The commercial banks of the country have united to form a consortium in the form of a company called Loss Data Consortium (Cordex). Cordex would be collecting data related to frauds and security risk. The initiative of this new company has been taken by Indian Banks' Association.
The company would operate by first collecting historical data of all member banks related to issues where banks have faced operational risk.
The new company would be owned by as many as 13 banks with each bank having ownership of around 1 crore. Banks such as State Bank of India, ICICI Bank, Union Bank of India, Punjab National Bank, Bank of Baroda and Canara Bank, will be equity holders in the new company.
Banks have now assigned capital on various risks like credit risk, market risk and operational risk. While the extent of capital to be set aside for credit and market risks has been prescribed by RBI, banks have to decide on operational risk.
The new company Cordex will have loss of data, which is one aspect of operational risk, as a focus area. However, it will not disclose the identity of bank (that provide data as input) in their analysis.