While there are strong arguments for providing such facilities to them given their criticality in the financial system, the issue of moral hazard needs to be adequately addressed while providing such support. There are also quite a few areas where work is in progress such as counterparty credit risk, capital for exposures to CCPs, etc.
Some dilemmas and debates Having given a broad overview of regulatory reforms, let me now touch upon some of the concerns, misgivings and apprehensions over the implementation of new regulations. The most important concern relates to the adverse impact of higher capital requirements on growth, more so in the case of EMEs. This is a very valid concern.