Credit Unsecured Personal Loans To Hit Banks' Capital Adequacy By 60 Basis Points S&P Global Ratings Credit Card NBFC
1 year, 4 months ago

RBI Stricter Norms For Consumer Credit Unsecured Personal Loans To Hit Banks' Capital Adequacy By 60 Basis Points S&P Global Ratings Credit Card NBFC

ABP News  

The Reserve Bank of India’s decision to enforce stricter rules for consumer credit by increasing risk weight for unsecured personal loans is expected to affect banks’ capital adequacy by 60 basis points, S&P Global Ratings said on Friday. The banking regulator on Thursday assigned increased risk weights on unsecured personal loans, credit cards, and lending to nonbank finance companies by …

PSBs asked to focus on robust risk management practices
1 year, 5 months ago

PSBs asked to focus on robust risk management practices

Live Mint  

New Delhi: The government has asked public sector banks to focus on robust risk management practices and mitigate cyber security risk as part of the three-year strategic roadmap designed for them to further strengthen the sector and prevent build up of bad debts. “We will individually discuss with each bank on the steps taken by them to strengthen their underwriting …

Indian economy makes solid recovery despite global headwind: RBI Governor Das
1 year, 8 months ago

Indian economy makes solid recovery despite global headwind: RBI Governor Das

The Hindu  

Reserve Bank Governor Shaktikanta Das on June 28 said that the Indian economy has made a solid recovery and is among the fastest-growing large economies despite heightened uncertainties and formidable headwinds. The global financial system has been impacted by significant strains since early March 2023 from the banking turmoil in the U.S. and Europe. Since the last issue of the …

Indian Banks Remain Resilient, Not Adversely Impacted by Recent Global Events: RBI Governor Shaktikanta Das
1 year, 10 months ago

Indian Banks Remain Resilient, Not Adversely Impacted by Recent Global Events: RBI Governor Shaktikanta Das

News 18  

RBI Governor Shaktikanta Das on Thursday said there is a renewed focus on the resilience and stability of the financial sector, and a resilient future-ready bank needs to be financially, operationally and organisationally resilient. He also said the Indian banking system remains resilient, and stress tests show Indian banks will be able to maintain capital adequacy above minimum requirement even …

The global banking turmoil explained; what’s happening at SVB, Credit Suisse
2 years ago

The global banking turmoil explained; what’s happening at SVB, Credit Suisse

Live Mint  

It all started on 10 March, 2023 after Startup-focused lender SVB Financial Group became the largest bank failure since the financial crisis, in a sudden collapse that roiled global markets and stranded billions of dollars belonging to companies and investors. At least four major banks, including Societe Generale and Deutsche Bank, are restricting new trades involving Credit Suisse or its …

RBI asks banks, NBFCs to deploy adequate resources to step up cybersecurity
2 years, 1 month ago

RBI asks banks, NBFCs to deploy adequate resources to step up cybersecurity

The Hindu  

February 20, 2023 10:47 pm | Updated 10:47 pm IST - Bengaluru Banks and financial institutions, including NBFCs and cooperative banks, in the country should continuously evaluate the cybersecurity threats and vulnerabilities they are exposed to and be resilient enough to combat any threat situation, said Rohit Jain, Executive Director, Reserve Bank of India, here on Monday. “Banks should continuously …

RBI issues draft guidelines for minimum capital requirements for market risk, here is all you need to know
2 years, 1 month ago

RBI issues draft guidelines for minimum capital requirements for market risk, here is all you need to know

India TV News  

The Reserve Bank of India has released draft guidelines for minimum capital requirements for market risk, as it aims to align banking regulations with Basel III standards. The draft guidelines outline separate classifications for securities included in banks' trading and banking books, which are subject to market risk and credit risk capital requirements, respectively. Interest rate and equity risk are …

Economy at risk from move to clean energy: study
2 years, 2 months ago

Economy at risk from move to clean energy: study

The Hindu  

India’s financial sector is highly exposed to the risks of the economy transitioning from being largely dependent on fossil fuel to clean energy, says a study in the Global Environmental Change journal, published online last week. Mapping India’s policy commitments against these lending and investment patterns reveals that India’s financial sector is heavily exposed to potential transition risks. Sovereign green …

Banking data bodes well for the economy
2 years, 2 months ago

Banking data bodes well for the economy

Hindustan Times  

The Reserve Bank of India ’s Report on Trend and Progress of Banking in India 2021-22, released on December 27, underlines the trend of continuous improvement in the health of India’s banking sector. The credit goes to RBI’s nimble-footed approach during the pandemic’s disruption and its sustained efforts to clean bank balance sheets in India. To be sure, the story …

