(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 These research works are not peer-reviewed.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: WP23/2022
Publication Year: November 2022
Authors:
Dipali Krishnakumar, k.dipali@nibmindia.org
The Reserve Bank of India has tightened the norms for disclosure of divergence on asset classification and provisioning by commercial banks and also made disclosure norms applicable to Primary (Urban) Co-operative Banks (UCBs). This article describes the concept of divergence, discusses typical reasons for divergence, provides an analysis on …
Paper Number: WP22/2022
Publication Year: July 2022
Authors:
Gargi Sanati, gargi@nibmindia.org
To promote global trade in an inexact settlement mechanism experienced by Russia, RBI has allowed the invoicing and settlement of exports/imports in rupee. In the backdrop of the US sanction on the Central Bank of Russia, the move towards INR settlement is not only a timely move to protect …
Paper Number: WP21/2022
Publication Year: July 2022
Authors:
Kedar nath Mukherjee, keder@nibmindia.org
Investments in various segments of/instruments available in the financial market made by the commercial banks play a very crucial role not only in achieving the return target of banks and managing their liquidity but also in the overall growth and development of the financial market in bank driven and …
Paper Number: WP20/2022
Publication Year: June 2022
Authors:
M Manickaraj, manick@nibmindia.org
Elizabeth James
The Reserve Bank of India (RBI) has allowed scheduled commercial banks (SCBs) and small finance banks (SFBs)to lend money to Non-Banking Finance Companies (NBFCs) and NBFFC – Micro Finance Institutions (NBFC-MFIs) respectively for the purpose of on-lending to the priority sectors. As per the Master Directions on Priority Sector …
Paper Number: WP 19/2022
Publication Year: June 2022
Authors:
Jiji T Mathew, jiji@nibmindia.org
This paper focuses on RBI’s post-covid monetary policy and liquidity measures and its effects on money, bond, deposit and credit markets in terms of interest rate transmission. The first objective of this study is to discuss and assess the various conventional and unconventional policy measures introduced by RBI since …
Paper Number: WP18/2022
Publication Year: May 2022
Authors:
Smita Roy Trivedi, smita@nibmindia.org
The “unscheduled” Monetary Policy Committee (MPC) announcement by Reserve Bank of India on May 2nd, 2022 marked a hike in repo rate by 40 basis points and a ‘withdrawal of accommodative stance’. This was followed by a sharp fall in Indian equity indices. The depreciation of rupee that has …
Paper Number: WP 17/2022
Publication Year: May 2022
Authors:
Naveen Kumar K, naveen@nibmindia.org
Sarita Bhatnagar
Financial inclusion facilitates households’ access to and use of financial services and thereby improves their socio-economic wellbeing. Several policy attempts are being made in India to reach the financially excluded segments of society through formal institutions. Cooperative banks have played a critical role in the countryside to reach the …
Paper Number: WP 16/2022
Publication Year: May 2022
Authors:
Sanjay Basu, sbasu@nibmindia.org
The comprehensive RBI Master Circular on Basel III Capital Regulations, dated 1st April 2022, retains most of the guidelines covered by the previous Master Circular dated 1st July 2015. It prefers to continue with Basel II-style Standardized Approaches, for all risk categories. However, it includes the Large Exposure Framework …
Paper Number: WP 15/2022
Publication Year: April 2022
Authors:
Arindam Bandyopadhyay, arindam@nibmindia.org
Ensuring the financial soundness of the Urban Cooperative Banks (UCBs) is crucial for protecting the interests of its depositors and other stakeholders. The capital adequacy ratio is considered an internationally recognized benchmark for measuring bank solvency. This has been popularized by the Basel Committee for Banking Supervision. The regulatory …
Paper Number: WP/14/2022
Publication Year: April 2022
Authors:
Sanjay Basu, sbasu@nibmindia.org
Much of the literature on banking focuses on the value of relationship loans to lowquality firms. However, we show that under private information and incomplete contracts, bank-firm matching may be positively assortative. If the costs of monitoring a low quality borrower are higher than the subsequent gain from pairing …
