Tuesday, December 3, 2013

Central bank for gradual phasing-in of CCCB

The RBI on Monday placed on its website a draft report for implementing the countercyclical capital buffer (CCCB) framework. The report suggests the need for setting aside upto 2.5% of risk-weighted assets based on the credit-to-GDP ratio and growth in gross NPAs of banks. "Lower threshold of CCCB when the buffer is activated may be set at 3 percentage points of the credit-to-GDP gap, provided its relationship with GNPA remains significant and the upper threshold may be kept at 15 percentage points of credit-to-GDP gap," the report says. .......

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