The RBI has instituted a mechanism for critical analysis of the balance sheet by the banks themselves and the presentation of such analysis before their boards to provide an internal assessment of the health of the bank. The analysis, which is also made available to the RBI, forms a supplement to the system of off-site monitoring of banks.
We have challenging years ahead of us and I strongly urge the work of the Committee to continue at full speed. We mustn’t loose either the momentum or the window of opportunity for reform. How will these new regulations contribute to strengthening resilience of the financial system?