Capital Regulation

NGFS members do not yet envisage calibrating prudential policies such as capital requirements on the basis of climate scenario exercises.

19 systemically important banks are named: the 6 big state-owned banks, 9 joint-stock banks and 4 municipal commercial banks.

All jurisdictions now have final rules in force for the CCyB, following implementation in China. Three more jurisdictions have adopted the final TLAC rules.

The law is needed to replace 'Resolution 42', which enabled the transparent sale of bad debts and collateral, but is due to expire next year.

The BSP proposes a 3 percent RRR for digital banks, aligning them with thrift lenders. A 7th licence will not be issued at the stage as previously planned.

Banks should operate with a mortgage serviceability buffer of at least 3 percentage points over the loan interest rate, and control lending at high debt-to-income ratios.

Regulatory action is needed to address disproportionately high capital requirements that would be imposed on carbon certificates by FRTB.

The RBI said Indian Overseas Bank is no longer in breach of the PCA parameters. Only Central Bank of India remains under the PCA framework.

SEBI proposes to progressively raise the net worth requirements for trading members, clearing members and depository participants by October 2023.

The new master directions will help develop India's securitisation market and help lenders remove loan exposures from their books.