Thus, for the first time in 1966, the urban co-operative banks too came within the regulatory purview of the RBI. Prudential policy framework for banking regulation and supervision The basic rationale for exercising fairly close regulation and supervision of banking institutions, all over the world, is premised on the fact that the banks are "special" – for several reasons.
It is worth mentioning that gross market value of the outstanding CDS market increased in 2007 and 2008, owing to the re-pricing of credit risk in this period, reaching USD 5.7 trillion by December 2008, according to BIS data.