Capital Regulation

Amended 'Code on Unit Trusts and Mutual Funds' to take effect in January with 12-month transition period. Proposals on classification of derivatives funds have been revised.

Starting in January 2019, the RBI will reduce the SLR holding requirement by 25 basis points every quarter until it reaches 18% in April 2020.

Asset quality in the banking system is deteriorating due to governance weaknesses, with banks dipping into their core capital due to non-payment of loans.

Banking system reforms will have to adapt to new risks to mitigate the effects of the next financial crisis, said BCBS secretary general William Coen, hinting at a future 'Basel IV'.

The RBI has reduced the holding time required for loans with maturities of over 5 years before they can be securitised.

Though domestic financial stability risks have abated, the RBNZ said higher bank capital requirements are necessary, while also easing mortgage lending curbs.

CBIRC proposes more stringent supervision of foreign banks to improve “risk resilience” and customer protection, following the release of measures to further open up the banking industry.

Basel III and OTC derivatives reforms were on track and broadly achieving their intended goals. High public debt and rising non-bank financial intermediation remain a focus area for the FSB.

The Net Stable Funding Ratio will apply to Indian banks on both a stand-alone and consolidated basis, and foreign banks on a stand-alone basis.

Regulators will designate more financial institutions as 'too big to fail' and subject them to additional prudential and supervisory requirements.