A high-power committee under the Financial Stability and Development Council (FSDC) has been set up to find ways for the banking sector to comply with Basel-III capital norms.
The decision was taken at a sub-committee meeting of FSDC here on Friday chaired by Reserve Bank of India (RBI) Governor Raghuram Rajan. “The sub-committee...discussed the capital requirements of the banking sector over the next five years in view of the Basel-III regulations and requirements for supervisory capital and decided to set up a high-powered inter-regulatory committee to explore ways of enabling banks to meet these requirements,” an RBI release said.
Recently, Finance Minister P. Chidamabaram had said that all banks satisfied the global capital adequacy norms (Basel III) and the government would keep on providing additional capital to the banks. The FSDC meeting also discussed implementing non-legislative recommendations of Financial Sector Legislative Reforms Commission (FSLRC) and setting up of a repository for investors. Also, it discussed about ways for setting up an effective resolution regime for the financial sector. Issues of greater harmonisation of regulations across sectors for similar activities were also taken up.
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The meeting also saw discussions on the report of the working group on ‘Resolution Regimes’ chaired by RBI Deputy Governor Anand Sinha and Economic Affairs Secretary Arvind Mayaram.