On October 2 , one of the Reserve Bank of India's deputy governors spoke in Singapore thus:
( we quote extracts from Indian Banking Sector- A Regulatory Perspective Keynote address delivered by Deputy Governor, Reserve Bank of India at the Global Banking Conference organized by the ‘Mint’ at Singapore on October 2, 2015)
" I would argue that our regulations have been more forward-looking and when needed, more stringent than the internationally agreed standards. "...
"The principle that has guided our action in this regard is that the banks must recognize the problem and work towards resolution rather than ‘pretend and extend’ while also extending a helping hand in genuine and deserving cases so that any productive capacity in the economy is not put to jeopardy."...
" Introduction of a risk-based approach to supervision"
( we quote extracts from Indian Banking Sector- A Regulatory Perspective Keynote address delivered by Deputy Governor, Reserve Bank of India at the Global Banking Conference organized by the ‘Mint’ at Singapore on October 2, 2015)
" I would argue that our regulations have been more forward-looking and when needed, more stringent than the internationally agreed standards. "...
"The principle that has guided our action in this regard is that the banks must recognize the problem and work towards resolution rather than ‘pretend and extend’ while also extending a helping hand in genuine and deserving cases so that any productive capacity in the economy is not put to jeopardy."...
" Introduction of a risk-based approach to supervision"
VIEWS OF THIS BLOG:
On 5th October 2015, RBI issued prompt corrective action on Indian Overseas Bank (which incidentally has a presence in Singapore. Was the Monetary Authority of Singapore informed of the IOB predicament? The Deputy Governor said that MOU with supervisors of 29 countries for promotion of greater supervisory co-operation and information exchange had been entered into.)
A corrective action is triggered if a lender's capital adequacy ratio goes below 9 per cent, net non-performing assets go above 10 per cent or its return on assets drops below 0.25 per cent.
Views expressed here are academic. The blog bears no risk or responsibility. The blog recommends no investment strategy.
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