Centre's ownership of banks cuts 'lender of last...

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Centre's ownership of banks cuts 'lender of last resort' risk for RBI

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RBI acknowledges that government ownership of public sector banks (PSBs) reduces its risk management burden, justifying lower capital buffers for these entities. The central bank's economic capital framework report highlights the government's deep pockets and track record of capital infusion, which has improved PSB asset quality.

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