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Part VII: Financial Systems
management of risks and the new rules will provide a range of
options for estimating the regulatory capital and will reduce
the gap between regulatory capital and economic capital.
The three pillars of the norms require certain preparatory
factors. The RBI advises Indian banks to keep a standardized
credit measurement, basic-indicator approach for assessing
operational risks, lower risk weights for short-term assets,
skill development both at the RBI as well as bank levels,
improved supervisory methods, comprehensive disclosure
requirements supported by IT structure with technological
focus on scalability, availability, security and generation of
management information system. The Indian banks operating ...