https://www.taxtmi.com/news?id=19376 Banks' concentrated holdings of domestic sovereign debt create a reciprocal sovereign-bank linkage that amplifies interest rate and credit risks. In India, the Statutory Liquidity Ratio and increased duration of G Sec issuance have left banks, especially public sector banks, materially exposed; accounting classifications (Held to Maturity, Available for Sale) shape recognition of valuation changes. Effective management requires Board approved risk capital limits, stress and reverse stress tests, concentration and stop loss controls, accountability for treasury risk taking, and deeper participation in interest rate derivatives to enable hedging and market discipline. en-us Tue, 16 Jan 2018 12:16:35 +0530 Wed, 11 Feb 2026 15:57:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=19376 Banks' concentrated holdings of domestic sovereign debt create a reciprocal sovereign-bank linkage that amplifies interest rate and credit risks. In India, the Statutory Liquidity Ratio and increased duration of G Sec issuance have left banks, especially public sector banks, materially exposed; accounting classifications (Held to Maturity, Available for Sale) shape recognition of valuation changes. Effective management requires Board approved risk capital limits, stress and reverse stress tests, concentration and stop loss controls, accountability for treasury risk taking, and deeper participation in interest rate derivatives to enable hedging and market discipline. News - Tue, 16 Jan 2018 12:16:35 +0530 https://www.taxtmi.com/news?id=19376