https://www.taxtmi.com/news?id=20704 Banks act as delegated monitors using covenants and enforcement to limit defaults; the IBC and RBI's Revised Framework shift power to creditors and tailor remedies to borrowers' ability and willingness to pay. Prudential capital absorbs unexpected losses beyond provisioning. Given higher observed cumulative default rates and loss-given-default in India, regulators maintain a higher minimum capital floor (CRAR 9%, CET1 5.5%) rather than recalibrating risk weights alone, and require provisioning floors until recovery metrics improve. en-us Sat, 03 Nov 2018 17:07:50 +0530 Wed, 11 Feb 2026 15:57:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=20704 Banks act as delegated monitors using covenants and enforcement to limit defaults; the IBC and RBI's Revised Framework shift power to creditors and tailor remedies to borrowers' ability and willingness to pay. Prudential capital absorbs unexpected losses beyond provisioning. Given higher observed cumulative default rates and loss-given-default in India, regulators maintain a higher minimum capital floor (CRAR 9%, CET1 5.5%) rather than recalibrating risk weights alone, and require provisioning floors until recovery metrics improve. News - Sat, 03 Nov 2018 17:07:50 +0530 https://www.taxtmi.com/news?id=20704