Risk Minimisation – in the Last 5 Years by Rbi
TOPIC: RISK MINIMISATION – In the last 5 years by RBI
LITERATURE REVIEW:
Amidst an adverse external environment, the Indian economy during 2011-12 traversed a difficult terrain characterised by inflationary pressures, growth slowdown and deteriorating fiscal and external sector balances. Against the backdrop of a difficult macroeconomic setting, monetary policy had the difficult task of reining in inflation, arresting the growth slowdown, providing adequate liquidity in the system to ensure non-disruptive functioning of the financial markets and containing volatility in the forex market. The Reserve Bank continued to maintain an anti-inflationary stance up till mid-December 2011. With the emerging evidence on growth slowdown, the Reserve Bank front-loaded its action and cut the policy rates in April 2012, before reverting to pause mode in the wake of persisting inflationary pressures.
The Indian banking industry has largely remained insulated from the global financial turbulence. The global crisis brought to the fore the flaws in the Basel II prudential regulatory framework, micro-supervisory approach and its procyclical nature. Though the need for reorienting prudential policies to have a macro dimension was recognised the world over after the crisis of 2008, India was well ahead in adopting macro-prudential policies even before the crisis. Nonetheless, in the light of lessons from the global financial crisis, the Reserve Bank has been constantly reviewing and refining its regulatory and supervisory policies to ensure a strong capital base, effective risk management and best corporate governance standards in the banking sector. In recent years, the focus has also been on improving credit delivery, customer service and promoting financial inclusion.
Basel II To strengthen the financial stability framework, the Reserve Bank of India (RBI) initiated several steps which included enhanced focus on systemic stability issues. The implementation of advanced
LITERATURE REVIEW:
Amidst an adverse external environment, the Indian economy during 2011-12 traversed a difficult terrain characterised by inflationary pressures, growth slowdown and deteriorating fiscal and external sector balances. Against the backdrop of a difficult macroeconomic setting, monetary policy had the difficult task of reining in inflation, arresting the growth slowdown, providing adequate liquidity in the system to ensure non-disruptive functioning of the financial markets and containing volatility in the forex market. The Reserve Bank continued to maintain an anti-inflationary stance up till mid-December 2011. With the emerging evidence on growth slowdown, the Reserve Bank front-loaded its action and cut the policy rates in April 2012, before reverting to pause mode in the wake of persisting inflationary pressures.
The Indian banking industry has largely remained insulated from the global financial turbulence. The global crisis brought to the fore the flaws in the Basel II prudential regulatory framework, micro-supervisory approach and its procyclical nature. Though the need for reorienting prudential policies to have a macro dimension was recognised the world over after the crisis of 2008, India was well ahead in adopting macro-prudential policies even before the crisis. Nonetheless, in the light of lessons from the global financial crisis, the Reserve Bank has been constantly reviewing and refining its regulatory and supervisory policies to ensure a strong capital base, effective risk management and best corporate governance standards in the banking sector. In recent years, the focus has also been on improving credit delivery, customer service and promoting financial inclusion.
Basel II To strengthen the financial stability framework, the Reserve Bank of India (RBI) initiated several steps which included enhanced focus on systemic stability issues. The implementation of advanced