The Reserve Bank of India (RBI) recognizes the importance of risk management in the banking sector. In 1999, RBI issued guidelines for banks regarding asset liability management and managing credit, market, and operational risks. The major risks banks face are liquidity risk, interest rate risk, market risk, credit or default risk, and operational risk. RBI evaluates banks' financial soundness using the CAMELS framework, which assesses capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk. RBI's guidelines require banks to establish comprehensive risk rating systems, develop value at risk methodologies, and integrate asset liability management and credit policy activities to better manage risks.
This presentation is the one stop point to learn about Basel Norms in the Banking
This is the most comprehensive presentation on Risk Management in Banks and Basel Norms. It presents in details the evolution of Basel Norms right form Pre Basel area till implementation of Basel III in 2019 along with factors and reason for shifting of Basel I to II and finally to III.
Links to Video's in the presentation
Risk Management in Banks
https://www.youtube.com/watch?v=fZ5_V4RW5pE
Tier 1 Capital
http://www.investopedia.com/terms/t/tier1capital.asp
Tier 2 Capital
http://www.investopedia.com/terms/t/tier2capital.asp
Basel I
http://www.investopedia.com/terms/b/basel_i.asp
Capital Adequacy Ratio
http://www.investopedia.com/terms/c/capitaladequacyratio.asp
Basel II
http://www.investopedia.com/video/play/what-basel-ii/?header_alt=c
Basel III
http://www.investopedia.com/terms/b/basell-iii.asp
RBI Governor - Raghuram G Rajan on the importance if Basel III regulations
https://youtu.be/EN27ZRe_28A
In this article how risk management in banks is an important concept, what type of risks banks faces and how they curb it through risk management model is described
This presentation is the one stop point to learn about Basel Norms in the Banking
This is the most comprehensive presentation on Risk Management in Banks and Basel Norms. It presents in details the evolution of Basel Norms right form Pre Basel area till implementation of Basel III in 2019 along with factors and reason for shifting of Basel I to II and finally to III.
Links to Video's in the presentation
Risk Management in Banks
https://www.youtube.com/watch?v=fZ5_V4RW5pE
Tier 1 Capital
http://www.investopedia.com/terms/t/tier1capital.asp
Tier 2 Capital
http://www.investopedia.com/terms/t/tier2capital.asp
Basel I
http://www.investopedia.com/terms/b/basel_i.asp
Capital Adequacy Ratio
http://www.investopedia.com/terms/c/capitaladequacyratio.asp
Basel II
http://www.investopedia.com/video/play/what-basel-ii/?header_alt=c
Basel III
http://www.investopedia.com/terms/b/basell-iii.asp
RBI Governor - Raghuram G Rajan on the importance if Basel III regulations
https://youtu.be/EN27ZRe_28A
In this article how risk management in banks is an important concept, what type of risks banks faces and how they curb it through risk management model is described
NPA - Non Performing Assets by Meka SantoshSantosh Meka
NPA which is gobal problem for the banks with the borrower who they not pay money back to the banks with the given period of time.The silde have been describing toward INDIAN bank. More over it includes the impact, problem, solution and action taken by RBI and Govt of India to solve the issue of NPA.
This presentations chalks out in detail information about ALM in Indian Bank. It starts with the basics of Balance sheet; applicability of ALM in real life; Evolution and then starts with main topics of ALM like structured statement; Liquidity risk, its management; currency risk and finally ends with Interest Risk management.
Links to Video’s in the ppt
Balance Sheet
http://www.investopedia.com/terms/b/balancesheet.asp
NII/NIM
http://www.investopedia.com/terms/n/netinterestmargin.asp
www.abhijeetdeshmukh.com
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
NPA - Non Performing Assets by Meka SantoshSantosh Meka
NPA which is gobal problem for the banks with the borrower who they not pay money back to the banks with the given period of time.The silde have been describing toward INDIAN bank. More over it includes the impact, problem, solution and action taken by RBI and Govt of India to solve the issue of NPA.
This presentations chalks out in detail information about ALM in Indian Bank. It starts with the basics of Balance sheet; applicability of ALM in real life; Evolution and then starts with main topics of ALM like structured statement; Liquidity risk, its management; currency risk and finally ends with Interest Risk management.
Links to Video’s in the ppt
Balance Sheet
http://www.investopedia.com/terms/b/balancesheet.asp
NII/NIM
http://www.investopedia.com/terms/n/netinterestmargin.asp
www.abhijeetdeshmukh.com
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
The Reserve Bank of India performs its supervision functions under the guidance of the Board for Financial Supervision (BFS). Board of Financial Supervision(BFS), is the supporting department of RBI. It's support to RBI for regulating the monetary policy as well as controlling the Banking, Non-banking institutions.Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
2. WHAT IS RISK MANAGMENT?
In the world of finance, risk
management refers to the
practice of identifying potential
risks in advance, analyzing them
and taking precautionary steps to
reduce/curb the risk.
3. What is Risk Management in Indian Banking
Sector and the role of RBI:
RBI in 1999 recognized the need of an
appropriate risk management and issued
guidelines to banks regarding assets
liability management, management of credit,
market and operational risks.
4. Type of Risks:
The major risks in banking business as commonly
referred can be broadly classified into:
• Liquidity Risk
• Interest Rate Risk
• Market Risk
• Credit or Default Risk
• Operational Risk
5. Role of RBI in Risk Management
in Banks:
Here, we will discuss the role of RBI in Risk Management and how the
tools called CAMELS was used by RBI to evaluate the financial
soundness of the Banks. CAMELS is the collective tool of six
components namely
• Capital Adequacy
• Asset Quality
• Management
• Earnings Quality
• Liquidity
• Sensitivity to Market risk
6. • The CAMEL was recommended for the financial soundness of
bank in 1988 while the sixth component called sensitivity to
market risk (S) was added to CAMEL in 1997.
• RBI in 1999 recognized the need of an appropriate risk
management and issued guidelines to banks regarding assets
liability management, management of credit, market and
operational risks. The entire supervisory mechanism has been
realigned since 1994 under the directions of a newly
constituted Board for Financial Supervision (BFS), which
functions under the aegis of the RBI, to suit the demanding
needs of a strong and stable financial system.
• A process of rating of banks on the basis of CAMELS in respect
of Indian banks and CACS (Capital, Asset Quality, Compliance
and Systems & Control) in respect of foreign banks has been put
in place from 1999.
7.
8. CONTD….
• Banks to set up a comprehensive risk rating systems for
counter parties.
• Banks have to fix a definite time frame for moving over to value
at risk.
• By Mar 2001 banks with international presence have to develop
methodologies for estimating and maintaining economic capital.
• Banks should evaluate portfolio quality on an on-going basis
instead of near balance sheet date.
• Investment proposals to be subjected to same credit risk
analysis as in the case of loan proposals.
9. CONTD..
• Investment proposals to be included in the total risk evaluation.
• For off balance sheet exposure the current and potential credit
exposure to be measured on a daily basis.
• Activities of ALCO ( asset, liquidity committee) and credit policy
committee should be integrated.
• For managing liquidity risk banks should place limits on inter
bank borrowings.
• Banks have to provide a contingency plan to meet adverse
swings in liquidity conditions.