Banks can include reserves held abroad in level 1 assets

By:  , August 3, 2017 

The Reserve Bank of India (RBI) on Wednesday said Indian banks will be allowed to include in their level 1 assets reserves held with foreign central banks in excess of the reserve requirement in the host country, where a foreign sovereign has been assigned a 0% risk weight as per rating by an international rating agency.
In cases where a foreign sovereign has been assigned a non-0% risk weight as per rating by an international rating agency, but a 0% risk weight has been assigned at national discretion under Basel II framework, reserves held with the central banks in excess of the reserve requirement will qualify as Level 1 assets only to the extent these balances cover the bank’s stressed net cash outflows in that specific currency.

Comments

Popular posts from this blog

Govt allows lateral hiring of experts, 10 top posts on offer

India and Mexico get an early taste of the ‘Bank of Amazon’