Explained | RBI’s concerns on slow deposit growth
2 years, 4 months ago

Explained | RBI’s concerns on slow deposit growth

The Hindu  

The story so far: The Governor, Deputy Governor and a few other senior officials of apex banking regulator, the Reserve Bank of India, met MD and CEOs of public and certain private sector banks on November 16. Acknowledging the role played by private commercial banks in supporting economic growth during the pandemic and in the ongoing financial market turmoil, the …

Indian banking sector at forefront of cyber-attacks: What are major threats and way ahead
2 years, 4 months ago

Indian banking sector at forefront of cyber-attacks: What are major threats and way ahead

Firstpost  

The government data establish the sharp rise in attacks on the banking and financial sector. Between June 2018 and March 2022, India’s banks recorded 248 successful data breaches by hackers and criminals, central government notified Parliament on 2 August Ahead of Diwali, Uttar Pradesh cyber police arrested techies and a former bank employee involved in a Rs 145 crore illegal …

Big tech firms offering financial services pose risk to financial stability: RBI
2 years, 8 months ago

Big tech firms offering financial services pose risk to financial stability: RBI

Firstpost  

Big techs can scale up rapidly and pose risk to financial stability, which can arise from increased disintermediation of incumbent institutions, RBI stated Mumbai: Big tech companies offering financial services pose risk to financial stability as their complex intertwined operational linkages with financial institutions could lead to contagion effect and potential anti-competitive behaviour, the Reserve Bank of India has said. …

Cryptocurrencies clear danger, says RBI Governor
2 years, 8 months ago

Cryptocurrencies clear danger, says RBI Governor

The Hindu  

The government is in the process of finalising a consultation paper on cryptocurrencies after gathering inputs from various stakeholders and institutions. In the foreword to the 25th issue of the Financial Stability Report released on Thursday, Das also said that as the financial system gets increasingly digitalised, cyber risks are growing and need special attention. In the foreword of the …

reserve bank of india 25th financial stability report
2 years, 8 months ago

reserve bank of india 25th financial stability report

The Hindu  

The Reserve Bank of India on Thursday said the Indian economy is well on the path of recovery even though inflationary pressures and geopolitical risks warrant careful handling and close monitoring of the situation. The RBI's 25th Financial Stability Report also said banks as well as non-banking financial institutions have sufficient capital buffers to withstand shocks. "Notwithstanding the challenges from …

Economic Activity Recovering Since Late-May, Rising Cyber Attacks a Risk: RBI Guv
3 years, 8 months ago

Economic Activity Recovering Since Late-May, Rising Cyber Attacks a Risk: RBI Guv

News 18  

The second wave of the pandemic took a “grievous toll” on India, but the dented economic activity has started recovering from late-May, Reserve Bank Governor Shaktikanta Das said on Thursday. In a first, Das flagged the rising data breaches and cyber attacks as a risk facing the economy, along with others like firming global commodity prices. “The recovery that had …

India's economy to grow at 9.3% in FY22, risks persist: Moody's
3 years, 9 months ago

India's economy to grow at 9.3% in FY22, risks persist: Moody's

Hindustan Times  

India's economy will rebound in the current financial year to mark a growth of 9.3 per cent but the second Covid-19 wave has increased risks to the country's outlook with potential longer-term credit implications, Moody's Investors Service said on Tuesday. "We expect a decline in economic activity in the April to June quarter followed by a rebound, resulting in real, …

The Hindu Explains | What has the RBI cautioned against in its latest Financial Stability Report?
4 years, 2 months ago

The Hindu Explains | What has the RBI cautioned against in its latest Financial Stability Report?

The Hindu  

The story so far: On Monday, the Reserve Bank of India released the 22nd issue of its biannual Financial Stability Report outlining the risks to financial stability as well as the resilience of the financial system in the contemporary context. In his foreword, RBI Governor Shaktikanta Das flagged the many risks ahead, including the recent, accentuating “disconnect between certain segments …

Stretched valuations threaten stability: Shaktikanta Das
4 years, 2 months ago

Stretched valuations threaten stability: Shaktikanta Das

The Hindu  

Reserve Bank of India Governor Shaktikanta Das has flagged the growing disconnect between exuberant equity markets and real economic activity and warned that the ‘stretched valuations of financial assets’ threaten overall financial stability. “The disconnect between certain segments of financial markets and the real economy has been accentuating in recent times, both globally and in India,” Mr. Das wrote in …

