However, the outturn in Asia is still below the rapid pace experienced in the earlier recovery, with the exception of Japan where earthquake-related damage is having a significant effect on economic activity. At the same time, growth in other emerging markets and transition economies has been encouraging. However, uncertainties linger on the horizon.
Let me now briefly talk about the theoretical model discussed by RBI in its discussion paper of March 2012. Dynamic provisioning framework in India is more or less based on the FSA model.