Indian banks create op risk data consortium
Daily news headlines
MUMBAI – Indian banks are to launch a data-sharing consortium for operational and credit risk losses to aid Basel II implementation. The Credit Operational Risk Data Exchange (Cordex) will be a joint venture by the Indian Banks’ Association (IBA) and major Indian banks seeking to address the absence of requisite information for the switchover to the new capital requirements regime.
Banks already on board include Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, IDBI, Indian Overseas Bank, Punjab National Bank and Union Bank of India. The IBA has now sought registration for the new loss data-sharing corporation and says it expects more banks to sign up.
Indian banking has faced industry criticism over its bold claims of Basel II compliance. A few banks with overseas presences have partly implemented Basel II practices, while the domestic market remains largely untouched.
The IBA has pointed out that the new consortium is in the initial stage of its formation, with key details of transparency still to be worked out, such as how operational risk losses will be relayed to the consortium and published between the banks.
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