RBI issues norms on capital requirements for market risk under Basel III for banks
As of April 1, 2027, banks are prohibited from reclassifying instruments to achieve lower capital requirements under the new market risk guidelines that align with the updated Basel III framework. This transition will see banks adopting a simplified standardized approach for determining risk-weighted assets, along with revisions to interest rate risk tables and the treatment of debt funds.
Key Takeaways
- As of April 1, 2027, banks are prohibited from reclassifying instruments to achieve lower capital requirements under the new market risk guidelines that align with the updated Basel III framework.
- This transition will see banks adopting a simplified standardized approach for determining risk-weighted assets, along with revisions to interest rate risk tables and the treatment of debt funds.
- Full details and original dispatch available below.
As of April 1, 2027, banks are prohibited from reclassifying instruments to achieve lower capital requirements under the new market risk guidelines that align with the updated Basel III framework. This transition will see banks adopting a simplified standardized approach for determining risk-weighted assets, along with revisions to interest rate risk tables and the treatment of debt funds.
Original Publisher Attribution
This summary was curated from Economic Times.