Wednesday, May 21, 2014

RBI for 20% credit enhancement by banks to corporate bonds

......The limit on partial credit enhancement will be set at whichever is lower---20 per cent credit enhancement or the funds needed to raise the rating by two notches. Banks should adopt a board-approved policy on partial credit enhancements, covering issues such as assessment of risk and setting limits, RBI said in its draft norms released on Tuesday.............

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