Role of Macroprudential Reserves in Addressing Event Risks for NBFCs in India (Record no. 530417)
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| 000 -LEADER | |
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| fixed length control field | 01864nam a22001457a 4500 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION | |
| fixed length control field | 250613b ||||| |||| 00| 0 eng d |
| 100 ## - MAIN ENTRY--PERSONAL NAME | |
| Personal name | Nitsure, Rupa Rege |
| 245 ## - TITLE STATEMENT | |
| Title | Role of Macroprudential Reserves in Addressing Event Risks for NBFCs in India |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. (IMPRINT) | |
| Place of publication, distribution, etc | Economic and Political Weekly |
| 300 ## - PHYSICAL DESCRIPTION | |
| Extent | 60(22), May 31, 25: p.91-97 |
| 520 ## - SUMMARY, ETC. | |
| Summary, etc | The macroprudential approach towards attaining financial stability is being adopted the world over. In India, the Reserve Bank of India has been stressing the importance of forward-looking loan loss provisions to hedge against risks in the banks’ balance sheets, thereby enhancing the resilience of both individual banks as well as the banking system. However, the history of financial crises shows that forward-looking provisions based on “expected losses” cannot absorb tail events. To take care of this concern, the RBI has encouraged banks to make countercyclical (floating) provisions that are not based on expected losses as a prudent measure to strengthen their balance sheets. Such provisions are allowed to be used later in extraordinary and unforeseen circumstances. In this paper, it is shown as to how Indian NBFCs are more susceptible to tail events in the given political economic set-up and, hence, should be encouraged to build up macroprudential reserves as the countercyclical buffer against downside risks. Given the growing importance of NBFCs it is essential that the accounting standard setters and regulators work in tandem to facilitate a more meaningful LLP process for NBFCs. - Reproduced https://www.epw.in/journal/2025/22/money-banking-and-finance/role-macroprudential-reserves-addressing-event.html |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM | |
| Topical term or geographic name as entry element | macroprudential approach, non-banking financial companies, NBFCs, countercyclical |
| 9 (RLIN) | 54341 |
| 942 ## - ADDED ENTRY ELEMENTS (KOHA) | |
| Item type | Articles |
| Withdrawn status | Lost status | Source of classification or shelving scheme | Damaged status | Not for loan | Permanent location | Current location | Date acquired | Barcode | Date last seen | Koha item type |
|---|---|---|---|---|---|---|---|---|---|---|
| Indian Institute of Public Administration | Indian Institute of Public Administration | 2025-06-13 | AR136264 | 2025-06-13 | Articles |