The dependence on off-site surveillance and on-site supervision by state agencies in respect of small (unit) banks, in addition to lowering the supervisory burden of the small entities, would also provide increased flexibility to the RBI to deploy its supervisory resources to the larger and more risky banks.
The Bank expects that, with stable or lower energy prices and with the inventory adjustment process well advanced, U.S. economic growth should strengthen during the second half of the year. The reductions in interest rates by the U.S. Federal Reserve should underpin this recovery. But of course, its exact timing and precise strength are difficult to predict.