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Discover acquisition would push share of assets with 100% risk-weight to six-year high, pro forma analysis shows

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Forecast from US regional much tamer than increases expected by advanced-approach banks

One of the key developments of 2023 was the RBI applying the brakes on unsecured and small-ticket loans by raising the risk weights. This has been seen as the central bank proactively managing the excess growth of small loans before asset quality worsens in this category.

The RBI has said that while a closely linked financial system is efficient and desirable, such links must be monitored as they can also become sources of stress at best and of instability at worst.