RBI's new proposal on loan loss provisions to raise bank capital needs

On Monday evening, the Reserve Bank of India released the paper proposing a shift away from the current method - where loan loss provisions are made after a default - to one where banks will need to assess the probability of default upfront and provision accordingly. If implemented, banks will be given at least a year to transition, it said.

from Banking/Finance-Industry-Economic Times https://ift.tt/WblI5nK