NHB directs bigger housing finance firms to appoint chief risk officer

Recently, the liquidity-starved DHFL had said it won't allow premature withdrawals of its deposits

National Housing Bank (NHB) on Wednesday directed bigger housing finance companies (HFCs) to appoint a chief risk officer (CRO) in a bid to improve risk management practices.

“While the boards of HFCs should strive to follow best practices in risk management, it has been decided that HFCs with asset size of more than Rs 5,000 crore shall appoint a CRO with clearly specified role and responsibilities,” NHB said in a circular dated May 29, adding that the CRO will act independently to “ensure highest standards of risk management.”

The circular added that the board of HFCs should put in place policies to