The Government and Reserve Bank outlined a roadmap on foreign investment in banks in India in February 2005, which provides guidelines on the extent of their presence until 2009. This roadmap is consistent with the overall guidelines issued simultaneously on ownership and governance in private sector banks in India.
They are a fundamentally different problem, and one that arises even absent any individually systemic institutions or any TBTF issues. 3  An alternative mechanism that works similarly is when the third party is a regulated intermediary and mark-to-market losses reduce its capital ratios, and again force it to involuntarily sell assets in the face of falling prices.