Wednesday, 2 April 2014

INROADS


  • A dynamic risk-based rating mechanism.
  •  RBI is of the view, the earlier rating(CAMELS) does not capture the risks that could cause a bank to fail.
  • Some of the broader risks, such as credit risk, operational risk, and strategic and business group risk, increase the probability of a bank’s failure would be considered in the new rating system.

Reference: http://www.business-standard.com/article/finance/rbi-sets-stage-for-a-bank-supervision-overhaul-112091300034_1.html

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