HYDERABAD: S.A. Bhat, Chairman and Managing Director, Indian Overseas Bank, has advised financial institutions to take lessons from the economic slowdown and be prepared for meeting any resultant situation.

Speaking at a seminar on ‘Credit risk management: new horizons’ organised by the Professional Risk Managers International Association (PRMIA), Hyderabad chapter here on Saturday, he said that unlike previous recessions, detailed information of the current one and the ways adopted to handle it was available. On the correlation between risk management measures adopted by financial institutions and recession, Mr. Bhat felt it was not always correct to say the current economic turmoil was the result of a total failure of credit risk management measures by global financial industry. Amitabha Guha, Director, AP State Finance Corporation and former MD of State Bank of Hyderabad said there was need for banks to create a cadre of professionals to assess credit risk.

Dilshan Rodrigo, Assistant General Manager, Hatton National Bank, Colombo said the Basel II norms, which aimed at mitigating the credit risk, needed to take into considerations the realities from emerging Asian markets. B. Yerram Raju, PRMIA Regional Director, also spoke.