India Strengthens Banking Regulation
The Reserve Bank of India (RBI) have released their annual report, detailing several supervisory measures that are underway to strengthen India’s banking system.
The aim is to improve India’s credit risk and financial performance, and to increase the flow of credit to productive sectors of the economy.
Included in these measures are draft guidelines on corporate governance in banks and a revised standardised approach for calculating minimum capital requirement for operational risk. This is in order to align India’s current banking regulation with global best practices.
The central bank also plans a number of innovative additions to its existing XBRL-based filing rules.
Subject to legislative amendments the RBI will also align India’s accounting standards for banks and other financial institutions with international norms of the International Financial Reporting Standards (IFRS).
Read more about the new measures here.