00e0000 .Is ISIS still a threat? .Banking Reforms By- Yasmin Gill
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plus Discount Code 'yashi.gillo1' 10% ETHICS, INTEGRITY & APTITUDE Complete Course on Ethics, EE integrity& Aptitude Lesson 27 Today, 6:00 PM Yasmin Gill
ISIS- IS IT OVER? -IE The military defeat of the Islamic State, declared with capture of Baghuz in Syria, had been in the making for months Since 2016, when Iraqi forces started a determined push to take back territory usurped by the post-al Qaeda "Caliphate", the group has steadily lost territory The fall of Mosul in mid-2017 marked a significant milestone Around the same time, a US-backed coalition had started retaking IS territory in Syria Raqqa, the self-declared capital of the IS, in Syria, and the last big city it held in that country, was freed from the IS in October 2017 There was a terrible civilian toll and to this day, the city remains uninhabitable, while Iraq struggles to rebuild Mosul At the height of its power, the IS controlled almost a third of Syria and a long boot-shaped piece of territory in Iraq attracted thousands of young people from across the world, including to the great shock of those countries, from North Am erica and Europe.
It also attracted donors from which it raised billions of dollars. Plus it sold oil from the large fields in Syria and some in Iraq under its control to a shadow world of clients It inflicted great brutality on people, architecture, libraries However, IS as an ideology had long crossed over the steadily s hrinking geographical borders of the so-called Caliphate In that sense, declaring victory over the IS may be premature While thousands of IS fighters and their families have dispersed from their strongholds in Syria and Iraq into the deserts, the gro up is present in Afghanistan where it is known as Islamic State o f the Khorasan In the manner of al Qaeda at its height, the IS now has indepe ndently operating franchises across the world, and individualsa nd small bands of individuals ready to carry out terrorist attacks in several parts of the world. Only a handful of IS-inspired youngsters have been detected in India, some after they had left for Syria, but fortunately, most as they were being radicalised by online mentors.
BANKING NORMS For now, Indian banks burdened by sour loans will not have to admit the true size of their likely losses RBI has postponed the implementation of the Indian Accountin g Standards (Ind AS) norms for banks indefinitely, citing the need for amendments to be made by the government to the RBI had initially planned to implement the norms starting April 1, 2018 in order to bring Indian accounting standards in line with international standards, but the Centre's delay in enacting the necessary amendments had given breathing space for banks for another year It is believed that the adoption of the accounting standard could cause significant credit losses to banks, which will be forc ed to prematurely recognise losses on their loans and build up t he necessary underlying capital required to overcome the impac t of such losses
er the proposed norms, financial institutions like banks will have to calculate expected credit losses (ECL) on their loans duri ng each reporting period and make necessary adjustments to th eir profit-and-loss account even before a borrower may default on a certain loan This is in contrast to the present accounting norms wherein ba nks incur credit losses in their books only after outstanding loan s have been in a state of default over a certain number of days as stated in the rules laid down by the RBI -Given the losses they would likely have to incur, it is understan dable why banks would try to avoid adopting the accounting no rms for as long as possible So the delay in the implementation of the Ind AS norms is not surprising at all Further, banks will have to improve their ability to forecast futur e credit losses with precision. Until this happens, bank earnings could experience volatility.
Central government has been trying to bail out public sector b anks without carrying out the structural reforms required to clea n up balance sheets For the new norms will cause more outstanding loans to be added to the huge existing pile of bad loans and cause further headaches to the government According to estimates made by India Ratings & Research, publ ic sector banks would have to make additional provision of over a trillion rupees if the norms are adopted right away Centre may not be able to foot the bill, and may instead prefer to help public sector banks to hide the true size of their bad loa ns This does not bode well for the health of the banking systema s banks that do not recognise their problems might not resolve them.
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