Banks are encouraged to find market-based solutions to strengthen their capital positions. However, in the event that not all capital needs can be met from private sources, public funds are available from the back-stop facility created under the programme, with amounts available that comfortably exceed the estimated capital needs. Deleveraging also proceeded as planned in 2011.
Several other initiatives in improving the supervisory function have been undertaken, including a prudential supervisory reporting system for financial institutions, improvements in procedures for financial inspection, sensitising the general public for better regulation of the activities of NBFCs and enactment of appropriate legislation to protect depositor interests in some States.