30 banks ready for risk-based
supervision
PTI MUMBAI, March
22, 2013
Will be introduced next month and help them assess their risks
in real-time
Thirty large banks have informed the Reserve Bank of India that
they are ready to switch to a new uniform risk-based supervision system from
April 1 , which will enable them to assess their risks in real-time .
“The risk-based supervision system is likely to be implemented
from April 1. The RBI has decided to implement it in 30 large banks. These
banks were called for a meeting today with the RBI,” Indian Banks Association
Chairman and PNB chief K.R. Kamath told reporters here on Thursday.
The new system will bring in a uniform methodology to check the
health of the banking system, as against the CAMESL framework used at
present—which follows a compliance-based and transaction-testing approach.
When asked about the changes the banks will have to bring about,
Mr. Kamath said, “There are many ambiguities today with banks reporting so many
things with their own definitions. The idea is to see that you have one uniform
norm through which everybody can report.”
Others who participated in the meeting included S.S. Mundhra of
Bank of Baroda, Ajai Kumar of Corporation Bank, Shyam Srinivasan of Federal
Bank, ICICI Bank head Chandra Kochhar, HDFC Bank’s Aditya Puri, B.A. Prabhakar
from Andhra Bank and French lender BNP Paribas’ Jacques Michel, among others.
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