 "rbi, reserve bank of india")
When, in February 2019, the Reserve Bank of India (RBI) published a discussion paper on proposed compensation guidelines for senior management and material risk-takers in Indian banks, the debate was focused on how this would constrain CEO compensation. What may not have received due attention was how such a proposal, if implemented appropriately, can transform Indian banking.
It can make risk management a core part of a bank’s strategic decision-making and planning process, as opposed to the peripheral position it now occupies. Risk-related projections in some cases tend to come out as an after-thought to assess the growth planning exercise.
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