Banks plan shared standards for project finance lending
The Economic Times reports that state-run and private banks will discuss common lending parameters aimed at reducing regulatory arbitrage and operational differences among lenders.
TLDR
Banks are developing a common framework for project finance lending, The Economic Times reports. The effort aims to align how lenders operate, improve risk mitigation and avoid differing audit observations. Final guidelines from bank boards are expected to reduce the scope for regulatory arbitrage—taking advantage of differences in rules.
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