Indian banks have been well capitalised and have been conforming to the international best practices with regard to bank capital as delineated by the Basel prescriptions. We have announced migration to Basel III to strengthen the banks’ capital base and improve their ability to withstand systemic shocks. The norms would come into effect in a phased manner.
To further enhance our contribution to macroprudential oversight in Canada, we have two aspirations: 1. To develop a framework for system-wide macro-level stress tests that integrates different sectors of the financial system – banking, insurance and investment funds – as well as financial markets and financial infrastructures. 2. To improve our models to better understand the interactions between monetary and macroprudential policy.