Policy roll-back may dent banks’ health, says RBI
4 years, 2 months ago

Policy roll-back may dent banks’ health, says RBI

The Hindu  

In 2020-21, as policy support is rolled back, the impact of the COVID-19 pandemic may dent the health of the banks and non-banks, the Reserve Bank of India said in its Report on Trend and Progress of Banking in India 2019-20. This is a statutory publication in compliance with Section 36 of the Banking Regulation Act, 1949 and this Report …

Fixing the banking mess
4 years, 2 months ago

Fixing the banking mess

India Today  

India’s banking sector is frequently under the spotlight, and usually for unflattering reasons, from an insupportable pileup of loans gone bad to outright fraud to cronyism or worse. If government-owned banks like Punjab National Bank and State Bank of India have embarrassed themselves, names like YES Bank and ICICI Bank in the private sector have also made headlines for the …

Yes Bank working on risk, governance after bailout: New CEO
4 years, 7 months ago

Yes Bank working on risk, governance after bailout: New CEO

Live Mint  

Under a new management, Yes Bank has overhauled its risk and governance frameworks to save itself from reputational risks and come out as a brand committed to integrity, its chief executive and managing director Prashant Kumar has said. "The bank has made significant changes in the risk framework to ensure that impending risks are identified, evaluated, and resolved before these …

RBI releases Financial Stability Report; expects bank's gross NPA to rise to 12.5% by March 2021
4 years, 8 months ago

RBI releases Financial Stability Report; expects bank's gross NPA to rise to 12.5% by March 2021

New Indian Express  

The report said that in response to COVID-19, a combination of fiscal, monetary and regulatory interventions on an unprecedented scale has ensured normal functioning of financial markets. Actions undertaken by financial sector regulators and the Government to mitigate the impact of COVID-19 eased operational constraints and helped in maintaining market integrity and resilience in the face of severe risk aversion. …

RBI Governor Shaktikanta Das asks banks to raise capital in advance, build buffers to ensure credit flow
4 years, 8 months ago

RBI Governor Shaktikanta Das asks banks to raise capital in advance, build buffers to ensure credit flow

The Hindu  

As the COVID-19 outbreak has caused unprecedented uncertainties and exposed the country’s financial system to vulnerability, the Reserve Bank of India has asked lending institutions to conduct periodic “Covid stress tests” on their balance sheets to always remain alert and take timely action to raise capital and mitigate the risk as the economic outlook remains uncertain in the medium term. …

Coronavirus outbreak: S&P says pandemic to deteriorate asset quality of lenders; cuts Axis Bank, ICICI Bank outlook
4 years, 11 months ago

Coronavirus outbreak: S&P says pandemic to deteriorate asset quality of lenders; cuts Axis Bank, ICICI Bank outlook

Firstpost  

Kotak Mahindra Bank’s robust capitalisation, strong management, and better than peers asset quality was also appreciated while affirming the ratings. Mumbai: The COVID-19 pandemic will lead to a deterioration in asset quality for Indian lenders, global ratings agency Standard & Poor’’s said on Friday, cutting its outlook on private sector lenders Axis Bank and ICICI Bank to “negative”. “The negative …

COVID-19 impact: Moody's changes outlook on Indian banks to negative from stable; move triggered by disruption in economic activity
4 years, 11 months ago

COVID-19 impact: Moody's changes outlook on Indian banks to negative from stable; move triggered by disruption in economic activity

Firstpost  

Moody’s said Banks’ asset quality will deteriorate across the corporate, small and medium enterprises and retail segments, leading to pressure on profitability and capital. Moody’s Investors Service on Thursday changed the outlook for Indian banking system to negative from stable, as it expects deterioration in banks’ asset quality due to disruption in economic activity from the coronavirus outbreak. On Thursday, …

COVID-19 impact: Moody’s changes outlook on Indian banks to negative
4 years, 11 months ago

COVID-19 impact: Moody’s changes outlook on Indian banks to negative

The Hindu  

Moody’s Investors Service on Thursday changed the outlook for Indian banking system to negative from stable, as it expects deterioration in banks’ asset quality due to disruption in economic activity from the Coronavirus outbreak. Disruptions to economic activity from the coronavirus outbreak will exacerbate a slowdown in India’s economic growth,” Moody’s said. “Growing solvency stress among non-bank financial institutions will …

A battered IndusInd Bank lays bare RBI’s financial stability challenge
4 years, 11 months ago

