RBI’s capital cushion tweak: Tighter norms don’t relieve banks of their need to track market risks
RBI’s latest direction on market risks adopts the simplified standardized approach (SAA). Here, the new capital requirement would be a multiple of the existing capital requirement—which is 1.3 times, 3.5 times and 1.2 times for interest rate risks, equity risks and foreign currency risks, respectively.
