Further reforms in the Government Securities market have resulted in the rationalization of T-Bills market, increase in instruments and participants, elongated the maturity profile, created greater fungibility in the secondary market, instituted a system of delivery versus payment, strengthened the institutional framework through Primary Dealers and more recently Clearing Corporation, and enhanced the transparency in market operations.
These pillars address capital, liquidity and resolution. As already emphasised, this means first, ensuring a solid, true and fair capital adequacy position based on the actual risk exposure of banks. Second, we need requirements to ensure healthy liquidity management and stable financing, as included in recent Basel reforms. Last but not least, we need a credible resolution regime.