MUMBAI: The Reserve Bank of India (RBI) will come out with the first draft of the post-global financial crisis (GFC) credit risk norms, based on the post-GFC reforms of Basel Committee, by 2020, deputy governor N S Vishwanathan told bankers at the annual banking conference on Tuesday. Detailing the post GFC changes in standardised approach to credit risk, operational risk and changes in the market risk framework, he said bankers would be given time to finalise the framework before the January 1, 2022 deadline.
While emphasizing the need to follow the Basel guidelines, Vishwanathan said that the norms have been calibrated to meet local requirements, taking conservative approach in some instances and consciously deviating in others. He had pointed out the deferment of deadline for banks to fulfill the last tranche of capital conservation buffer by a year from April 2019 to 2020.
Speaking on stressed assets resolution and the revised RBI guidelines, he asked bankers to ensure timely resolution not only for the sake of regulatory requirements, but also because it will lead to better value creation.
The central bank will come out with the final guidelines for private and foreign bankers’ compensation soon, Vishwanathan said.