Some of the salient reforms undertaken in the financial system, included, among others, lowering of statutory reserve requirements; liberalizing the interest rate regime, first on the lending side and later, on the deposit side; infusing competition by allowing more liberal entry of foreign banks and permitting the establishment of de novo private banks; institution of prudential measures (capital adequacy requirements, income recognition, asset classification and provisioning norms for loans, exposure norms, accounting norms) and enhanced disclosures and levels of transparency in their annual audited statements to promote market discipline.
19. Over the period of reforms beginning 1992 through 2013, real bank assets have grown at a compound annual rate of about 10%; the growth rate of deposits and credit both in real terms, during the same period has been roughly of the order of 10% and 12%, respectively. 20.