Reserve Bank of India proposes lenders to adopt expected loss-based approach for loan loss provisioning

"The inadequacy of the incurred loss approach for provisioning by banks and its procyclicality, which amplified the downturn following the financial crisis of 2007-09, has been extensively documented. One of the major elements of the global response to these findings have been a shift to expected credit loss (ECL) regime for provisioning," the central bank said in the statement on developmental and regulatory policies.

from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/2dfU8lK
via IFTTT

Comments

Post a Comment

Popular posts from this blog

India's Paytm Payments Bank granted status upgrade

Image
Paytm Payments Bank, a niche bank that cannot lend on its own, had more than 64 million savings accounts and over 52 billion Indian rupees ($688.5 million) deposits, including savings accounts, current accounts and fixed deposits with partner banks at the end of March this year. from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/3pJr1JN via IFTTT
Read more