From Acuite Ratings & ResearchCentral Bank of India announced that Acuite Ratings & Research has assigned Acuite AA-; Stable rating for the bank s Basel III Tier II Bonds.
The rating takes into account the strong ownership and demonstrated capital support from the Bonds Government of India. Acuite believes that the Government of India will continue to provide significant support to large public sector banks like Central Bank of India which plays a critical role in penetration of financial services and social development. The rating further factors in the improvement in capitalization levels, healthy retail liability profile and its large franchise with pan India
this post authored by Asani Sarkar
Once a bank grows beyond a certain size or becomes too complex and interconnected, investors often perceive that it is “too big to fail (TBTF), meaning that if the bank were to become distressed, the government would likely bail it out.
In a recent post, I showed that the implicit funding subsidies to systemically important banks (SIBs) declined, on average, after a set of reforms for eliminating TBTF perceptions was implemented. In this post, I discuss whether these subsidies increased again during the COVID-19 pandemic and, if so, whether the increase accrued to large firms in
In this paper, the authors investigate the optimization of systemic risk based on DebtRank by considering two contagion channels: interbank lending and common