Banks in India face CVA fees double European levels
The Reserve Bank of India's use of a conservative standard CVA approach is overly prudent, say dealers
Banks in India face credit valuation charges that are more than double the amount of the standard approach used in European regulation; a level that dealers say is excessively prudent and acts as a barrier to effective risk management by corporates.
Although India is not due to bring in the full raft of Basel III legislation until 2018, banks have been forced to hold capital against CVA charges
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