The new banking landscape would impact the processes currently in vogue in the sector. Let me highlight some of these in greater detail. Competition and consolidation 17. Competition and consolidation in the sector is an impending development that the banks would have to contend with sooner rather than later. Two new private sector banks should start operating within this calendar year.
Smaller banks must assess carefully the impact of this measure on their capital ratios and should start planning as of now any necessary countermeasures. The move to IFRS 9 and the removal of the AFS filter will increase the volatility of regulatory capital.