Indian banks currently still use the incurred loss model, which the RBI says delays NPA identification, loan reclassification, and provisioning.
January 17, 2023RBI stress tests for credit risk showed that commercial banks can meet minimum capital requirements even under severe stress situations.
January 8, 2023The RBI tightened rules that require banks to factor borrowers' unhedged foreign currency exposures into their credit-granting and loss-provisioning decisions.
October 21, 2022Norms that apply to commercial banks on disclosing NPA and provisioning divergences are being tightened, and extended to UCBs.
October 19, 2022Authorities should adopt a positive CCyB rate in normal times. A report evaluating the impact and effectiveness of implemented Basel reforms has also been released.
October 7, 2022IFRS 9 will prompt a one-off increase in banks' loan-loss provisioning, diminishing shareholder capital. Banks will also be pressured by increased taxes.
July 19, 2022Banks were initially due to use the ECL approach to estimate and provision for credit losses from 1 April 2018, but the RBI had deferred implementation.
June 28, 2022The new provisioning rules are part of a new regulatory framework for NBFCs that takes effect on 1 October.
June 10, 2022Supervisors are concerned that residual support measures may be masking true credit risk conditions in the banking sector, the BCBS says.
March 8, 2022The new norms would have led to a spike in non-performing assets for NBFCs and, hence, higher provisioning.
February 23, 2022