Last week, the four federal bank regulatory agencies--the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision--decided to publish an interagency advance notice of proposed rulemaking (ANPR) for revisions to the existing risk-based capital rules. All four agencies are looking forward to comments from the industry and others on the proposal.
The Reserve Bank, therefore, ensured the necessary expansion in net domestic assets (NDA) through conventional open market operations (OMO) involving outright purchase of government securities in the secondary market as well as provision of liquidity through repos under in its daily liquidity adjustment facility (LAF) (Chart 3).