https://www.livemint.com/industry/banki ... 23645.html
The committee reports that India’s central bank is yet to publish the securitisation framework and rules on total loss-absorbing capacity (TLAC) requirements. Globally, the norms on securitisation exposures held in the banking book had come into effect on 1 January, 2018.
The RBI also missed the deadline for meeting the TLAC requirement, which ensures that G-Sibs have adequate loss absorbing and recapitalisation capacity so that critical functions can be continued without taxpayers’ funds or financial stability being put at risk. These include instruments that can be either written down or converted into equity, like capital instruments and long-term unsecured debt. The TLAC constitutes 16% to 20% of a group's consolidated risk-weighted assets.
The RBI is also yet to come out with draft regulations on revised Pillar 3 disclosure requirements, which took effect from end-2016. Pillar 3 disclosures aim at ensuring market discipline through disclosures in prescribed format, while Pillar1 focuses on capital adequacy and Pillar 2 looks at the supervisory review process.
According to the report, India’s G-sibs are in the process of implementing rules on interest rate risk in the banking book (IRRBB). These regulations refer to the current or prospective risk to the bank’s capital and earnings arising from adverse movements in interest rates that affect the bank’s book positions. The central bank had issued draft guidelines in February 2017 and is yet to come out with final guidelines.
Globally the rules were effective from end-2018.
The reporter hasn't gone beyond the sensationalism and even bothered to even cold search the BCBS report for 5 mins, which BS (bhediya samachar) did
1. The link here gives the report for other countrieshttps://www.bis.org/bcbs/publ/d464.pdf
China the other peer country we should be looking to is more red
2. Even developed countries like SoKo (assuming NoKo is not referred as Korea) is also red in the areas
3. Most EU countries are yellow because the guidelines and many of the work gets done by EU and banks have common operations acorss diff countries
4. Indian govt is a lot more invested in the banks and would be unlikely that any bank will be allowed to fail, even if pvt so TLAC, while helpful and transparent and a good to have measure is not absolutely essential
5. Disclosure requirements, i think they wiull come but the costs right now are not justified esp in a global economy headed to recession