Monthly Bulletin for January 2020 - ஆர்பிஐ - Reserve Bank of India
Monthly Bulletin for January 2020
The Reserve Bank of India today released the January 2020 issue of its monthly Bulletin. The Bulletin includes two speeches by the Top Management, two Articles, Press Release of Working Papers and Current Statistics. The Report on Trend and Progress of Banking in India 2018-19 and Financial Stability Report – December 2019 are being issued with the Bulletin as Supplements. The two Articles are: I. An Assessment of India’s External Debt Sustainability and Vulnerability II. Efficacy of Credit Ratings in Assessing Asset Quality: An Analysis of Large Borrowers. I. An Assessment of India’s External Debt Sustainability and Vulnerability The article examines recent developments in India’s external debt profile and external vulnerability indicators. Highlights
Credit rating agencies (CRAs) are important stakeholders in the implementation of the modern-day financial sector regulatory framework. Agency/external credit ratings are prescribed as part of the regulatory framework for assessing the riskiness of assets and estimating the corresponding capital requirements in banks. Mapping the NPA exposure drawn from the Central Repository of Information on Large Credits (CRILC) with Prowess, the present article analyses the efficacy of external credit ratings in facilitating a sound and timely assessment of the asset quality of large borrowers. Although preliminary, the findings suggest: (a) ratings do not always reflect the underlying asset quality of borrowers in a timely manner; and (b) the ability of ratings to capture the asset quality varies across CRAs. Highlights:
Rupambara Press Release: 2019-2020/1672 |