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    HomeNewsOpinionUsing risk weights is not without risks for the RBI

    Using risk weights is not without risks for the RBI

    Capital allocation may not necessarily become more prudent due to risk weight changes. Commercial compulsions may force lenders to reduce potential lending in less risky segments even as they meet increased capital requirements due to hike in risk weights of a specific loan segment

    Aparna Iyer
    December 12, 2023 / 07:55 IST
    Are risk weights the panacea for redirecting loans?
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