(An Autonomous Apex Institute Established by RBI & Banks)
(An Autonomous Apex Institute Established by RBI & Banks)
NIBM working paper series is an initiative to disseminate the initial research outcome of NIBM faculty members. The major research areas are Finance, International Finance, Credit Risk, Market Risk, Operational Risk, Treasury, Agricultural Finance, Economics, Marketing, Strategy, Operations Management, Analytics, Information Systems, and Human Resource Management within the broad areas of banking and finance. These research works are not peer-reviewed. The idea is to share the research outcomes to receive comments and suggestions. Some of the papers are expected to be under review for possible publications in peer-reviewed journals. Any citation of these research papers requires to mention of the appropriate URL with the source, and the date of access.
Paper Number: WP51/2025
Publication Year: March 2025
Authors:
Gargi Sanati, gargi@nibmindia.org
Manoel Pacheco and Akash Supare
This paper examines the integration of the Indian FX Swap market, highlighting liquidity risk that can spill from international to domestic markets and may affect the liquidity across different tenors of the FX Swap segment. This paper argues that even under a managed float exchange rate or pegged exchange …
Paper Number: WP49/2024
Publication Year: December 2024
Authors:
Smita Roy Trivedi, smita@nibmindia.org
Aditi N Kakade
In the context of the ‘Internal Risk Assessment Guidance for Money Laundering/Terrorist Financing Risks’ issued by Reserve Bank of India on October 10th, 2024 which focus on a risk based and data driven approach on fraud monitoring, we argue why the need for a risk-based system and why banks …
Paper Number: WP50/2024
Publication Year: December 2024
Authors:
Gargi Sanati
Rajesh Ramakrishnan, r.rajesh@nibmindia.org
Despite the significant contribution of the MSMEs they face critical funding issues in the entire supply chain process and are often at the mercy of the large corporates or the big manufacturers. MSMEs are not only financially weaker with difficulties in sourcing capital but they are charged heavily by …
Paper Number: WP48/2024
Publication Year: October 2024
Authors:
Dr Abhijit Biswas & Dr Arindam Bandyopadhyay
There is an increased focus by globally best-practiced banks on sustainable finance to align their portfolios with climate goals, particularly in reducing carbon emissions. The Implied Temperature Rise (ITR) indicator is a climate health metric for investment decisions. This article illustrates how ITR acts as a forward-looking metric that …
Paper Number: WP47/2024
Publication Year: August 2024
Authors:
Richa Verma Bajaj, richa@nibmindia.org
The new and revised guidance note issued on April 30, 2024 on Operational Risk Management and Operational Resilience, is in response to the sound practice principles issued by Basel Committee for Operational Risk Management and Operational Resilience in 2021. These are on account of growing dependency of regulatory entities …
Paper Number: WP46/2024
Publication Year: May 2024
Authors:
Tasneem Chherawala, tasneem@nibmindia.org
Gargi Sanati
This study explores the concentration-stability nexus in the context of a spurt of restructuring mergers that have taken place in the Indian banking sector in the recent past. Using the contingent claims approach (Merton, 1974), we measure the vulnerability of the financial system over time as well as constituent …
Paper Number: WP45/2024
Publication Year: May 2024
Authors:
Naveen Kumar K, naveen@nibmindia.org
V S Kaveri
Narul Shah
The transformative potential of cash flow-based lending (CFBL) in addressing the working capital needs of Micro, Small, and Medium Enterprises (MSMEs). The research paper investigates the concept and process of CFBL, emphasizing its importance for MSMEs in accessing timely financing solutions. It analyzes why the adoption of CFBL is …
Paper Number: WP44/2024
Publication Year: May 2024
Authors:
Tasneem Chherawala, tasneem@nibmindia.org
Our paper designs a forward-looking, default probability measure to quantify transition risk for carbon-intensive companies. We establish using this metric for Indian steel companies, that extreme transition shocks from global climate mitigation policies, can substantially worsen firm-level credit risk. The extent of impact depends upon the company’s unique profile …
Paper Number: WP43/2024
Publication Year: May 2024
Authors:
Tasneem Chherawala, tasneem@nibmindia.org
On May 3, 2024, the Reserve Bank of India (RBI) issued draft directions for income recognition, asset classification and provisioning (IRACP) pertaining to advances towards projects under implementation (RBI, 2024). These are applicable for all regulated entities in the financial sector in the business of project finance for large …
Paper Number: WP42/2024
Publication Year: April 2024
Authors:
Smita Roy Trivedi, smita@nibmindia.org
Rajesh Ramakrishnan
In international trade finance, the Letter of credit (LC) has a key role to play in risk mitigation. However, the Letter of credit is a complex instrument, and guidelines from the International Chamber of Commerce (ICC) in the form of Uniform Customs and Practice for Documentary Credits (UCP-600) as …
