Monday, January 16, 2023

RBI's new proposal on loan loss provisions to raise bank capital needs

On Monday evening, the Reserve Bank of India released the paper proposing a shift away from the current method - where loan loss provisions are made after a default - to one where banks will need to assess the probability of default upfront and provision accordingly. If implemented, banks will be given at least a year to transition, it said.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/rbis-new-proposal-on-loan-loss-provisions-to-raise-bank-capital-needs/articleshow/97045904.cms

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