Mint Explainer: Why RBI raising risk weights for consumer loans is significant
Tightened regulations to impact capital ratios and lending rates
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Tightened regulations to impact capital ratios and lending rates
New division established post Credit Suisse acquisition partly responsible for $785m quarterly loss
Constraints on real-estate exposure modelling result in Pillar 2 charges moving to Pillar 1 requirements
In the recent MPC meeting, member Ashima Goyal said a sudden rise in Indian household debt could be a concern, as per the minutes of the meeting released on Friday. "Prudential tightening, such as raising LTV ratios or risk weights, would be preferable to raising policy rates ... After the firm lending-based NPAs, most banks are trying to increase retail loans. These are secured or based on cash or salary flows. But it will help make sure lending continues to be risk-based and internal assessments are robust," Goyal said.
JP Morgan drives shift, shedding more than $65 billion in risk-free exposures