nbfc loans: Risk weights on AAA NBFC loans doubles to 45%
Tighter Reserve Bank of India norms mean that the bank risk weights on loans for AAA NBFCs have now more than doubled to 45% from 20% earlier, while those for AA-rated NBFCs have increased to 55% from 30% and for A- rated NBFCs to 75% from 50% earlier. Higher risk weights require banks to set aside more capital to provide cover against such loans.
Karthik Srinivasan Tighter Reserve Bank Reserve Bank Nbfc Loans Non Banking Finance Companies Risk Weights
Source: indiatimes.com