Page 4 - Credit Risk
Credit guarantee scheme for NBFC papers extended by three months
Greater flexibility now given for purchasing AA and below-rated papers
 "Credit guarantee scheme for NBFC papers extended by three months")
Chinese banks under pressure as bad loans grow in coronavirus: Regulator
Chinese lenders recorded rising soured debt and shrinking net interest margins, a gauge of banks' profitability, amid the economic impact from a prolonged pandemic
 "Chinese banks under pressure as bad loans grow in coronavirus: Regulator")
Sebi eases categorisation norms to allow debt MFs to add liquidity
Mutual funds had requested regulator to allow higher limits for G-secs, T-bills
 "Sebi eases categorisation norms to allow debt MFs to add liquidity")
Centre should charge for guarantee
Only PSUs can raise money cheaply today since it is assumed that the government won't let them default
Ind-AS increases provisioning pain for NBFCs amid Covid-19 pandemic
Covid-19 has led to lot of uncertainties including those pertaining to the income level of borrowers and hence, their loan repayment ability, savings habit, cash flow position of corporates
 "Ind-AS increases provisioning pain for NBFCs amid Covid-19 pandemic")
The logjam of risk aversion
Banks need sovereign support to lend to non-AAA borrowers in the wake of the Franklin crisis
 "The logjam of risk aversion")
MFs investing in fixed-income securities see Rs 28,000 crore outflow in Feb
A total of Rs 43,825 crore was taken out from liquid funds, which invest in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon.
 "MFs investing in fixed-income securities see Rs 28,000 crore outflow in Feb")
Rating downgrades slip to 15-month low in Jan as incremental risks decline
Market participants say full recovery from credit risks can take more time
 "Rating downgrades slip to 15-month low in Jan as incremental risks decline")
UP farm sector credit flow estimated at Rs 2.94 trillion in FY20-21
The estimates are 9.7% higher compared to Rs 2.68 trillion in FY20
 "UP farm sector credit flow estimated at Rs 2.94 trillion in FY20-21")
Fintech start-up offering tools to reduce credit risk raises $3.2 million
Less than 15 per cent of the 50+ million small businesses in India have access to formal credit
 "Fintech start-up offering tools to reduce credit risk raises $3.2 million")
RBI mandates banks to link fresh retail loans to external benchmark
Move to cover fresh retail, MSME loans from Oct 1; home, auto loans to get cheaper
 "RBI mandates banks to link fresh retail loans to external benchmark")
Ask AI: Lenders bring in machines to rate credit risk of customers
The race to offer loans to customers who do not have any collateral to offer has prompted innovators to look at new sources of data on them
 "Ask AI: Lenders bring in machines to rate credit risk of customers")
All you need to know about credit risk
All kinds of investments entail some amount of risk. Credit risk, however, takes the center stage in fixed-income investment.
 "All you need to know about credit risk")
