Banks in an economy have been the epicentres and also the first casualties of most of the financial crises. Hence, it is important to be right in assessing the risks associated with the banks. Perhaps it is with this purpose in mind that rating agency Moody's has put rating of subordinate debt of 11 Indian banks on watch. The decision is not triggered by anything fishy going on in banks. But it is just a case of Moody updating its rating methodology. So what is different in the new approach? Well, unlike in the past, the agency will assume that the Government will not bail out subordinate debt holders in case of a crisis. It is the increasing uncertainty about Government's response in cases of banking crises due to which Moody's has adopted a more guarded stance. As per the agency, the evidence that the Government will support subordinate debt holders in case of a crisis is waning. As such, a stricter way to assess the rating of such debt is warranted.