In Thiruvananthapuram, Kerala Bank is set to implement a rating system for primary co-operative banks across the state, focusing on financial discipline and performance.
This initiative aims to restore trust and transparency amidst the ongoing financial crisis. Despite being the apex body, Kerala Bank lacks direct control over these banks.
Through ratings, it seeks to indirectly enforce financial discipline. Higher-rated banks are expected to receive increased financial support, enhancing stability and accountability in the co-operative banking sector.