RBI may change regulatory stance
With the change of guard at the top and the changing global financial conditions, the Reserve Bank of India (RBI) is planning to change its regulatory stance from micro- regulations to macro-prudential approach.
By ET Bureau |
NEW DELHI: With the change of guard at the top and the changing global financial conditions, the Reserve Bank of India (RBI) is planning to change its regulatory stance from micro- regulations to macro-prudential approach.
The central bank's policy will focus on cycial that will help banks deal with recession. Measures aimed towards helping the According to RBI executive director, Anand Sinha, speaking at a bankings seminar in Mumbai, said, `The policy (approach) needs to be modified from micro prudential to macro-prudential. The work is going on ensure that policies do not reinforce a downturn.''
Mr Sinha indicated that this has been the stance of central bank across the world since the crisis. Besides focusing on countercycilical measures, the central bank will also look at issues like compensation policies and the treatment of unregulated entities.
The central bank's policy will focus on cycial that will help banks deal with recession. Measures aimed towards helping the According to RBI executive director, Anand Sinha, speaking at a bankings seminar in Mumbai, said, `The policy (approach) needs to be modified from micro prudential to macro-prudential. The work is going on ensure that policies do not reinforce a downturn.''
Mr Sinha indicated that this has been the stance of central bank across the world since the crisis. Besides focusing on countercycilical measures, the central bank will also look at issues like compensation policies and the treatment of unregulated entities.
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