Similarly, as we observed very high credit growth in certain segments such as real estate, housing, non banking finance companies (NBFCs) and other retail credit, risk weights were increased, along with provisioning norms for standard assets.
Third, in terms of the evolving global prudential framework, the emphasis has generally been more on capital, as a means of reducing vulnerability to risks, than on prudential requirements for liquidity risk. Aspects relating to liquidity have been largely left to each regulator to assess and prescribe a suitable framework under Pillar II of Basel II.