Learning Takeaways

    Recommendations Of The Roundtable On Capacity Building In Banks And Non-Banks (Committee Report)

    A Roundtable to discuss the implementation of recommendation of Report of the Committee on Capacity Building in Banks and non-Banks (Chaired by Shri G Gopalakrishna) was held at CAFRAL on June 18, 2015. The Committee on Capacity Building in banks and non-banks was constituted by the Reserve Bank in this context of recommendations of the Financial Sector Legislative Reforms Commission (FSLRC 2011) pertaining to capacity building in banks and non-banks and streamlining training intervention.
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    GloboKasNet – A Multi-Bank Agent Network In Peru

    GloboKasNet identified the need for and created a successful network of multi-brand agents to banks and corporates in Peru. This paper discusses the factors that went into making the network a success.
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    Implementation Of Advanced Approach (IRB) In Basel II

    The key learnings derived from a two-day program on Implementation of Advanced Approach (IRB) in Basel II; with an objective to help the bankers to develop IRB credit risk models, give guidance on arriving at probability of default (PD), loss given default (LGD) and EAD numbers on the loan asset of a banker and throw light on assessment of the correlation factor amongst borrowings and borrowers. From regulators point of view, obtaining feedback regarding various valuation methods.
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    Monetary Policy And Role Of Banks

    This paper explores some of the domestic and international factors considered by RBI while deciding on the monetary policy and the various monetary policy instruments available to it. It also explores the role banks play in the transmission of these changes to the actual interest rate scenario in the credit markets.
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    Discussion Paper On Mobile And Agency Banking

    Mobile banking is emerging as a major force across the world, with a much larger proportion of the population having access to mobiles than to bank accounts. While on one hand there are examples of rural communities in East Africa using mobile payments to buy water and solar power, on the other hand mobile based apps provide the opportunity to banks to offer a range of services to their customers round-the-clock in a cost effective way. Similarly, banking through agents is rapidly growing as a critical mode of reaching unbanked areas. The rapid advances in technology and customer behaviour are bringing all of the above options of branchless banking, right at the centre of a bank’s strategy for the future.
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    Paper On Funds Transfer Pricing In Banks

    In a bank, the common resource - funds or liquidity is shared by all the business units. Therefore the most important function of Funds Transfer Pricing (FTP) is to provide a basis for the exchange of funds between different business units of a bank. FTP is an internal allocation and measurement mechanism for determining the pricing of incremental loans/investments/deposits and for determining the profit contribution of various lending and borrowing units of a bank. It is critical component of the profitability measurement process, as it allocates the major component of profitability in a bank, Net Interest Margin (NIM). It’s a management decision tool and is useful means to identify the areas of strength and weaknesses within the bank. The objective of this paper is to provide to the banks conceptual clarity on Funds Transfer Pricing and how they should approach it.
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    Paper On Banking Structure For India

    A universal bank licence in India gives a bank the right to access low cost retail deposits, deposit insurance for small depositors, connect to the payment systems and access to liquidity from the central bank. In return for these privileges, there are certain obligations imposed on the bank in the form of maintaining CRR and SLR and fulfilling priority sector lending. This is the grand bargain and differentiated licence is in a sense de-coupling this package that universal banks get. How should the existing banks and non-bank finance companies be made more vibrant to meet the growing needs of the economy and what and how new varieties of banks be permitted such that the banking sector is inherently resilient in the face of a crisis and also responsive to the growing complexity and requirement of the economy?
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    Creating A Customer Centric Organisation

    Kishore Biyani, Chief Executive Officer of Future Group, has successfully created a niche for Big Bazaar in the crowded area of modern retail. He shares how he achieved this by creating an organisational culture that focuses on understanding the customer, engaging the community and motivating employee base.
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    Too Much Of The Wrong Sort Of Capital Flow

    Adair Lord Turner shares his views on what are the links between the causes of global financial crisis and the design of international financial system...
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    Global Liquidity And Financial Contagion

    The recent global financial crisis has highlighted the potential risk to the global economy from financial contagion. Read the views shared by the policy-makers, academicians, government officials, and the eminent global speakers at the CAFRAL-IPD Conference on ‘Capital Account Management and Macro-Prudential Regulation for Financial Stability and Growth”…
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    What Makes A Good Bank?

    Uday Kotak, Executive Vice Chairman and Managing Director, Kotak Mahindra Bank, shares that the three critical factors that make a good bank are prudence, simplicity and humility….
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    Developing And Mentoring Successful Leaders

    ICICI underwent a major transformation under Mr.Kamath's leadership, and during that period produced a large number of leaders, many of whom today head various organisations in the financial sector. He shares how he went about the process of identifying, developing and mentoring leaders....
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    Mass Retail Banking – Learnings From Cross-Country Experience

    Many countries across the world have seen the spread of banking to the mass retail segment through a combination of facilitative regulatory policies and innovation by banks in customising their business models to address the specific needs of this segment. This segment is lucrative enough for a sustainable banking proposition without any subsidies……
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    Role Of Audit Committee Of Banks

    The Board of Directors of a company has the ultimate responsibility for the efficient and smooth running of the organization. Since running an organization entails a huge number of responsibilities, specific powers are delegated to Committees formed for different purposes. One such …
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    Role Of Boards In Banks

    The Board of Directors in any company has people with different expertise, knowledge and priorities. While serving on the Board they need to act as a cohesive whole for the betterment of the institution they are serving, instead on focussing on the groups they represent…
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    Discussion On Working Group On Restructuring Of Advances

    The Reserve Bank of India constituted a Working Group on January 31, 2012 under the Chairmanship of Mr. B. Mahapatra, Executive Director, RBI, to review the existing prudential guidelines on restructuring of advances by banks/financial institutions and suggest revisions taking into account the best international practices and accounting standards. The Working Group had eminent bankers, and members representing the Reserve Bank of India, Indian Banks’ Association (IBA), CDR Cell and financial institutions. CAFRAL provided a platform for discussions on the recommendations of the Working Group and the rationale behind them. The various reactions to the recommendations were also discussed and recorded. This document presents the summation of the discussions.
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    Balance Sheet Management In Banks

    A bank’s core strength comes from its common equity capital. The level of its common equity capital determines the bank’s stability. Capital planning, thus, is extremely important for a bank, as its ability to do business and take risks depends on its capital adequacy. A capital plan helps …
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    Financing Agriculture Growth

    Agriculture sector is the largest employer in the Indian economy with 600 million people engaged in it. This makes India the country with the largest number of people engaged in agriculture. India is also the world’s largest producer of milk in the world. In the last 60 years the food grain …
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    Non-Performing Assets (NPA) Management

    The sharp increase in non-performing assets in the recent years has brought the focus on NPA management. There is a school of thought that NPA management should be just a part of credit risk management. Hence, it is not just the restructuring or recovery mechanisms that need to be focussed upon. Credit assessment and monitoring are equally, if not more, important…
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    Housing Finance - The Emerging Contours

    Housing has been a key driver of economic growth of a country. As per the Eleventh Five- year plan the housing shortage is 36 million dwelling units and to meet this demand an estimated Rs. 7,75,000 crores is required over the next five years. The key challenge is that very little ……
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What Makes A Good Bank?

Rajal
"Very insightful..."

Paper On Funds Transfer Pricing In Banks

Jayant
"Informative."


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