In addition to the issue of which securities can be held as liquid assets, the other dimension to liquidity regulation is how many of these assets need to be held. In this regard, the Basel III liquidity framework makes certain assumptions about the likely calls on liquidity that a bank would experience during a 30-day period of stress.
I thought it appropriate therefore to use the platform provided by this conference to highlight some of the challenges we in India face in bank resolution, and in the process identify the tasks ahead for DICGC. Indian financial architecture 8.