A battered IndusInd Bank lays bare RBI’s financial stability challenge

Live Mint  

India’s private sector banks are facing their toughest test yet with a virus outbreak putting their earnings at risk, even as the collapse of a peer bank raises questions on deposits. The bank’s stock dropped 15% on Tuesday after the lender revealed in an investor call that it has lost 10-11% of its deposits since Yes Bank Ltd crumbled earlier …

India's financial system stable despite weakening economic growth, says RBI
5 years, 2 months ago

India's financial system stable despite weakening economic growth, says RBI

India Today  

India's financial system remains stable even after economic growth plummeted to a six-year low, the Reserve Bank of India said on Friday. "Reviving the twin engines of consumption and investment while being vigilant about spillovers from global financial markets remains a critical challenge going forward," the central bank said in its bi-annual Financial Stability Report released on Dec. 27. State-owned …

Risk of contagion in Indian financial sector rising; failure of any large finance firm will adversely impact economic growth: S&P
5 years, 5 months ago

Risk of contagion in Indian financial sector rising; failure of any large finance firm will adversely impact economic growth: S&P

Firstpost  

New Delhi: The Indian financial sector is facing the rising risk of contagion and failure of any large finance company will adversely impact economic growth, S&P Global Ratings said in a report on Wednesday. The failure of any large non-banking financial company or housing finance company may deliver a solvency shock to lenders,” said S&P Global Ratings credit analyst Geeta …

No need to panic, Indian banking system safe: RBI
5 years, 5 months ago

No need to panic, Indian banking system safe: RBI

India TV News  

The Reserve Bank on Tuesday assured the general public that the Indian banking system is safe and stable and there is no need for panic based on rumours. The RBI statement came on a day when the Nifty Bank index tanked by 1.30 per cent in intra-day trade amid a barrage of negative news from the sector, including a deepening …

No need to panic, Indian banking system safe: RBI
5 years, 5 months ago

No need to panic, Indian banking system safe: RBI

India Today  

The Reserve Bank on Tuesday assured the general public that the Indian banking system is safe and stable and there is no need for panic based on rumours. The RBI statement came on a day when the Nifty Bank index tanked by 1.30 per cent in intra-day trade amid a barrage of negative news from the sector, including a deepening …

Opinion | An easy surrender of the country’s economic defences
5 years, 6 months ago

Opinion | An easy surrender of the country’s economic defences

Live Mint  

The global economy is admittedly in a strange place and even the usually reliable experts are struggling to decode an evolving economy and the central bank’s place in it. To address this new normal, we are conducting a public review of our monetary policy strategy, tools, and communications.” Coincidentally, the same day Lawrence Summers and Anna Stansbury published a Project …

RBI Financial Stability Report: There is good news and bad news, but where is the plan of action?
5 years, 8 months ago

RBI Financial Stability Report: There is good news and bad news, but where is the plan of action?

Firstpost  

The Financial Stability Report is a very important document on the financial sector as it analyses threadbare the overall state of the various segments as well as highlights the risk-related issues that have been identified which can cause potential challenges. The FSR is happy with the state of the banking system as the gross non performing asset ratio is 9.3 …

RBI to have fresh look at NBFC supervision: All you need to know about what's ailing India's shadow banking sector
5 years, 9 months ago

RBI to have fresh look at NBFC supervision: All you need to know about what's ailing India's shadow banking sector

Firstpost  

Many large NBFCs have come under severe liquidity pressure, compelling them to bring down their reliance on commercial papers following series of default by group companies of IL&FS Concerned over the stress in the NBFC sector, RBI Governor Shaktikanta Das on Saturday said there is a need to have a fresh look at the regulation as well as supervision, and …

Resolving India’s banking crisis
5 years, 10 months ago

Resolving India’s banking crisis

The Hindu  

The government that assumes office after the general election will have to crack a serious and unresolved problem: India’s banking sector. Public sector banks accounted for ₹8.9 trillion, or 86%, of the total NPAs. In 2018, the State Bank of India’s gross NPA/gross advances ratio was 10.9%. Second, the government must infuse at one go whatever additional capital is needed …

Lowering capital buffer detrimental to banks, economy: RBI
6 years, 2 months ago

Lowering capital buffer detrimental to banks, economy: RBI

Live Mint  

Mumbai: The Reserve Bank on Friday warned that with high bad loans and inadequate provisioning to cover the same, any relaxation in the regulatory capital requirement or risk-weights could be detrimental to banks in particular and the economy in general. The Basel III norms recommend risk-weights for various credit exposures, based on cumulative default rates and recovery rates observed internationally. …

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