In addition, an assessment of compliance with the Board-approved policies on collateral management, credit risk mitigation, disclosures and ICAAP, adequacy of the management information system, impact of various elements of the portfolio on the capital adequacy ratio, as also the results of the process for validating the CRAR are also to be placed before the Board.
The validation mechanism, to my mind, would be a critical element of the parallel run as it would help ensuring the accuracy and integrity of the entire process. I would urge all of you to pay due attention to the parallel run exercise in the interest of smooth migration to Basel II on the cut off date.