- News>
- Finance & Markets
RBI identifies eight banks for risk-based supervision
New Delhi, Dec 21: RBI has identified eight banks for the implementation of risk based supervision (RBS) on a pilot basis as part of efforts to mitigate risks in view of growing integration of domestic markets with external ones.
New Delhi, Dec 21: RBI has identified eight banks
for the implementation of risk based supervision (RBS) on a
pilot basis as part of efforts to mitigate risks in view of
growing integration of domestic markets with external ones.
"Eight banks representing a mix of banks in the public
sector, private sector and foreign banks have been identified
for implementation of RBS on a pilot basis," the Centre said
in its action taken report on the recommendations of the joint
parliamentary committee that probed the stock scam of 2001.
Highlighting that the compilation of risk profiles of the selected banks had commenced, it said the pilot RBS inspection was being taken up independently after the annual financial inspections of these banks had been completed.
Asserting that RBS would be a continuous process, the report said, "on the basis of experience gained in the pilot exercise, approach (of RBS) will be further finetuned."
Cautioning that irregularities could be minimised if proper risk management was in place, JPC had said, "RBI must ensure that risk based approach to supervision is implemented expeditiously so that commercial banks have a comprehensive risk management system, including risk-based auditing."
ATR said training programmes on risk management and risk-based supervisions had been conducted in RBI training institutions since June 2002.
On JPC's observation on "financial frauds", Centre, in its ATR, confirmed that RBI has received suggestions from central vigilance commissioner on a well defined role in monitoring frauds to be assigned to the board of the bank for fixing the accountability.
Bureau Report
Highlighting that the compilation of risk profiles of the selected banks had commenced, it said the pilot RBS inspection was being taken up independently after the annual financial inspections of these banks had been completed.
Asserting that RBS would be a continuous process, the report said, "on the basis of experience gained in the pilot exercise, approach (of RBS) will be further finetuned."
Cautioning that irregularities could be minimised if proper risk management was in place, JPC had said, "RBI must ensure that risk based approach to supervision is implemented expeditiously so that commercial banks have a comprehensive risk management system, including risk-based auditing."
ATR said training programmes on risk management and risk-based supervisions had been conducted in RBI training institutions since June 2002.
On JPC's observation on "financial frauds", Centre, in its ATR, confirmed that RBI has received suggestions from central vigilance commissioner on a well defined role in monitoring frauds to be assigned to the board of the bank for fixing the accountability.
Bureau Report