(An Autonomous Apex Institute Established by RBI & Banks)
(An Autonomous Apex Institute Established by RBI & Banks)
As Indian banks are becoming bigger due to consolidation and through business expansion, it is necessary to adopt the advanced Basel III version for better utilisation of scarce capital and improve efficiency. The importance of Basel III internal ratings-based approach that may be adopted by the banks to strengthen their internal credit risk management framework is highlighted in this article. A better understanding of risk inherent in business will not only improve the banks’ underwriting standards but also enable them to accelerate growth and enhance risk adjusted performance.